The Charities Commission has released the 2020 charity annual return services allowing charities to start submitting their annual returns for 2019 on line, this year The Charities Commission has made a number of new mandatory Charity disclosure requirements. Including the reporting on the value of income by country.
The major new charity disclosure requirement changes was brought about by the Statement of Recommended Practice 2015 (SORP) this change is to clarify the need for comparative information that’s included for all amounts presented within the Charities Annual Accounts.
The country data now needs to specify the exact source and amount of income from:
- Overseas governments;
- quasi government bodies;
- The EU.
- Overseas charities and non-governmental organisations (NGOs)
- individual donors resident overseas
- overseas institutional donors such as private company donations
There is a threshold for individual donors and private institutions with payments of over £25,000 or 80% of a charity’s income, which all needed to be reported.
Annual return questions largely depend on the type of charity and its principal activities, but typically cover the following areas:
- financial information, like income and spending ;
- income or contracts from central government or local authorities ;
- income from or work done outside the UK ;
- trading subsidiaries ;
- trustee payments; and
- staff salary bands and benefits.
New Charity disclosure requirements will see all incorporated charitable organisations (regardless of its income) and other unincorporated registered charities with a gross income within the financial year with income over £25,000 need to complete annual report and accounts first, and then upload PDF copies of the trustee annual report, accounts and independent examiner’s report; to the Charity Commission within 10 months of the end of the charity’s financial year. For example, if the financial year-end was 31 August 2019, the deadline would be 30 June 2020.
There is to be a major overhaul of the way charity accounting rules work whilst Charity SORP framework is being developed, following a highly critical Government review. SORP is expected to become more simplified, particularly for smaller charities. Amongst other things, to change, the re-defined classification on “larger” charities those with a gross income over £500,000.