Today (Wednesday 21st December), the Charity Commission has published an updated set of questions that charities will have to complete as part of their 2023 Annual Return.
A number of changes and improvements have been made to the new Annual Return as a result of feedback from charities and interested parties. This follows a full consultation launched by the regulator which ran from the 9th June 2022 to 1st September 2022.
The Annual Return is the online form that all charities with yearly incomes of £10,000 or more complete within 10 months of the end of their financial reporting period. It must also be completed by all those registered as charitable incorporated organisations (CIOs).
Following the consultation, changes we have introduced in the 2023 Annual Return are:
- A reduction in the maximum number of questions that can be asked of charities to 49, 3 less than proposed in the consultation
- The introduction of income thresholds for 5 of the new questions to further reduce the burden for smaller charities
- Reworded 19 questions to improve clarity and/or reduce resource and time required of charities where possible
- Substantial improvements in the glossary and guidance we provide to help charities answer questions quickly and accurately.
A new guide will be released in January to support charities as they set about compiling the new information required. The number of questions asked of all charities in AR23 will increase slightly, to 26 - however this is 4 less than proposed in the consultation. A further 6 questions will be removed from the Annual Return from 2024 onwards, once some data has been captured in AR23, reducing the number of questions further at this point.
As is the case currently, the amount of information needed by the Commission will continue to vary based on the size and scope of any individual charity.
Helen Stephenson, CEO at the Charity Commission, said:
I'd like to thank all of those who took the time to respond to our consultation. We have listened to feedback and are now introducing changes that will improve the Annual Return for charities and allow us to regulate more effectively.
We know that it will take time for charities to adjust their reporting and so we will be publishing a guide in January to help trustees and nominated contacts as they look to file their returns next year.
I'm delighted we have reached the latest milestone in our ambitious strategy to become a more data-driven regulator and help ensure we are serving the public and sector as best we can.
The Annual Return and these improvements are a key step to improve the data reported by charities, enabling the Commission to better identify risks and problems in the sector, helping the public make informed and confident choices about charities, and allowing policy-makers, researchers, the sector, and the public to gain a richer understanding of the sector in England and Wales.
Next steps
January 2023:
The Commission will publish a new guide to assist those looking to complete their Annual Return for financial years ending on or after 1st January 2023. The guide will also set out to further explain how data will be utilised by the Commission, following sector feedback.
Spring 2023:
The Commission will be expanding enrolment onto the My Charity Commission Account. Trustees and nominated contacts will, if not already, be invited to create an account on this platform.
Early Summer 2023:
The Annual Return filing portal opens via the My Charity Commission Account platform. Trustees will be expected to submit their Annual Return for 2023 and future Annual Returns through the regulator's improved digital service.
Changes do not apply to AR22 and charities should continue to submit these as planned. The full set of questions that will make up the Annual Return for 2023 are published on gov.uk.
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