In its recent blog post, the Charity Commission shared that, in July 2025, it received over 1,000 registration applications in a single month for the first time. This milestone reveals that the sector continues to grow despite financial pressures. However, we also learned why AI-generated content in applications can result in application rejections.
In the 2024/25 financial year, the Commission processed nearly 10,000 applications, which set a record and constituted a 9% year-on-year increase. The Commission’s Head of Registration, Stuart Wood, revealed that the Commission receives on average nearly 40 applications per working day, successfully registering around 20 new charities, while also removing approximately 16 from the register each day.
There are currently around 170,000 charities on the register in England and Wales, and the Commission reviews each new application carefully to maintain robust and trustworthy registry. In 2024/25, just over half (53%) of the applications received by the Commission were approved. However, Wood also cautioned against relying too much on AI-generated content when completing the application form. He explained that AI-generated responses to questions in the application process are often too generic about the planned aims and activities of the new charity, which can result in an application rejection.
Can new technologies help manage rising application numbers?
It is noteworthy that over 1,000 applications were made in July 2025 – a first in the Commission’s history. It's a clear signal that charitable activity is not diminishing despite financial pressures in the sector. This is likely driven by increasing social needs and enabled by new technologies which allow charitable work to be carried out in innovative, cost-effective ways.
The Commission is actively considering emerging technologies to help with their own processes. This may involve the use of AI tools to support the registration process, but it is critical that public trust is maintained as processes evolve.
Sector perspective: small scale, rising, but rarely merging
Despite rising numbers of registrations, most charities remain very small organisations; around 75% of charities (registered in England and Wales) have an annual income of less than £100k, and mergers remain rare in the sector. This fragmentation may reflect strong motivations from founders who often have a personal connection with the charity’s cause and prefer to launch new entities rather than join established ones.
Yet, from a resource efficiency perspective, more consolidation could be advantageous. Mergers or collaborations can help reduce duplicated administrative burdens, share specialist governance or finance expertise, and free resources for frontline charitable work. For accountants guiding trustees, it may be worth encouraging thoughtful collaboration where mission and culture align.
Your role: accuracy and adherence for swift processing
The Commission continues to emphasise the importance of robust scrutiny to guard against sham applications. Charity registration must meet the three legal requirements:
- That the organisation is established to further one or more of the 13 charitable purposes set down in law.
- That they operate for the public benefit.
- That they fall within the jurisdiction of the High Courts for England and Wales.
Applications that are incomplete or misaligned with guidance may face delays or rejection. As accountants, your role in preparing and reviewing registrations is critical. Completing applications with care and attention to the Charity Commission’s guidance can help ensure they are processed quickly and smoothly. If AI tools are used to help with the application, founders need to review their output carefully to ensure that the Charity Commission’s questions are answered in sufficient detail.
