Tag: Charity Commission

  • PRESS RELEASE : Church of England charity must rapidly accelerate safeguarding reforms [November 2025]

    PRESS RELEASE : Church of England charity must rapidly accelerate safeguarding reforms [November 2025]

    The press release issued by the Charity Commission on 14 November 2025.

    The Archbishops’ Council of the Church of England must rapidly accelerate the delivery of safeguarding improvements and close gaps in its approach to handling complaints, the charity regulator has warned.

    The Charity Commission has set an expectation that the Archbishops’ Council should implement independent safeguarding structures as endorsed by the Church’s General Synod in February 2025 within 18 months from now – a year sooner than current plans indicate – and in the meantime, put robust interim measures in place to keep people safe.

    The expectation is part of a Regulatory Action Plan issued to the Archbishops’ Council, a registered charity whose objects are to co-ordinate, promote, aid and further the work and mission of the Church of England. It follows the Commission engaging with the charity over whether its trustees are taking sufficient steps to address the safeguarding concerns and implement recommended changes raised in a number of safeguarding reviews.

    Background

    The Commission’s engagement with the Archbishops’ Council began towards the end of 2024, following the publication of an ‘Independent Learning Lessons Review’ into the case of John Smyth (the “Makin Review”). This followed other independent reviews in recent years, including the report by Sarah Wilkinson into the Church’s Independent Safeguarding Board, and the ‘Future of Church Safeguarding’ report by Professor Alexis Jay.

    Public debate about the Church’s approach to safeguarding following publication of the Makin Review – and the Archbishop of Canterbury’s resignation over the issue – exacerbated regulatory concerns that progress towards safeguarding improvements identified in the various independent reports was not happening with sufficient pace.

    The regulatory compliance case was informed by information provided by bishops and Diocesan Boards of Finance, as well as the Archbishops’ Council, at the Commission’s request.

    While the Commission does not investigate individual allegations of abuse, it does have a responsibility to assess concerns about the extent to which trustees are taking necessary action and ensuring their charity has appropriate safeguarding policies and procedures in place. The Church of England’s National Safeguarding Team is a department of the Archbishops’ Council and develops proposals for safeguarding guidance, processes and procedures for consideration by the General Synod which the trustees of other Church charities are required to follow.

    Findings

    In summary, the Commission has found that:

    • there is insufficient urgency and pace in implementing responses to past safeguarding reviews, and the current approach to doing so is fragmented and overly complex. For example, the Council’s current timescale of 2028 to pass the necessary legislation to implement independent safeguarding is too slow, representing a four year gap since the publication of the Jay Review
    • currently the Church does not treat allegations of abuse from an adult not assessed to be “vulnerable” as a safeguarding allegation. The Commission’s guidance is clear that trustees must take reasonable steps to protect from harm all people who come into contact with their charity

    Conclusions

    The Commission found no evidence of mismanagement or misconduct by the trustees of the Archbishops’ Council, and recognises that the charity has made progress and delivered some improvements to the Church’s safeguarding in recent years. However, the Commission has made it clear that it expects the Archbishops’ Council to take all steps within its powers to implement outstanding safeguarding reforms at a much faster pace.

    Where legislative changes will not address safeguarding risks quickly, the charity’s trustees should facilitate interim arrangements sufficient to address identified safeguarding risks until the legislative changes are in place. These should reflect the Commission’s guidance to trustees as well as Church policy and procedure.

    Next steps

    The Commission has issued a Regulatory Action Plan setting out steps the trustees need to take to address the Commission’s concerns. These include closing the gap on how allegations made by a non-vulnerable adult should be handled in different circumstances, and quicker delivery of the new structures for independent safeguarding which the General Synod “endorsed as the way forward in the short term” in February 2025.

    The Commission notes the recent appointment of Dame Christine Ryan as executive chair of the Church’s Safeguarding Structures Programme Board to lead work on the structural changes agreed by the Synod.

