Correspondence

Charity Commission News: Issue 68

Published 9 August 2022

Applies to England and Wales

Your new Charity Commission account

We plan to engage more proactively with trustees in future, and work is underway to make this ambition a reality.

What does this mean for you? Initially, we’ll be asking all charity contacts to set up new, individual Charity Commission accounts to access services such as filing an annual return or changing a governing document.

To improve the data we hold, we will also be asking charities to update information on what they do, who they help and where they work. Over time, this will help us to better support trustees with the information and support they need to run their charity well. It will also help improve wider understanding of the scope and scale of the charity sector among policymakers and the public.

We will keep you up to date on progress over the next few months. In the meantime, if you are a trustee or nominated charity contact, please check that the information we currently hold on you and your charity is correct.

Online services for charities

Charities Act 2022: the first provisions are coming into force

This autumn, the first set of changes introduced by the new Charities Act 2022 will come into force.

These include:

• a new power that trustees can use to be paid for providing goods to the charity
• a new power to enable trustees to process certain ‘ex gratia’ payments – where they reasonably feel a moral obligation – without coming to the Commission (financial thresholds will apply)
• where fundraising appeals do not raise enough money, or too much, simpler and more proportionate rules will apply

Other provisions included in the Act will make it more straightforward for charities to change their governing documents, grant more flexibility in using ‘permanent endowment funds’ and allow greater flexibility around the advice needed when selling land. These will come into force next year.

Charities Act 2022: information about the changes being introduced

Still time to respond to our Annual Return consultation

We’ve launched a formal consultation on proposed changes to the Annual Return, designed to ensure we are collecting the right information in the years ahead.

The Annual Return is an online form that all charities with yearly incomes of £10,000 or more must complete within 10 months of the end of their financial reporting period.

The return has not changed significantly since 2018, and after a comprehensive review, the Commission is now proposing to update the question set which charities will need to complete from 2023 onwards.

Share your feedback

Gift Aid and using tax agents

Gift Aid is a very welcome lifeline for many charities and if you don’t currently claim it check whether you are eligible.

But if your charity is claiming Gift Aid, it’s really important to make sure your legal obligations are met – such as having valid declarations and the correct records that accurately identify your donors along with the dates and amounts of their donations.

Many charities have a tax agent, such as an accountant or bookkeeper, who deals with their Gift Aid claims on their behalf. Some of these agents are also authorised to receive the repayments on behalf of the charity. HMRC expects all tax agents to meet its standard for agents, regardless of whether they are a member of a professional body, or which professional body they belong to.

HMRC works closely with tax agents and will take action to uphold the standard if they find wrongdoing.

HMRC: the standard for agents

Save the date

Our Annual Public Meeting 2022 will be held in Cardiff on Wednesday 12 October. It will be also broadcast live. Register to apply now

Charity Fraud Awareness Week takes place between 17-21 October

Trustees’ Week will take place 7-11 November, with the theme for this year being: Making a difference in changing times.