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Warning to Charities that fail to send in returns and accounts

CHARITY COMMISSION News Release (PR09/08) issued by The Government News Network on 10 March 2008

The Charity Commission is introducing new measures to ensure that charities that no longer operate are removed from the Register of Charities. Charities that fail to provide evidence that they are still operating will, after a series of warnings, be removed from the Register.

In the last year, 25% of charities on the register filed their accounts and returns late, i.e. more than ten months after their financial year end. 9,000 charities with a previous known income of more than £10,000 have not sent an annual return or accounts for the last financial year, 1,200 of which have not sent an annual return or accounts for more than six years.

If a charity fails to send in its documents on time, the Commission notifies it that it is in default. The new approach involves a second default notice being sent four months later, explaining that the charity will be removed from the Register if due documents are not submitted.

If after a further four months there is no response, all the known trustees of the charity will be notified that the charity may be removed from the Register if due documents are not submitted within four months. If a full year after the original deadline the relevant documents have still not been submitted, the charity will be removed from the Register and, where appropriate, action will be taken to protect its assets.

Charities that have not been in touch with the Commission for several years may be subject to a shorter notice period before they are removed from the Register.

Andrew Hind, the Commission's Chief Executive, said:

"Charities are accountable to their donors, beneficiaries and the wider public. Reporting requirements are not excessive, yet a quarter of all charities miss this deadline and file late. This is unacceptable. With high public interest in charity accountability, charities simply have to do better.

The public have a reasonable expectation that the Register of Charities will not have organisations on it that are no longer operating. Our new approach should ensure that such charities are promptly removed."

Ends

Notes to Editors:

1. The Charity Commission is the independent regulator for charitable activity in England and Wales. For more information see our website at http://www.charitycommission.gov.uk
2. Charities can access 'Help with preparing charity accounts and report' on the Charity Commission website in the 'Meeting our requirements' section.

For more information please call Sarah Miller on 020 7674 2366