    The Commission now expects the Archbishops’ Council to identify any safeguarding risks that may require interim non-legislative measures to keep people safe and to put suitable measures in place. Reflecting this approach, the Archbishops’ Council has told the Commission it plans to establish an interim independent scrutiny body for Church safeguarding ahead of legislation.

    The Commission understands the risks associated with acting in undue haste, and notes that the Archbishops’ Council’s trustees need to consider how to plan for future engagement with victims and survivors in a meaningful, sensitive and structured way so that it supports the timely delivery of change needed to keep people safe in the future.

    The regulator is monitoring the Archbishops’ Council’s progress against the Regulatory Action Plan. Should it receive evidence that raises new regulatory concerns, it will assess this in line with its usual process.

    Charity Commission Chief Executive, David Holdsworth, said:

    It’s time for the Archbishops’ Council and the Church of England to move from review to reform, and from debate to delivery.

    Everyone recognises that improving safeguarding is an ongoing journey, but in the Archbishops’ Council’s case the progress on that journey must be made in bigger, bolder steps, informed by the experience of victims and survivors.

    The Commission will monitor the charity’s progress against our Regulatory Action Plan, and reserve all regulatory options for the future if sufficient progress is not made at pace.

    Ends

    Notes to Editors

    1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its role in safeguarding matters is set out in this policy document.
    2. The Archbishops’ Council is a registered charity (1074857) established in 1999 to co-ordinate, promote, aid and further the work and mission of the Church of England. It does this by providing national support to the Church in dioceses and locally, working closely with the House of Bishops and other bodies of the Church. The Archbishops’ Council is one of the seven National Church Institutions.
    3. The Commission’s safeguarding guidance sets out the steps trustees should take to protect people who come into contact with their charity from abuse or mistreatment.
  • PRESS RELEASE : Charity, Islamic Human Rights Commission Trust, investigated over funding of non-charitable company [October 2025]

    PRESS RELEASE : Charity, Islamic Human Rights Commission Trust, investigated over funding of non-charitable company [October 2025]

    The press release issued by the Charity Commission on 28 October 2025.

    The Charity Commission is escalating its engagement with the Islamic Human Rights Commission Trust to a statutory inquiry.

    The regulator has been engaging with the charity since May 2025 over concerns about its involvement in publications made and events organised by a non-charitable company which receives funding from Islamic Human Rights Commission Trust.

    Complaints were also received in relation to the charity’s funding of an event where it is alleged that inflammatory statements were made. The Commission is investigating whether support of the event was in furtherance of the charity’s objects.

    The Commission required the trustees to answer a range of questions to understand the charity’s involvement in these matters, and its wider relationship with the non-charitable company. After reviewing the trustees’ responses, notably in relation to the event, the regulator decided to launch a statutory inquiry to further investigate the regulatory concerns.

    The inquiry will examine the trustees’ administration, management and governance of the charity and their compliance with legal duties and responsibilities. It will also review:

    1. Islamic Human Rights Commission Trust’s activities, considering how these further the charity’s purposes and are in the charity’s best interests
    2. The relationship between the charity and the non-charitable company, including:
    • how this relationship benefits the charity and helps deliver on its purposes
    • how the trustees are managing this relationship in the charity’s best interests
    • what safeguards are in place to ensure the charity is adequately separate from the non-charitable company
    • the steps the trustees have taken to separate the charity from the non-charitable company so that it is clear to the public that the two organisations are separate entities

    The Commission may extend the scope of the inquiry if additional regulatory issues emerge.  The regulator has previously issued an Official Warning to the charity on 28 March 2023 in part about how it managed its relationship with the non-charitable company. The decision to escalate its case to an inquiry reflects the seriousness of the Commission’s concerns about the impact the unclear relationship between the charity and non-charitable company may have on public trust and confidence in the charity and charities more widely.

    It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing the issues examined, any action taken, and the inquiry’s outcomes.

