How Do I Prepare for a Charity Commission Review

Introduction

The Charity Commission is the regulator for charities in England and Wales. Its role is to ensure that charities operate legally, responsibly, and for the public benefit. Periodically, the Commission may review a charity’s governance, financial management, or compliance with its duties.

A review is not necessarily a sign of wrongdoing. It may be a routine check, a response to incomplete filings, or part of a sector-wide review. Preparing thoroughly ensures your charity can respond confidently and maintain the trust of the public and regulators.

What is a Charity Commission review

A Charity Commission review is an assessment of how well a charity complies with legal requirements and regulatory expectations. It may cover:

Financial management and accounting records.

Trustee governance and decision-making.

Safeguarding policies and risk management.

Fundraising practices and use of donations.

Compliance with annual reporting and filing deadlines.

The Commission may contact the charity to request documents, conduct interviews with trustees, or arrange an on-site visit. The aim is to ensure that the charity’s operations align with its stated charitable purposes and the law.

Step 1: Understand why the review is happening

The Commission usually explains why your charity has been selected for review. Common reasons include:

Late submission of accounts or annual returns.

Significant changes in financial activity or trustees.

Complaints or concerns raised by the public.

Random selection as part of a wider monitoring programme.

Understanding the context helps you prepare relevant information and address any potential weaknesses early.

Step 2: Review your charity’s governing document

Your governing document (constitution, trust deed, or articles of association) sets out how your charity should operate. Check that:

Trustees are acting within their powers.

The charity’s objectives are still accurate and up to date.

Any amendments have been properly approved and documented.

The rules for meetings, voting, and record keeping are being followed.

Being familiar with your governing document ensures you can explain how your charity complies with its terms.

Step 3: Ensure your financial records are complete and accurate

Financial transparency is central to any Charity Commission review. Before the review begins, make sure your accounts and supporting documents are in order. You should have:

Up-to-date bank statements and reconciliations.

Receipts and invoices for all income and expenditure.

Clear records of restricted and unrestricted funds.

Annual accounts prepared in accordance with the Charities SORP (if applicable).

A copy of your most recent independent examination or audit report.

If your charity has overdue filings, submit them as soon as possible to show you are taking compliance seriously.

Step 4: Review trustee responsibilities

Trustees are legally responsible for ensuring that the charity is well managed and compliant. Before a review, make sure trustees can demonstrate that they:

Understand and follow their legal duties.

Have attended regular meetings with proper minutes recorded.

Monitor financial performance and risk.

Declare and manage any conflicts of interest.

Act collectively in the charity’s best interests.

Trustees should be ready to explain key decisions and show how they align with the charity’s objectives and the public benefit requirement.

Step 5: Update policies and procedures

The Charity Commission will expect your charity to have written policies covering key areas such as:

Safeguarding (for charities working with children or vulnerable adults).

Risk management.

Financial controls and expenses.

Data protection and confidentiality.

Fundraising and donor care.

Volunteer management.

Review each policy to make sure it is current, practical, and properly implemented. Provide evidence of how staff and volunteers are trained on these policies.

Step 6: Check your filings and records with the Charity Commission

Log in to your charity’s account on the Charity Commission website to verify that:

Your annual return and accounts have been submitted on time.

Trustee details are accurate and up to date.

The charity’s contact information is correct.

Any serious incident reports have been submitted where required.

Completing these checks helps avoid administrative issues during the review.

Step 7: Gather evidence of impact and compliance

The Commission wants to see that your charity is making a genuine difference and using funds for its intended purposes. Prepare evidence such as:

Project reports and performance data.

Beneficiary feedback or case studies.

Records of grant conditions and how they have been met.

Internal monitoring reports showing progress against goals.

Clear evidence of impact supports your case that the charity is fulfilling its charitable objectives.

Step 8: Prepare your team

Trustees, staff, and volunteers should know what to expect during a Charity Commission review. Hold a briefing session to:

Explain the purpose and process of the review.

Assign responsibilities for gathering information or answering questions.

Emphasise the importance of honesty, accuracy, and cooperation.

A coordinated approach ensures that everyone presents a consistent and confident response.

Step 9: Communicate openly with the Commission

If the Charity Commission requests information, respond promptly and courteously. Provide clear, accurate answers and include supporting evidence where possible. If you need more time to gather information, explain why and agree on a reasonable deadline.

Good communication builds trust and demonstrates that your charity is proactive and cooperative.

Step 10: Learn from the review

Once the review is complete, the Charity Commission may provide feedback or recommendations. Take these seriously and use them to strengthen your governance and procedures.

Trustees should:

Record the findings in meeting minutes.

Develop an action plan to address any weaknesses.

Set clear deadlines for improvements and assign responsibilities.

Monitor progress regularly and report back to the board.

Treating the review as a learning opportunity can improve your charity’s systems and reduce the risk of future compliance issues.

Common issues identified during reviews

Incomplete or late financial filings.

Weak financial controls or unclear fund management.

Trustees not fully aware of their legal duties.

Outdated safeguarding or risk policies.

Poor record keeping or missing meeting minutes.

Addressing these issues before the review begins helps your charity demonstrate a strong culture of accountability.

Conclusion

Preparing for a Charity Commission review is about organisation, transparency, and good governance. By ensuring your records are accurate, trustees are informed, and policies are up to date, your charity can approach the process with confidence.

A well-prepared charity not only passes a review more smoothly but also strengthens its reputation and internal systems. Treat the review as an opportunity to demonstrate integrity, celebrate achievements, and reinforce public trust in the valuable work your charity does.