In this article, we’re looking at some of the regulatory updates from March, including OSCR guidance, HMRC’s consultation on VAT energy saving materials relief, and the Charity Commission’s advice on campaigning on refugee issues.
1. The Scottish charity regulator OSCR shares tips on improving your charity’s annual reports and accounts
Following a review of 90 charity accounts submitted to OSCR, the Scottish charity regulator identified four main issues:
- Failing to include a Trustees’ Annual Report completely, or providing inadequate information so this report does not meet the legal requirements
- Failing to ensure that the accounts are subject to the appropriate external scrutiny and independent review of the financial information
- Not providing comparative information as prior year information was missing, either completely or partially, in the accounts
- Failing to provide the required notes to accompany the financial statements. Notes are important as they help to provide context and understanding by supplementing the information in the accounts.
The full finding of this research can be found in the report:
2. HMRC call for evidence: VAT energy saving materials relief – improving energy efficiency and reducing carbon emissions
In the Spring Budget, the government announced a consultation on the VAT relief for energy-saving materials. The call for evidence seeks views on the inclusion of additional technologies that meet the government’s objectives for the relief. It also seeks views on whether the relief should be re-introduced for installations of energy saving materials in buildings intended solely for a relevant charitable purpose.
To read ICAEW’s article on the consultation, please visit:
To respond to the consultation, click here.
3. Charity Commission Chair’s blog on how charities can model a better kind of discourse on the migration and refugee crisis
Charity Commission Chair, Orlando Fraser KC, published a blog post to encourage charities to model a better kind of discourse on migration and refugees. He acknowledged the legal right of charities to campaign in furtherance of their purposes and the long and proud history of charities in speaking truth to power on behalf of those in need. However, he also reminded charity leaders to keep the cause at the heart of campaigning decisions and urged them to avoid inflammatory rhetoric that may undermine public trust in the sector. Fraser warned that combative responses to government proposals risk hardening the attitudes against their causes and added “I will not tire of calling on charity leaders to use their voice with kindness, respect and tolerance – and with the wisdom that to win people over, they need to walk towards them, not push them away.”
However, legal experts in the sector have warned charities of the reputational impact of not speaking up if government proposals would harm their beneficiaries. Simon Steeden, Partner at Bates Wells, wrote in his response to Fraser’s blog that stakeholders and supporters of refugee charities will expect them to “use their expertise, credibility, and voice to speak up loudly and be heard.”
The Charity Commission guidance on campaigning and political activity gives advice on campaign materials, acknowledging that many charities, by the nature of their work and the issues they deal with, will raise issues which some people find emotive. “Such charities’ campaign materials will frequently have an emotive content, and this is perfectly acceptable so long as it has a well-founded evidence base and is factually accurate.”
4. OSCR’s approach to investigations
OSCR published its approach to concerns about charities registered in Scotland. Between April and December 2022, OSCR received 454 concerns about charities, of which 153 resulted in an inquiry being opened.
These inquiries are carried out to help charities and their trustees comply with their legal responsibilities under charity law and, in some instances, to protect charitable assets.
The approach will vary depending on the complexity of cases and can range from working with the charity to deal with the issues to seeking specialist input on certain issues.
The full article can be found here.
For other OSCR guidance and news, click here.