Annual Return: declaration of overseas sources of income
The Home Secretary has outlined the findings of a review into extremism in a written statement to the House of Commons. Whilst the main findings of the review will be of little consequence to charities, one sentence may have large consequences for the charity sector.
“The Charity Commission will be introducing a requirement on charities to declare overseas funding sources. The Commission has been discussing this issue with charities over recent months.”
This declaration will make up part of the annual return, which is in the process of being upgraded. There has been an immediate backlash to this statement, as there has been no public consultation on this. However it seems that this is going to take effect, though the details are yet to be disclosed.
It is likely that there is little charities can do to deflect this new reporting requirement, and it would be sensible for charities to consider how they could monitor overseas donations. Whether this means running analysis of JustGiving reports, or adding an address line on pledge cards, it is likely that this new reporting requirement will add a considerable headache to charity admin.
To reduce that headache, our experienced team of partner-led accountants and auditors can guide you through the charity regulations and advise you on practical ways to ensure compliance. For more information, please get in touch with your usual contact partner or use our enquiry form.