Annual Return Guidance Updated July 2018 Scttish Charity Regulatr
Annual Return Guidance CONTENTS Pg 3. 1. INTRODUCTION Pg 4. 2. SECTION A Pg 8. 3. SECTION B Pg 11. 4. SECTION C
1. Intrductin What this guidance cvers Every year, every charity registered in Sctland must send us: 1. Annual accunts 2. Trustees Annual Reprt 3. External scrutiny reprt, and 4. Online annual return. Charities must submit this infrmatin t us within 9 mnths f their financial year end date. Every charity in Sctland shuld use OSCR Online t submit this infrmatin. Mre infrmatin n ur nline services can be fund n ur FAQs page. This guidance explains what infrmatin we need frm charities as part f their nline annual return. Guidance that explains hw t use OSCR Online can be fund n ur website. Wh is this guidance fr? This guidance is aimed t help thse cmpleting the Annual Return. It explains the questins and cntains infrmatin n hw t answer the questins accurately. It is the respnsibility f all charity trustees t make sure that reprting requirements are met. Page 3
Sectin A - This sectin is t be cmpleted by all charities The initial questins in Sectin A will already be filled in using the infrmatin we hld abut yur charity. This includes the cntact details fr yur charity s principal cntact and the financial year end date f the charity. If yu need t make changes t the cntact details, yu can d s where indicated n the frm. Charity Number Each Scttish charity has a six-digit reference number with the prefix SC fllwed by a zer and then five digits (SC0xxxxx). This number is shwn n the Scttish Charity Register Legal Name The legal name f yur charity is shwn n the Scttish Charity Register. Yu must seek OSCR s cnsent if yu want t change yur charity s name guidance abut this can be fund n ur website at http://www.scr.rg. uk/charities/managing-yurcharity/making-changes-t-yur-charity. If yur charity changes it name and we give ur cnsent, the Legal Name will be updated and a field will appear titled Frmer Legal Name with the frmer name. Principal Office r Trustee address This shws whether the address supplied is the charity s principal ffice address r a charity trustee s address. This infrmatin is shwn n the Scttish Charity Register. The principal ffice address can be yur rganisatin s address, the address f a third party acting n yur behalf, r any ther address which yu chse. Hwever, it must be an address at which yu will be able t deal with all fficial ntices and letters which yu receive frm OSCR. If yu use a PO Bx number, then yu must als prvide the full physical address including the pstcde. If the address given is a charity trustee s address, the charity trustee s name will be shwn n the Scttish Charity Register (fr example Charity Trustee Mrs A Smith ). Page 4
Alternative cntact email Please prvide an alternative email address that we can use t get in tuch with the charity if there are any prblems with the principal cntact s email address. This culd be the email address f anther trustee r a third party acting n yur behalf. Financial year end date This is the date f yur charity s financial year end, smetimes knwn as the year end date r perid end date. This infrmatin is shwn n the Scttish Charity Register. This infrmatin will already be filled in. Changing yur financial year end date will change the date yur annual return and accunts are due (the deadline is 9 mnths fllwing yur year end date). If yu change this date, yu must let us knw within three mnths f that change. Grss Incme This is the ttal incme frm: OR ttal receipts if yur charity prepares receipts and payments accunts the Statement f Financial Activities if yur charity is preparing accrued accunts. Receipt f any dnated asset which legally has t be held within a permanent r expendable endwment fund shuld nt be included. Grss Expenditure This is the ttal expenditure frm: OR ttal payments if yur charity prepares receipts and payments accunts the Statement f Financial Activities if yur charity is preparing accrued accunts. Annual reprts and accunts n a website and a link t published accunts Page 5
If yu publish the accunts n yur charity s wn website answer yes t this questin and insert the direct link when asked. OSCR will include this link t yur accunts infrmatin n yur charity s register entry. It is a great way f yu reaching a wider public, as yu can als include ther infrmatin yu wuld like the public t see n the page that cntains yur accunts. Charitable purpse and activity Yur charity s purpse is stated n the charity s entry n the Scttish Charity Register. In rder t achieve the purpses stated n the Register, des yur charity d any f the things in this list? Please tick all the ptins that apply, and if yur charity des any things nt listed, please describe these in the space prvided under Other. Incme frm investments If yur charity receives incme frm investments fr example stcks, shares r bnds, please chse yes. Fr the purpses f this questin, we d nt include bank interest as investment incme. Ttal Number f Charity Trustees and Paid Staff A charity trustee is a persn having general cntrl r management f the running f a charity. Enter the number f trustees and staff in these questins at the accunting perid end date. Safeguarding Please let us knw if yur charity has children r vulnerable adults as beneficiaries f yur charitable activities. Read ur Safeguarding Guidance fr infrmatin n what yu might need t d depending n yur charitable activities Crss Brder Charities Fr Crss Brder charities, (thse registered with bth OSCR and the Charity Cmmissin fr England and Wales) the Infrmatin Return has been replaced by ne specific additinal Yes/N questin n the nline Page 6
annual return. This questin is abut undertaking activities in Sctland and will nly appear if relevant. Page 7