    ENDS

    Notes to editors

    1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. Read further information about what the Commission does.
    2. On 8 October 2025 the Charity Commission opened a statutory inquiry into Islamic Human Rights Commission Trust under section 46 of the Charities Act 2011 as a result of its regulatory concerns that there is or has been misconduct and / or mismanagement in the administration of the charity.
    3. Allegations of criminal offences are for the Police to investigate.
    4. The Home Office is responsible for decisions on proscription on behalf of the UK Government.
    5. The Commission publishes a range of guidance for trustees, including: Conflicts of interest and on Charities and terrorism.
  • PRESS RELEASE : Regulator finds serious financial mismanagement at charity, Mountain of Fire and Miracles Ministries International, which had more than 100 bank accounts [October 2025]

    PRESS RELEASE : Regulator finds serious financial mismanagement at charity, Mountain of Fire and Miracles Ministries International, which had more than 100 bank accounts [October 2025]

    The press release issued by the Charity Commission on 20 October 2025.

    Former and current trustees at Mountain of Fire and Miracles Ministries International lacked oversight and control over charitable funds, a Charity Commission inquiry has found.

    The charity operates through a large network of individual branches and works to promote Christianity. 

    The Commission opened an inquiry after financial concerns were identified, including the alleged misappropriation of charity funds. 

    Key findings  

    The inquiry found that the charity’s trustees could not demonstrate that they had adequate oversight or control over more than 100 bank accounts operated by individual branches of the charity, with charity money at risk across the organisation’s extensive network. 

    As a result of serious concerns regarding the trustees’ ability to carry out their duties effectively, the Commission appointed an interim manager in 2019 to work alongside the remaining trustees to implement essential financial controls.  

    Many of the charity’s financial issues stemmed from its complex structure, which had grown from a handful of branches to over 90 locations nationwide, without the corresponding governance improvements.  

    Branches operated autonomously, opening bank accounts without central oversight and failing to report income in a timely manner. This created substantial risks to charitable funds and resulted in inaccurate financial reporting. 

    Additionally, branch offices were making significant financial decisions, including property purchases and lease agreements, without trustee knowledge or authorisation. 

    This lack of oversight by trustees led to financial losses for the charity – for example, some branches occupied property without first obtaining the necessary planning permission and one of which was subject to costly legal action by a council. Further losses arose because of the former and current trustees’ failure to regularise employment contracts which resulted in payments to settle employment disputes.  

    Regulatory action 

    As a result of its findings, the Commission took action to freeze the charity’s assets to prevent further loss. 

    An interim manager was appointed to implement robust financial controls at the charity and to improve its governance.  

    The interim manager was discharged in September 2024. The interim manager appointment was lengthy due to the complexity of the reform needed at the charity and the delays caused by legal proceedings. 

    Following the completion of this work, the Commission issued an order directing the charity to follow a regulatory action plan concerning governance and policy changes. The Commission is now satisfied that the trustees have complied with the action plan.   

    Amy Spiller, Head of Investigations at the Charity Commission said: 

    The rapid growth of a charity comes with correspondingly larger potential risks, as our inquiry clearly shows. 

    In this case, the trustees’ fundamental failure to maintain financial controls meant donor funds were at serious risk across their entire network. 

    Following the intervention of the Commission and the interim manager, the trustees were better able to implement essential reforms, meaning the charity can now operate effectively and focus on delivering its charitable objects.

  • PRESS RELEASE : Charity Commission Statement on the Heaton Park Synagogue [October 2025]

    PRESS RELEASE : Charity Commission Statement on the Heaton Park Synagogue [October 2025]

    The press release issued by the Charity Commission on 2 October 2025.

    Charity Commission Chief Executive, David Holdsworth, said:

    Our thoughts are with those directly affected, and the wider Jewish community, after this abhorrent attack on a holy day. This attack is all the more abhorrent as it targeted people of faith and those serving in a charity simply for attending their place of worship. Violence and hatred have no place in our communities and society. Violence can never be justified and can never be excused.

    Charities are at the heart of communities across the country improving millions of lives daily. We as the regulator will robustly defend their right to do so and stand ready to support charities as they do what they do best – bring communities together, protect society’s most vulnerable and work to make our country and world a better place.

