The annual report published recently by the Office of the Scottish Charity Regulator announced a 17% fall in the number of submitted incident reports over the last year.
In a drop of over 100, the OSCR received 527 incident reports this year, compared to 638 in the last.
Other matters reported on included the OSCR receiving 770 new applications for charitable status this year, to a total of 24,975 charities on the OSCR's register at the end of March 2024.
Of these however, 2520 were not up to date with filing their annual return and accounts, leading to the removal of 400 inactive charities from the Scottish Charity Register. Additionally, the OSCR received an increase in whistleblowing reports; 10 reports were submitted this year, up from eight in 2022/2023.
The OSCR launched its 2023-2026 corporate strategy this year and launched new regulatory priorities to help ensure that the Scottish charity space is regulated efficiently and effectively.
Strengthened by The Charities (Regulation and Administration) (Scotland) Act 2023, the OSCR has been empowered to open inquiries into defunct charities and to appoint interim trustees to charities, even when it had not been requested by the target organisation.
The energy and new powers granted to the OSCR highlight the need for charities in Scotland to ensure that they are up to date with their filings and accounts. Otherwise, the organisation will run the risk of being investigated by the regulator for inactivity.
The OSCR's Revitalising Trusts Project investigates charities that appear inactive and seeks to identify charitable funds lying dormant so as to work with trustees to reactivate those funds or find new uses for them. Charities at risk of investigation include those who:
- Have not spend or received any funds in the last five years; or
- Have donated less than 30% of their total income in the last five years.
It is therefore important that not just dormant charities, but those who's cashflows result in smaller percentages of their revenues going towards their charitable causes, are aware that they may receive attention from the OSCR as a result, and if they are contacted, that they cooperate actively with them to find the best solution that serves both the charity and the interest of those it supports.
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