Regulatory Update
Charity Commission 2025: What's Changed for Grant Applicants
New compliance requirements take effect January 2025. Stronger due diligence standards impact grant applications and funder expectations.
Key Changes Summary
- • Enhanced due diligence: Funders must verify charity status before granting (affects application timelines)
- • Safeguarding mandatory: All charities working with vulnerable groups must have policies on record
- • Financial reporting threshold lowered: Now £100K income (was £250K)
- • Trustee declarations required: Annual fitness declarations for all trustees
- • Serious incident reporting expanded: More scenarios require immediate reporting
Impact on Grant Applications
1. Longer Due Diligence Periods
Funders now required to conduct enhanced checks before awarding grants. Expect:
- Additional 2-4 weeks to decision timelines
- More documentation requests (accounts, policies, governance info)
- Trustee background checks for grants over £100K
2. Safeguarding Non-Negotiable
Working with children, young people, vulnerable adults, or at-risk groups? Must now demonstrate:
- ✓ Written safeguarding policy (uploaded to Charity Commission)
- ✓ DBS checks for relevant staff/volunteers
- ✓ Safeguarding training records
- ✓ Clear reporting procedures
New Compliance Checklist
| Requirement | Who It Affects | Deadline |
|---|---|---|
| Safeguarding policy on file | All charities with vulnerable groups | By 31 March 2025 |
| Enhanced financial reporting | Income £100K+ (was £250K) | From FY 2024/25 |
| Trustee declarations | All registered charities | Annually by 31 Jan |
| Serious incident reporting | All charities | Within 15 days of incident |
What Funders Are Checking
Major funders now routinely verify:
✓ Charity Commission Register Status
Not just registration number but active, compliant status with no regulatory concerns flagged
✓ Recent Accounts Filed
Late filers face additional scrutiny or automatic rejection by some funders
✓ Governance Quality
Active trustee board (minimum 3), recent meetings, proper governance structure
Serious Incident Reporting Expanded
Must now report within 15 days:
- Significant data breaches (not just cyber attacks)
- Safeguarding concerns involving staff/volunteers
- Major financial irregularities (previously higher threshold)
- Regulatory investigations by other bodies
- Whistleblowing allegations
Action Steps for Charities
Immediate Actions (By March 31, 2025):
- 1. Upload safeguarding policy to Charity Commission website (if applicable)
- 2. Complete trustee declarations for all board members
- 3. Review incident reporting procedures—update to reflect expanded criteria
- 4. Check accounts filing status—late filers face grant application challenges
- 5. Update internal due diligence documents—many funders request these proactively
Positive Side Effects
While adding compliance burden, changes benefit well-run organizations:
- Level playing field: Poor governance now harder to hide; quality orgs stand out
- Faster processing: Complete compliance documentation speeds funder checks
- Sector credibility: Higher standards improve public trust in charities
Key Takeaways
- ✓ Safeguarding policies mandatory by March 31, 2025 (vulnerable groups)
- ✓ Financial reporting threshold lowered to £100K income
- ✓ Grant application timelines 2-4 weeks longer (enhanced due diligence)
- ✓ Trustee declarations required annually
- ✓ Serious incident reporting expanded significantly
- ✓ Well-governed charities benefit from higher bar