  • PRESS RELEASE : Regulator opens next phase of investigation into 105 charities connected to company cashing cheques [September 2025]

    PRESS RELEASE : Regulator opens next phase of investigation into 105 charities connected to company cashing cheques [September 2025]

    The press release issued by the Charity Commission on 1 September 2025.

    The Charity Commission has announced the next 10 charities entering a class inquiry it opened in May 2025.

    Earlier this year, the Charity Commission for England and Wales announced a statutory class inquiry into a group of charities where there is evidence that they have issued cheques which were then exchanged for cash.

    Following an unannounced visit by HMRC to a company in Hackney, 105 charities were found to have cashed cheques with it to a value of £22 million between December 2021 and March 2023.

    In May 2025 the Commission announced the inquiry and the details of first 10 charities entered into it.

    The Commission has now extended this inquiry to include the following 10 charities:

    Using powers available to the Commission during an inquiry, the regulator will determine the facts around how these charities have transferred funds. It will also investigate how trustees had oversight of what happened to funds exchanged for the cheques, and if this cash has been used properly to support what the charities were set up to do. The Commission will seek to establish how trustees determined that these financial transactions were in their charity’s best interests.

    The regulator has issued an immediate order to temporarily stop any of the charities under inquiry from issuing cheques without its prior consent.

    The scope of the inquiry may also be extended if additional regulatory issues emerge during the Commission’s investigation.

    Notes to editors:

    1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. Find out more: About us – The Charity Commission – GOV.UK
    2. A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity, or class of charities and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation. An inquiry will investigate and establish the facts of the case so that the Commission can determine the extent of any misconduct and/or mismanagement; the extent of the risk to the charity, its work, property, beneficiaries, employees or volunteers; and decide what action is needed to resolve the concerns.
    3. The Commission published a press release on gov.uk to announce the first tranche of charities which entered the class inquiry.
    4. The latest charities entered the inquiry in July and August 2025.
  • PRESS RELEASE : Regulator to investigate Sikh charities after failure to comply with Orders [August 2025]

    PRESS RELEASE : Regulator to investigate Sikh charities after failure to comply with Orders [August 2025]

    The press release issued by the Charity Commission on 28 August 2025.

    The Charity Commission has opened a statutory inquiry into two charities connected to the Guru Nanak Gurdwara, Wednesfield, which were set up for the advancement of the Sikh religion in the area.

    Unregistered charity Guru Nanak Gurdwara (also known as the Nanak Sikh Temple, amongst other names) was established in 1980, while the Guru Nanak Gurdwara, Wednesfield was registered with the Charity Commission as a Charitable Incorporated Organisation (CIO) in 2024.

    The Commission had previously opened a regulatory compliance case due to concerns raised by some of the Gurdwara’s congregation about the trustees’ oversight of the established, unregistered charity. Further concerns were raised by the formation and registration of a new CIO by some of those trustees.

    Trustees of both charities have failed to comply with regulatory guidance and with information gathering Orders of the Commission related to these concerns.

    The unregistered charity failed to comply with the Commission’s Order for it to apply to become a registered charity, as required by law, by 23 April 2025. However, it has since submitted a registration application to the Commission.

    A failure to comply with an Order of the Charity Commission is misconduct and / or mismanagement in the administration of a charity.

    The Commission escalated its engagement with both the CIO and the related, unregistered charity to a statutory inquiry in June 2025.

    The inquiry will examine if the trustees are complying with their legal duties and responsibilities in respect of the administration, governance, and management of both charities with particular regard to:

    • the conduct of the trustees and whether the charities are being managed in accordance with their governing documents
    • whether there are appropriate controls in place to ensure the charities’ assets are protected
    • the extent to which the trustees have complied with previously issued regulatory guidance and orders
    • if there has been any misconduct and/or mismanagement by the trustees in the administration of the charities.

    The Commission may extend the scope of the inquiry if additional regulatory issues emerge.

