This page details relevant changes in the regulatory and financial reporting environment. Further details of many changes are set out on our charities sector page.

  • Regulatory issues and other matters
  • Charity commission (“CC”)
  • Financial reporting update
  • Scottish charities
  • Seminars and publications
  • Regulatory issues
  • Charity commission
  • Financial reporting update
  • Scottish charities
  • Seminars and publications

Regulatory issues

Charities Act 2022

In March 2022, the new Charities Act 2022 was passed into law. The provisions amended by the updated Act have now been implemented by the Charity Commission. A summary of the changes can be found here.

Fundraising Regulator Code Review 2022-25

The Code of Fundraising Practice applies to all fundraising carried out by charitable, philanthropic and benevolent organisations and third-party fundraisers, extending to organisations employed by charities to raise funds for them, and online fundraising platforms, across England, Wales and Northern Ireland.

The Fundraising Regulator launched its Code of Fundraising Practice Review 2022-2024 and publication of the revised code is expected in Spring 2025 alongside a timetable for implementation.

Charity Governance Code

The Charity Governance Code aim is to help charities and their trustees develop high standards of governance and to demonstrate exemplary leadership and governance. The Code is a practical tool to help trustees achieve this. The process for a review of the Code was launched in 2024, and an updated version of the Code, is expected to be published in early 2025. 

Charity commission

Charity Commission News

Charity Commission News (“CC News”) is the Commission’s newsletter, which provides essential information for charity trustees and their advisers. The Charity Commission News: September 2024 was published in November 2024.

Charity Commission Publications

The Charity Commission produces regular publications and guidance on topical matters and also guidance which have been recently published or updated:

In the last 6 months, the following Charity Commission ‘CC’ guidance publications have been updated:

Internal financial controls for charities: protect your charity from fraud and loss (CC8) September 2024 
 Improving your charity's finances (CC12) September 2024
Decision-making for charity trustees (CC27) September 2024 
Charity meetings (CC48)  July 2024 

A full collection of the CC guidance publications can obtained from here.

Charity Commission news and communications

Other notable Charity Commission news and communications over the past 6 months are as follows:

Charity Commission Annual Returns Regulations 2024

The Charities (Annual Return) Regulations 2024 were made on 20 December 2024 and apply to all registered charities required to file with the Charity Commission with an accounting year ending on 1 January 2025 or after.

Protect your charity from cyber crime

The Charity Commission released in November 2024 guidance around protecting your charity from cyber crime, how to keep your charity cyber secure, respond to cyber attacks, and report cyber crime.

Charity trustee welcome pack

In October 2024, the Charity Commission updated its Charity trustee welcome pack. As a new charity trustee, the guide will help you in your role. It can also be used by existing trustees to refresh knowledge and skills.

A full list of the Charity Commission news and communications obtained from here.  

Financial reporting update

Updates to FRS 102 and the Charities SORP

In March 2024, the FRC issued the FRS 102 periodic review including finalised amendments. The changes will affect all entities applying FRS 102 and not solely charities.  Highlights include:

  • Changes to the requirements around revenue arising from exchange transactions which are akin to those included in IFRS 15
  • Adopting a version of IFRS 16 which will bring all leases except those of low value/short life onto the balance sheet

The effective date for the amendments is accounting periods beginning on or after 1 January 2026. 

As a consequence of this, the next edition of the Charities Statement of Recommended Practice (SORP), taking account of the final changes to FRS 102, is being developed. The new SORP will be subject to a 3-month consultation period which is anticipated to go live in March 2025. It is likely that the new SORP will be published no later than Autumn 2025 for an effective date of 1 January 2026. More information can be found here.

International Non-Profit Accounting Guidance (“INPAG”)

IFR4NPO is a 5-year project to develop an internationally applicable financial reporting guidance for non-profit organisations, to be known as INPAG. Whilst it will be the decision of the regulatory bodies in each jurisdiction whether to mandate adoption of the standards, their adoption across the world aims to improve the clarity and consistency of financial reports, resulting in greater credibility and trust in the not-for-profit sector globally. More information can be found here.

Exposure drafts have been issued in 2022 to 2024 and the final standard is due to be published in the second half of 2025.

The new accounting standards are being developed based on the IFRS for SMEs, with specific guidance being incorporated to reflect NPO specific issues and stakeholder needs. There is currently no intention for the Charity Commission to mandate the adoption of INPAG in the UK. 

Scottish charities

This section details changes and current developments specifically impacting charities (including cross border charities) in Scotland.

Regulation – OSCR

OSCR has been working on achieving its mission to regulate in a way which builds trust and confidence in Scottish charities, holds charities to account and strengthens their ability to positively contribute to society.

Their recent work includes:

Record of Removed Persons

OSCR’s website now has a publicly searchable record of people removed from being concerned in the management and control of a charity. You can search the record here: OSCR | Record of Removed Persons to carry out due diligence on prospective new Trustees.

Trustee Induction

OSCR have shared some information on induction of new Trustees after responses to the new online Annual Return indicated this is an area of challenge. OSCR | Trustee induction: Getting it right for Scottish charities

Revitalising Trusts Project

Up to the end of 2024, £5million, from over 300 dormant trusts, has been ‘unlocked’ from lost or forgotten charitable accounts. Funds have been reopened, repurposed or wound up, releasing funds for public good.

Sector Overview

OSCR’s sector overview report provides an understanding of what the Scottish charity sector is made up of, what it looks like and what issues are influencing and challenging charities. The new report is now a quarterly interactive report that allows you to filter some of the data to get to the information you would like to see. You can access the interactive sector overview report here: OSCR | Sector Overview

Finally, OSCR retains a plethora useful guidance and publications on their website. Did you also know that OSCR has a YouTube channel? This can found here OSCR YouTube Channel and includes lots of useful videos, presentations and webinars. OSCR has also recently set up a WhatsApp! Channel where you can get the lates news, updates and information for charities in Scotland sent straight to your phone. Join the channel here: OSCR Channel | Whatsapp.

Legislation Updates

Changes to Scottish Charity Law

The Charities (Regulation and Administration) (Scotland) Act 2023 came into effect on 1 April 2024 and enhances OSCR’s regulatory powers and helps to increase accountability and transparency in Scotland’s 25,000 charities.

Changes already in effect relate to removing charities, increasing OSCR’s inquiry powers and connection to Scotland.

The changes that come into effect in Summer 2025 relate to the publishing of more information such as Trustee information published on the public Scottish Charity register (names only), annual accounts and charities that have merged and disqualification of Trustees and senior managers.

Other Useful Guidance

The Scottish Governance Code for the Third Sector can be found here. You can also view SCVO’s Good Governance Check-up document here which can be used in conjunction with the Code.

Seminars and publications

RSM Charity events

RSM hold regular seminars, training and events at our offices around the UK. More information on our latest events can be found here.

RSM Publications

RSM regularly updates its Charity Trustees Insights Hub which provides valuable insights into key challenges and developments within the charity sector. More information can be found here.  

Nick Sladden
Nick  Sladden
Partner, Head of Charities and Independent Schools
Nick Sladden
Nick  Sladden
Partner, Head of Charities and Independent Schools