We know that ICAEW members can experience very different turnaround times and approaches for their applications to register as a charity. Whether you are a trustee, a volunteer or representing your client, registering as a charity can sometimes be trickier than expected. This new series of articles from the Charity Commission will outline common application problems, simple solutions and handy hints and tips for getting your charity registered. In this first article, we introduce the Registration Team, who we are, what we do and our role in a charity’s lifecycle.
What does the Registration Team do?
The Registration Division is required, under the Charities Act 2011, to provide a robust registration service ensuring that only organisations which meet the legal tests are registered. To be a registered charity in England and Wales, a charity is an institution which:
- falls under the jurisdiction of the High Courts of England and Wales;
- is established for charitable purposes only; and
- is for the public benefit.
We also investigate organisations where we have concerns that what we are told on registration is different to what is happening in practice, or where an organisation may not be operating or capable of operating as a charity. In doing so, we aim to promote and maintain public trust and confidence in charities via the Commission’s first and fifth general statutory functions; determining whether institutions are charities (“the regulator”) and the maintenance of an accurate and up to date register (“the registrar”). In this way, we feel that we have a similar aim to the ICAEW’s Charity Community – encouraging and supporting the sector by promoting compliance and good governance.
The concept of charitable status is at the heart of the Commission’s work. Our regulatory approach, our values and our strategic plan all emphasise our role in upholding the definition of ‘charity’ in law. The charitable purpose of a registered charity defines the extent and scope of its activities, and so the process of obtaining charitable status is crucial to the future regulation of any charity as well as our ability to advise and guide throughout its lifetime.
Not all charities in England and Wales are registered with the Commission. Around 70,000 charities fall below the threshold for registration (currently set at an annual income of £5,000). 100,000 charities are excepted (including mainstream Christian organisations, scout groups and armed forces charities). A further 10,000 charities are exempt (in that they are overseen by another principal regulator, such as universities).
Who are the Registration Team and what are some of the challenges we face?
The registration team consists of 37 people based in Liverpool and Taunton. We are the Commission’s experts in the assessment of charitable status.
Our main challenge is increasing volumes. The team considers over 8,000 applications annually, with the last financial year being our busiest on record – we received 8,583 applications and considered 878 applications in March alone. On average, between 40 and 45 organisations apply for charity status every working day. Many of these are submitted by accountants.
The average time to register a successful application last year was 47 working days – a figure that we know can be improved. As a general rule of thumb, if the application can be initially assessed as charitable then it will be registered in an average of four working days. If the application requires further information, it will be allocated to a member of the Registration Team for review. This is a longer process as this can encompass complex legal decisions. If we receive insufficient information to further consider the application, it will be returned as quickly as possible as incomplete, with advice on what to do differently next time. If the information provided indicates that the organisation is not or cannot act for exclusively charitable purposes for the public benefit, we will formally refuse registration. On average, 46% of all applications are granted charitable status. The registration process is robust so that the sector and public can have confidence in what it means to have charitable status but all of our decisions (to register and to refuse) are directly appealable to the Tribunal.
What’s next?
This is the first and introductory article in a new series from the Charity Commission designed to help you understand the registration process and why application turnaround times may vary case by case. Looking ahead, we will outline common application problems, simple solutions and handy hints and tips for getting your charity registered.
For further information on the terms and principles raised in this article, the following Commission guidance documents will be helpful:
*The views expressed are the author’s and not ICAEW’s.