    ENDS

    Notes for Editors

    1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society.
    2. On 20 June 2025, the Charity Commission opened a statutory inquiry into both the CIO and the related unregistered charity, Guru Nanak Gurdwara, also known as the Nanak Sikh Temple, amongst other names.
    3. The unregistered charity submitted a registration application to the Commission on 1 August 2025.
    4. Under section 46 of the Charities Act 2011 a statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation. An inquiry will investigate and establish the facts of the case so that the Commission can determine the extent of any misconduct and/or mismanagement; the extent of the risk to the charity, its work, property, beneficiaries, employees or volunteers; and decide what action is needed to resolve the concerns.
    5. Failure to comply with an Order of the Commission is misconduct and / or mismanagement in the administration of a charity in accordance with section 76(1) of the Charities Act 2011.
  • PRESS RELEASE : Investigation opened into charity over trustees’ failure to resolve land dispute [August 2025]

    PRESS RELEASE : Investigation opened into charity over trustees’ failure to resolve land dispute [August 2025]

    The press release issued by the Charity Commission on 20 August 2025.

    The Charity Commission has opened a statutory inquiry into Darul-Uloom School London.

    Darul-Uloom School London was registered with the Commission in 1995 and operates a school providing Islamic and national curriculum education to children and young people.

    The regulator previously opened a separate statutory inquiry into the charity in 2018 after an altercation on the charity’s premises. That inquiry concluded in May 2022 and found serious mismanagement and misconduct in the administration of the charity. Two former trustees were disqualified.

    During the course of that inquiry, the Commission became aware that one of the disqualified former trustees had made representations to the charity’s trustees asserting ownership of the land on which the school is based.

    Following its enquiries, the Commission’s view is that there is evidence which shows that the land is held on trust by the charity, rather than being the personal property of any individual and has shared this view with both the charity’s trustees and the disqualified trustee.

    However, despite the repeated deadlines given by the Commission for the trustees to resolve the issue, the trustees have failed to bring the matter of the land dispute to a conclusion. The regulator is concerned that these failures place the charity’s property at serious risk.

    As a result, the Commission has escalated its engagement to a statutory inquiry.

    The inquiry will evaluate the trustees’ administration, management, and governance of the charity. In particular, it will consider the conduct of the trustees and their compliance with legal duties and responsibilities as it relates to the land dispute.

    The Commission may extend the scope of the inquiry if additional regulatory issues emerge.

  • PRESS RELEASE : Regulator to investigate Christian charity after almost £300k appears unaccounted for [August 2025]

    PRESS RELEASE : Regulator to investigate Christian charity after almost £300k appears unaccounted for [August 2025]

    The press release issued by the Charity Commission on 7 August 2025.

    The Charity Commission has launched a statutory inquiry into Edmund Kell Unitarian Church and Elizabeth Kell Community Hall over financial and safeguarding concerns.

    The charity, which serves the local community of Southampton, is an excepted charity meaning that it does not require registration with the Commission. As such, it is not listed on the Register of Charities.

    The regulator started engaging with the charity in April 2025 after receiving an application from its trustees to change the charity’s structure. During this process, the regulator identified concerns around the charity’s governance and administration.

    Following these concerns, the Commission conducted a review of the charity’s accounts and obtained information on its investment portfolio. This raised concerns that funds initially estimated as in the region of £290,000 may be unaccounted for. As a result, the regulator has now escalated its engagement to an inquiry which will seek to determine how these funds were used.

    In addition, the Commission has regulatory concerns in relation to safeguarding at the charity and potentially unmanaged risks relating to a connected individual.

    The inquiry will examine:

    1. The trustees’ governance and management of the charity and the extent to which they have fulfilled their legal duties and responsibilities.
    2. The extent to which the trustees have exercised adequate control and oversight over the charity’s financial management, including whether there has been any loss or misappropriation of the charity’s funds.
    3. The sufficiency of the charity’s safeguarding arrangements.

    The Commission may extend the scope of the inquiry if additional regulatory issues emerge.

    It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing the issues examined, any action taken, and the inquiry’s outcomes.

