A not-for-profit & charities update: Latest sector guidance
Recent updates from the Charity Commission
Guidance for operating in the Middle East:
The Charity Commission released guidance on 24 July 2025 to support charities working in the Middle East. The Commission recognises that the situation in the Middle East is complex and fluid, whilst highlighting the challenges presented with working across multiple jurisdictions.
The guidance covers trustee duties, managing the risk, financial sanctions, terrorism, know your donors, banking, safeguarding, aid convoys and fundraising.
The guidance helpfully cross references other areas of reading, key legislation or other bodies that can support charities.
Raising a concern with the Charity Commission (CC47):
On 9 June 2025, the Charity Commission updated its guidance on raising a concern with them. The revisions make it clearer when to raise concerns about a charity as well as what the Commission can and cannot do as the regulator.
The guidance highlights specific types of serious concerns that may warrant reporting, including:
- Legal breaches that damage a charity’s reputation and public trust
- Serious harm to beneficiaries or others involved in the charity’s work
- Use of the charity for significant private gain
- Charities established for illegal or improper purposes (e.g. tax evasion)
- Major financial losses or asset mismanagement
- Criminal, illegal, or terrorist activity
Along with clarifying the types of concerns that should be raised, the Charity Commission has redesigned their online form to make reporting easier.
Annual return review:
Following the increase to the number of questions in the annual returns in 2023, the Charity Commission has published its report, providing the most comprehensive dataset on charities to date. While based on 2023 data, the report provides valuable insights to inform future planning. Notably, £31.4 billion - nearly a third of total income -came from legacies and donations, a critical figure given current economic pressures and the potential impact of any decline in this income stream.
Fundraising developments to consider
New fundraising guidance:
On 28 July 2025, the Chartered Institute of Fundraising published new guidance to strengthen best practice in relation to face to face fundraising. New points are focused on:
- Subcontracting: there are clear expectations for how charities and agencies should manage outsourced fundraising. Trustees must maintain visibility over who is representing their charity in public fundraising activities.
- Safeguarding fundraisers: the importance of fair working conditions, pay and policies for isolated roles such as door-to-door fundraising.
- Transparent recruitment: clarity of roles and payment structures.
- Due diligence and oversight: Trustees and senior leaders must understand their responsibilities.
The update is the first major revision of face-to-face guidance in the UK since 2016.
Fundraising Regulator – three new guides:
In July 2025, the Fundraising Regulator published three new guides to support with the revised Code which comes into effect on 1 November 2025. The three guides cover:
These are practical guides to support charities and help when planning and delivering fundraising events, online safety and wellbeing, advertising, distinguishing between “in-aid-of” and “on-behalf-of” online gaming fundraising, along with many other areas.
Trustee focus
OSCR trustee information:
From 30 June 2025, the Scottish Charity Regulator (OSCR), now allows trustee information to be submitted through OSCR Online. The move has been made to strengthen transparency in the sector. From 2026 onwards, charities must submit the following details for each charity trustee:
- Full name
- Home address
- Email address
- Telephone number
- Date of birth
- Date of appointment.
While these updates will not be seen until early 2026, the OSCR is encouraging all charities to collate and submit the information online as soon as possible.
See trustee information requirements for further details.
Companies House register:
For those charities that are incorporated (therefore a charitable company), Companies House register currently shows directors details including name, date of birth, registered address and occupation. From 21 July 2025, anyone listed on the register can apply to have the day of their date of birth removed. There is a £30 fee to remove any personal details, read the full guidance on what can be removed and how to action this can be found.
Other points of note
Civil Society Covenant:
Prime Minister Sir Keir Starmer has officially launched the Civil Society Covenant, establishing a new framework for collaboration between civil society organisations and public bodies at both national and local levels.
As part of the launch, the government announced:
- A Joint Civil Society Covenant Council to oversee implementation, bringing together senior officials and civil society leaders
- A Local Partnerships Programme to strengthen relationships between local authorities, public bodies, and civil society
- A developing VCSE–HM Treasury forum for regular dialogue on economic and financial issues affecting the sector
This marks a significant step forward in recognising the role of civil society and ensuring communities are central to decision-making.
CFG – Communicating with your bank:
Following from the Charity Commission guidance on charity banking, which recognised the difficulties charities are facing in this area, the Charity Finance Group (CFG) has issued guidance to help charities communicate with their bank, in particular about how to raise an issue or concern. It covers key areas such as responding to Know Your Customer request s, common challenges and how to raise an issue or complaint.
Royal Voluntary Service volunteering platform for charities:
A new digital platform developed by the Royal Voluntary Service (RVS) is now open for charity registration. Charities of all sizes across the UK can upload volunteering opportunities free of charge ahead of the platform’s public launch this autumn. Once live, potential volunteers will be able to browse causes and roles that match their interests.
ICAEW trustee training:
The ICAEW trustee training modules have been updated for 2025. The refreshed modules now support charity trustees in meeting their Continuing Professional Development (CPD) requirements. The training consists of six core modules covering legal duties, financial responsibilities, board dynamics, risk management, planning for impact, and managing relationships. The self-directed format with video presentations, case studies, reflective activities, and optional assessments, is free to access with an estimated learning time of 4–6 hours depending on experience.
Charity Digital Skills Report 2025:
The Charity Digital Skills Report is an annual barometer of the UK charity sector’s digital capabilities, attitudes, and behaviours. The 2025 edition, co-authored by Zoe Amar and Nisa Ramsay, provides a detailed snapshot of how charities are adapting to digital transformation - especially in the face of economic pressures and rapid technological change.
Key findings focus on the decline in digital strategy, financial barriers remaining a key barrier to digital progression, charities are struggling to adopt artificial intelligence (AI) effectively, and many charities are making decisions without reliable data. More information on charity digital skills.
Tax
UK charity tax relief statistics:
In June 2025, HMRC released statistics on the UK charity tax reliefs. For the tax year ending April 2025, charity tax reliefs (where estimates are available) totalled approximately £6.7 billion - a 5% increase from the previous year.
Key reliefs included:
- £2.75 billion in business rates relief (up 7%)
- £1.7 billion in Gift Aid at the basic rate (up 7%)
- £820 million in Higher Rate Relief on Gift Aid donations (up 8%)
- £980 million in Inheritance Tax relief (up 2%)
Make sure your charity is maximising the charitable tax reliefs available by speaking to your Azets advisers.
HMRC guidance on VAT exemptions for fundraising events:
Following the Upper Tribunal ruling in the Yorkshire Agricultural Society case, HMRC has clarified how VAT applies to income from charity fundraising events.
Charities and qualifying bodies hosting events, such as festivals, dinners, tournaments, or shows, may now benefit from broader VAT exemptions, provided the events are:
- Clearly fundraising in nature
- Run by or for the benefit of the charity
- Held no more than 15 times per year per venue
Charities may also be eligible to reclaim overdeclared VAT on event income from the past four years, which could amount to significant sums (e.g. Yorkshire Agricultural Society reclaimed approx. £200,000).
Going forward, charities should review how events are promoted and structured, ensuring materials clearly highlight their fundraising purpose aligned with the charity’s main aims, even if the event serves multiple purposes.
For support reviewing past event income or assessing eligibility for VAT relief, contact your Azets adviser.
We’re here to help
If you need any support or advice in relation to the latest sector guidance, or need general support, please get in touch with your usual Azets adviser. Alternatively, you can contact our team via the form below.
