Record Registrations and Rebuilding Trust: What the Charity Commission’s 2024-25 Annual Report Tells Us

In the Charity Commission 2024-25 annual report, it’s clear that the charity sector continues to show extraordinary resilience against a backdrop of financial, geopolitical and social pressures.

“Many charities continue to face intense financial strain,” the Commission states, but also acknowledges how trustees are stepping up, making difficult decisions while keeping beneficiaries front and centre.

Charity Registrations Reach Record High

One of the standout headlines this year is the record number of charity applications:
9,836 applications were received, up 9% from last year and over 5,000 organisations successfully registered. This upward trend reflects the sector’s incredible adaptability, with many stepping up to fill gaps created by ongoing global and economic crises.

The Commission also reports that 86% of these applications were assessed within its 30-day target, a major improvement on last year’s 77%.

Growing Use of Regulatory Powers

The Commission has significantly expanded how it reports on its regulatory activity. In total, 13,076 powers were used in 2024-25, a jump from 11,108 the previous year. These powers include inquiries, interventions and compliance checks, which are vital for ensuring public trust and sector integrity.

For example, the Commission:

• Opened 112 statutory inquiries (up from 89 last year)
• Used its inquiry powers 843 times (previously 530)
• Disqualified 37 trustees, compared with 34 the year before
• Received 547 whistleblowing reports

While these numbers reflect an increase in scrutiny, they also highlight a commitment to transparency and good governance, values that charities and their supporters expect.

Financial Resilience and Stronger Governance

To support charities through ongoing economic uncertainty, the Commission updated its guidance on financial resilience and refreshed advice around paying trustees and trustee recruitment. These updates aim to safeguard the voluntary principle while ensuring the trustee pipeline stays open to diverse, skilled individuals.

It’s also encouraging to see a significant leap in compliance: 92% of charities were up-to-date with their filings in 2024-25 (up from 81% last year). A positive sign that systems like the My Charity Commission Account (MCCA) are bedding in.

What Does This Mean for Charities and the Sector

Charities are under pressure, but continue to rise to the challenge: innovating, adapting and staying focused on their mission.

This also signals some key takeaways for boards and charity leaders:

• Recruitment remains vital: trustee pipelines need attention to bring in the next generation of leaders.
• Compliance is non-negotiable: with increased scrutiny and use of regulatory powers, having the right policies and reporting systems in place is essential.
• Trust is your biggest asset: transparent and clear storytelling around impact will continue to matter most to your donors and stakeholders.

As always, Merrifield Consultants is here to help you navigate these changes, whether it’s supporting governance improvements, strengthening your leadership team, or helping you communicate your impact more powerfully.