Sectin B - This sectin is t be cmpleted by charities with incme f 25,000 and mre B.1 Gverning dcument Yur charity may knw its gverning dcument as a cnstitutin, articles, rules r trust deed. Please tell us when the charity trustees last lked at and thught abut the gverning dcument. B.2 Number f charity trustees A Scttish Charitable Incrprated Organisatin (SCIO) must have at least three charity trustees as stated in the SCIO Regulatins. Fr ther legal frms, there is n legal number f charity trustees but it is gd practice t have at least three. Mst charity gverning dcuments (yur charity may knw this dcument as a cnstitutin, articles, rules r trust deed) will set ut a minimum number f charity trustees wh must be present t be able t make decisins fr the charity. B.3 Des yur charity have the fllwing prcedures in place? In the bx belw this questin we list basic financial cntrl prcedures fr charities. They may nt be applicable t every charity, hwever fr many these prcedures will be an imprtant part f managing the charity s finances and fulfilling charity trustee duties. B.4 Payment r benefit t charity trustees Charity trustees are peple invlved in the management and cntrl f a charity, yu may call yurselves a cmmittee, a bard, Directrs r smething less frmal the charity trustees fr the last financial year shuld be listed in yur charity s Trustees Annual Reprt. Page 8
A persn r rganisatin is cnnected t a charity trustee if they fall int ne f the fllwing categries: spuses, civil partners and chabitees f a charity trustee child, stepchild, parent, grandchild, grandparent, brther r sister f a charity trustee (and a spuse f any such persn) an institutin cntrlled by a charity trustee r a persn cnnected with them r tw r mre trustees/cnnected persns when taken tgether a crprate bdy r cmpany in which the charity trustee r a persn cnnected with them has a substantial interest, r a Scttish partnership (business) in which the charity trustee r, a persn cnnected with them, is a partner. Please tell us abut any payment r benefit received by a charity trustee r persn cnnected with a charity trustee. Out f pcket expenses paid t charity trustees, fr instance travel expenses t attend meetings, shuld nt be included in this sectin. B.5 Charity structure A charity is part f a grup if it is: a parent (which wns a subsidiary cmpany) a subsidiary cmpany r a cnnected trading cmpany. Where there is a clse relatinship with an umbrella charity r a number f funds (such as in a Church) this des nt mean a charity is part f a grup. Cnslidated accunts are accunts which cnslidate the results f the grup. If yu are a parent charity and prepare cnslidated accunts these shuld be submitted and used t prepare yur nline annual return. If yu are a subsidiary r cnnected cmpany yu shuld submit yur wn individual accunts. Page 9
B.6 Significant surces f funding Where yur charity has received 20% r mre f its incme frm a persn r rganisatin cnnected t a charity trustee in the last financial year, please prvide the details requested n the frm. Yu can find the definitin f a persn r rganisatin that is cnnected t a charity trustee in B.4. Page 10
Sectin C - This sectin is t be cmpleted by charities with incme f 250,000 and mre Incme breakdwn C.1 Dnatins and legacies This is the vluntary incme f the charity. Where a charity receives a gift fr which there is n expectatin f a benefit it shuld be included here. This categry includes: dnatins and gifts made by individuals r cmpanies legacies mney r prperty left t a charity in a will general grants membership subscriptins and spnsrships where there is n benefit dnated gds, services and facilities and, gift aid. C.2 Charitable Activities This is incme which is received thrugh carrying ut a charitable activity. This will mainly be trading which is within the charity s purpse(s), such as: sales frm a wrkshp whse purpse is t prvide emplyment training, admissin charges received by a heritage charity, r fees charged fr admissin t a play by a theatre grup. Incme which is ancillary t a charity s activities, such as the selling f ice cream by the theatre grup at their play, shuld als be included here. C.3 Other Trading Activities Page 11
This includes incme frm trading activities which are nt within the charitable purpse(s) and incme frm fundraising events. Any incme frm the sale f dnated gds shuld als be included here. C.4 Investments Incme received frm assets held by the charity fr investment purpses. This includes interest received, dividend incme and rental incme n investment prperties. C.5 Other Any items which cannt be classified under the incme headings. Gains n sale f fixed assets will be shwn here. C.6 Ttal Incme This is the ttal incme f the charity fr the perid as shwn in the accunts. Expenditure breakdwn C.7 Raising Funds This is all the mney spent by the charity t generate funds fr its charitable purpses. This includes csts f seeking dnatins, csts assciated with a fundraising event, peratin f charity shps, the peratin f a trading cmpany and advertising csts. C.8 Charitable Activities This is the mney that the charity spends n carrying ut its charitable activities. Charities may carry ut their activities thrugh direct service prvisin, grant prvisin r a cmbinatin f bth. All csts relating t this shuld be included here, including any supprt r Page 12
gvernance csts which relate t the charitable activities. C.9 Other Any items which cannt be classified under the expenditure headings. Generally there shuld be n requirement t use this. C.10 Ttal expenditure This is the ttal expenditure f the charity fr the perid as shwn in the accunts. Other financial infrmatin C.11 Net current assets At this incme level yu are required t prepare fully accrued accunts and this field will nrmally be cash and bank balances plus debtrs plus ther current assets minus liabilities payable within ne year. C.12 Ttal funds At this incme level yu are required t prepare fully accrued accunts and this field will be clear frm the balance sheet. It will nrmally be net current assets plus fixed assets and lng-term investments, less any lng-term liabilities. Page 13
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T 01382 220446 The Scttish Charity Regulatr (OSCR) 2nd Flr Quadrant Huse 9 Riverside Drive Dundee DD14NY E inf@scr.rg.uk @SctCharityReg ScttishCharityRegulatr www.scr.rg.uk This bklet was first published April 2016 and updated n 17 July 2018 due t additinal questins being asked n the nline annual return.