We are pleased to see the Charity Commission place emphasis on proportionality in the proposed amendments to the annual return for 2018.
Though it is necessary for the regulator to collect the right amount of data to carry out their regulatory functions and help improve public trust, we recognise that data collection should be targeted and dependent on charity size to reduce the regulatory burden for smaller charities.
It must also be workable: the required information should be meaningful, and charities must realistically be able to collect it. Subject to this we are in favour of collecting more information in the annual return, including around how and where money is raised and spent.
However, in this response we focus on what could be done in the annual return to nudge charities’ behaviour in two areas in particular: greater consideration of the impact charities make, and the diversity of boards.
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