The Charity Commission, the independent regulator of charities in England and Wales, played a pivotal role in enhancing transparency, accountability, and impact within the charity sector in 2023. Through a series of strategic updates, the Commission demonstrated its commitment to upholding the highest standards of governance and practice.
Internal Financial Controls For Charities (CC8)
In April, the Charity Commission updated CC8 which details the requirements of trustees if charities are to achieve their aims. Internal financial controls are an essential part of helping trustees to meet their legal duties, administer the charity finances and ensure quality of financial reporting. More details can be found here.
Managing A Charities Finances (CC12)
In June, the Charity Commission updated CC12 which emphasizes the importance of governance and risk management in the charity sector. It provides guidance on various aspects of governance, including board effectiveness, conflicts of interest, and risk management. The guidelines aim to foster a culture of accountability and transparency within charities.
Investing Charity Money (CC14)
CC14 was updated in August and this enhances trusteeship through emphasizing risk management, long-term investment, transparency, and external expertise. These guidelines empower trustees to make informed decisions for the charity’s long-term benefit.
Streamlined Reporting for Enhanced Transparency
To simplify the reporting process for charities, the Commission launched the new Annual Return (AR23). This streamlined approach enabled charities to directly submit figures from their accounts, reducing their burden and enhancing the accuracy of financial reporting. This move fostered greater transparency, enabling the Commission to effectively monitor the financial health of charities.
Overall, the Charity Commission’s updates in 2023 outlined its dedication to upholding the highest standards of charity governance and practice. By enhancing trustee governance, promoting responsible investment decisions and streamlining reporting the Commission is shaping a more transparent, accountable, and impactful charity sector. These efforts safeguard public trust, ensuring that donated funds are used wisely to address pressing social and environmental challenges.