    ENDS

    Notes to editors:

    1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. Read further information about what the Commission does on gov.uk.
    2. On 29 April 2025, the Charity Commission opened a statutory inquiry into the charity under section 46 of the Charities Act 2011 (“the Act”) as a result of its regulatory concerns that there is or has been misconduct and/ or mismanagement in the administration of the charity.
    3. A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation.
    4. Some charities are ‘excepted’ from charity registration. Apart from not having to register or make annual returns, excepted charities must comply with charity law. Their trustees have the same responsibilities as trustees of any other charity. The Charity Commission regulates them just like registered charities and can use any of its powers if it needs to. An ‘excepted’ charity is different to ‘exempt’ charities, which are exempt from registration and regulation by the Commission. More information is available on gov.uk.
  • PRESS RELEASE : Regulator highly critical of charity that shared video supporting Hamas [July 2025]

    PRESS RELEASE : Regulator highly critical of charity that shared video supporting Hamas [July 2025]

    The press release issued by the Charity Commission on 11 July 2025.

    The Charity Commission has found misconduct and / or mismanagement by trustees in the administration of the Al-Manar Centre Trust and issued the charity with an Order requiring it to take action on its social media use.

    The charity, which operates a mosque in Cardiff, has objects that include advancing Islamic education, and fostering community relationships and religious harmony.

    In January 2024, the Charity Commission became aware of a video shared on the charity’s social media account in November 2023. The video contained content that, in the Commission’s view, could be understood as demonstrating support for the proscribed terrorist organisation Hamas.

    In February 2024, the regulator launched a statutory inquiry into the charity. The inquiry examined the charity’s social media and website controls, as well as the circumstances surrounding the posting of the video.

    Findings

    The inquiry was told that the charity’s chair, who was the only trustee responsible for managing the charity’s social media content, posted the video after only listening to its audio. The chair believed that the audio aligned with the charity’s objectives, without reviewing the visual content.

    In the inquiry’s view, the video – which was not produced by or for the charity – contains content that presents a positive image of Hamas and its October 2023 terrorist attack on Israel. It also attempts to downplay or justify the attack.

    Consequently, the inquiry concluded that the video was likely to lead an ordinary member of the public to infer that the charity was supportive of and/ or glorified terrorism.

    The inquiry found that the chair’s decision to rely solely on the audio was wholly inadequate. Furthermore, and in the inquiry’s view, even reviewing just the audio, the chair should have recognised from the narration that its content could be interpreted as supporting Hamas’ actions.

    There were also failings by trustees, at the time the video was posted, to undertake adequate diligence and monitoring of online content posted by the charity. The inquiry found that the video did not further the charity’s objects for the public benefit.

    Despite receiving regulatory advice in 2014 on protecting the charity from extremist abuse, the Commission found that the trustees had failed to implement adequate social media controls. At the time of the incident, the charity’s social media policy consisted solely of a basic flowchart and lacked meaningful guidance or oversight mechanisms.

    As a result of the trustees’ misconduct and / or mismanagement regarding the posting of the video and lack of adequate social media controls, the Commission issued an Official Warning to the charity.

    Additionally, in October 2024, the Commission made an Order directing the trustees to take actions on the charity’s use of its website and social media, which included a review of all material on its website and social media platforms.

    The trustees complied fully with the Order.

    Joshua Farbridge, Head of Compliance Visits and Inspections at the Charity Commission, said:

    A charity’s reputation can be severely damaged in an instant through reckless use of social media.

    Our inquiry concluded that the conduct of the trustees fell below the standards expected of them. Inadequate controls over social media led to the sharing of harmful content, and there is no excuse for failing to properly review content before it is shared by a charity.

    Our swift intervention, which included an Official Warning and a legal Order requiring specific action to be taken, underscores the Commission’s firm commitment to ensuring charities are not misused in supporting or glorifying terrorism.

    The full inquiry report can be found on gov.uk.

