Correspondence

Charity Commission News: Issue 58

Published 2 October 2017

This correspondence was withdrawn on 20 October 2020

This document has been archived as it is over 2 years old.

Submit your 2017 annual return and final deadline for 2016

The 2017 annual return service is now available. You will need to submit your annual return for 2016 before you can do the return for 2017.

The deadline for submitting your 2016 accounts is 31 October 2017, if your charity has a 12-month accounting period. Make sure you file early to avoid any last minute rush.

We expect high demands for the annual return service and advise using it outside peak hours (10am to 3pm) to avoid any problems logging in.

Find out what you need to do to prepare and send your charity’s annual return.

Have your say on the 2018 annual return

We have opened a consultation for next year’s annual return. This consultation is the second part of a two-year project to review the key information that we collect and display from charities.

We intend to develop a more dynamic annual return that is better targeted and easier to use for charities. Charities that are smaller and have simpler operating structures will answer fewer questions, whereas those that are larger and more complex will be required to answer more.

Charity Governance Code

We have blogged about the latest edition of the Charity Governance Code. The Code is a practical tool to help charities and their trustees develop high standards of governance.

Sarah Atkinson, Director of Policy and Communications at the Charity Commission said:

The bottom line is, good governance is no longer an optional extra. It’s essential to charities’ effectiveness and probably their survival too. Charities need to be able to demonstrate that they take it seriously, allowing it to change the way they operate.

The Charity Governance Code represents a standard of good governance practice to which all charities should aspire. We encourage all charities to read, follow and apply it proportionately to their circumstances. And if you sign up to the code, go public about it on your website or your annual report. Be prepared to stand up and be counted, and see the difference that makes.

Trust and confidence in the Charity Commission 2017

We have published independent research into the ‘Trust and confidence in the Charity Commission’.

It tells us that public trust in the Charity Commission has held steady since 2015 (at 6 out of 10) and the public (88%) think we do a vital job. There’s also strong endorsement from charities and the public for our regulatory priorities.

You can read our blog about the research findings, and view the report.

Getting external scrutiny of charities right

As charity trustees you have a legal duty to have an external scrutiny of your charity’s accounts once the income goes over £25,000. The options are audit, or if small enough, independent examination.

We’ve recently published new directions and guidance for independent examiners CC32, which are effective from 1 December 2017. Trustees should make sure that your examiner has a copy of the new guidance. Examiners need to follow CC32 to carry out the examination properly.

For more information on the accounting, reporting and external scrutiny requirements read charity reporting and accounting: the essentials (CC15d).

How to report serious incidents in your charity

We’ve improved our guidance to help trustees identify serious incidents and how to report them.

Charity trustees have a responsibility to report serious incidents. A serious incident is an adverse event, whether actual or alleged, which results in, or risks significant:

• loss of your charity’s money or assets
• damage to your charity’s property
• harm to your charity’s work, beneficiaries or reputation

If a serious incident takes place, you need to report what happened and explain how you are dealing with it, even if you have reported it to the police, donors or another regulator.

Making grants to an organisation that is not a charity

We recently updated our grant-funding an organisation that is not a charity guidance.

It explains the principles that apply to grant-making and the processes trustees should adopt to help you comply with your duties when making grants to non-charitable organisations (and to charities).

The new guidance highlights the following key steps:

• understand your charity’s purposes: only make grants on projects or services that will help achieve your charity’s purposes
• have in place appropriate systems: to receive, assess and make decisions about applications
• undertake risk assessment and due diligence: carry out appropriate checks on applicants before making your decision
• understand the limits of funding a non-charity: when you can (and cannot) pay support costs
• set written terms and conditions, and appropriate systems for monitoring spending of the grant
• what to do if things go wrong

Charity Commission welcomes its new Chief Executive

In July, we welcomed our new chief executive Helen Stephenson CBE.

Helen came from the Department for Education, where she was director of early years and childcare, and has experience of senior leadership across the public and voluntary sectors. She has also served as director and deputy director of the Office for Civil Society, and has held senior roles at the Big Lottery Fund and the Shaftesbury Society.

Helen Stephenson CBE said:

The charitable sector plays a crucial role in our national life and I am delighted to be joining the Charity Commission at this important time.

It is an honour to be leading the dedicated and talented team at the Commission and Paula Sussex is handing over an organisation that is in excellent shape, well equipped to meet the challenges of the future.

I look forward to working with the Commission’s staff to continue the ambitious plans we have set.

After her first couple of weeks with the Charity Commission, Helen also blogged about her vision of the Commission, and for the Commission.

Updates to financial sanctions reporting requirements

HM Treasury’s Office of Financial Sanctions (OFSI) is responsible for ensuring that financial sanctions are properly understood, implemented and enforced in the United Kingdom.

It has updated its guide to financial sanctions to include a new chapter on reporting obligations. This is to reflect an extension of OFSI’s powers to take action against those who do not report information that could undermine financial sanctions.

We encourage all charities to read and familiarise themselves with this guidance and act in accordance with the reporting obligations set out within it.

General Data Protection Regulation

From 25 May 2018, the General Data Protection Regulation (GDPR) will come into force. The GDPR applies to ‘controllers’ and ‘processors’ of data.

The definitions are broadly the same as under the Data Protection Act (DPA). The controller says how and why personal data is processed and the processor acts on the controller’s behalf. If you are subject to the DPA, it is likely that you will also be subject to the GDPR.

The Information Commissioners Office (ICO) have produced a handy ’12 steps to take now’ document and a self-assessment tool to help you prepare for the new regulation.

We are advising all charities to check the ICO website regularly for updates and follow all guidance issued by the ICO about GDPR.

Cyber security in charities research

The Department for Digital, Culture, Media & Sport has carried out research with UK registered charities to explore their awareness, attitudes and experiences around cyber security.

This is part of the government’s National Cyber Security Strategy which aims to make the UK the safest place to live and work online.

You can read the cyber security in charities research on the GOV.UK website. This will help you to review and assess your cyber security processes, to help keep your charity safe.

Charity fraud awareness week

The second national charity fraud awareness week is being held on 23-27 October 2017, led by Charity Commission and Fraud Advisory Panel along with members of the Charities Against Fraud partnership.

The campaign aims to raise awareness of fraud risks so charities recognise the warning signs and develop an effective response.

Charities are encouraged to support the week through their own initiatives and can follow the conversation on social media using the #CharityFraudOut hashtag.

Supporters’ kits will be available on the Fraud Advisory Panel website from the 1 October 2017.

Keeping in contact with the Charity Commission

Our contact centre is open 10am to 12noon and 1pm to 3pm, Monday to Friday on 0300 066 9197. We can help if you are experiencing technical problems with an annual return, a registration application or any of our online forms.

You can also sign up for GOV.UK alerts. This is the simplest way to keep up-to-date with the latest information we publish on our website. You’ll be asked for an email address to create a subscription, and can choose how often you’d like to be alerted.

It is also useful to follow us through our social media channels Twitter and LinkedIn. We regularly share important information and updates for the charity sector.