  • PRESS RELEASE : New data points to growing social and economic impact of charity sector amidst challenging financial environment [July 2025]

    PRESS RELEASE : New data points to growing social and economic impact of charity sector amidst challenging financial environment [July 2025]

    The press release issued by the Charity Commission on 10 July 2025.

    New insights from sector data suggest that charities have been able to direct additional resources to delivering their aims, amidst a tightening financial squeeze.

    The Charity Commission, the regulator of charities in England and Wales, has analysed data drawn from annual returns for the financial year ending 2023 – the most comprehensive dataset available to the charity sector.

    Collectively charities that submitted annual returns spent £95.73 billion delivering their charitable aims in 2023, 9.6% more than in 2022, reflecting a further broadening and deepening of the vital societal impact of charities. This was during a period when cost of living pressures were being felt acutely within society.

    This impact is underpinned by the generosity of the public, with donations and legacies reaching £31.4bn – almost a third (32.6%) of all charity income. Small charities, which are by far the greatest in number, largely rely on this income.

    Businesses also made a considerable contribution to charity with almost half (49.7%) of charities with an income of £100k or more reporting donations from a corporate donor.

    The data underlines that volunteers are essential to delivering public good, outnumbering paid workers by a factor of more than 3:1. Around 7 in 10 charities reported they were supported by volunteers in 2023, while 5 in 10 had paid workers (permanent or fixed-term employees and self-employed). The majority of paid workers (98%) were deployed in the UK.

    However, for a second year in a row, the analysis drew out some indicators underlining concerns about financial resilience in parts of the sector.

    Overall growth in expenditure (9.6%) outpaced growth in income (6.8%) leaving the gap between the two at its narrowest in five years at £0.7bn, down from £2.9bn in 2022.

    While more than half of charities (55.1%) have more income than expenditure, around 2 in 5 charities (42.6%) had expenditure that exceeded income. This situation leaves many charities with little or no headroom for investing in longer term or more innovative projects, and depending on reserve levels, a continuation of this trend may mean some charities cease to operate altogether.

    The data follows the Commission’s release of separate data earlier this week pointing to increased demand for charities’ services, with 9% of people indicating they had received food, medical or financial support from charities, compared to just 3% five years ago.

    Charity Commission Chief Executive, David Holdsworth, said:

    Our analysis of charities’ annual returns for 2023 shows the sector is not just delivering life-changing impact across communities but that it is an economic powerhouse for the economy, spending almost £96 billion a year on delivering charitable purposes.

    Charities’ work with those from some of our most marginalised and disadvantaged communities unlocks potential, enabling more people to play an active role in society, helping people up, not handing out. This vital work is happening right across England and Wales, often in places and with people the state cannot easily reach.

    While our data shows the cost of living crisis has applied significant pressure on charity finances – with the narrowest gap between income and expenditure in recent years – it also shows charities rising to the challenge, spending almost ten per cent more in 2023 than in 2022 to meet increased need.

    Each question asked of charities in the annual return is designed to enable the Commission to identify risks and trends in the sector; to help the public make informed and confident choices about charities; and to allow policy-makers, researchers, sector groups and the public to gain a richer understanding of the charity sector in England and Wales.

    ENDS

    Notes to editors

    1. The annual return 2023 represents the most comprehensive data set available on the charity sector, as it is a statutory requirement for charities to provide this to the Commission. The Commission’s analysis of the annual return 2023 is a factual presentation of the data charities have reported to the Commission for 12-month financial periods ending at any point in 2023. Annual Return data is a ‘lagging indicator’ as the information it captures has passed as each charity has up to 10 months to report it after the end of its financial year. AR23 saw an improved number of charities filing returns than in AR22.
    2. All registered charities must provide information annually to the Charity Commission (‘the Commission’). The rules vary according to the charity’s size and structure. Registered charities with:
    • income up to £10,000 should complete the relevant sections (income and expenditure) of the annual return
    • income above £10,000, and all Charitable Incorporated Organisations (‘CIOs’), must prepare and file an annual return
    • income above £25,000, and all CIOs, must also file copies of their trustees’ annual report and accounts