Charities monthly round-up – March 2026

As we head towards Easter, it still doesn’t quite feel like spring has sprung. Despite the grey skies, this time of year is always a welcome pause – a moment to grab a hot cross bun, take a breath, and reset before the busy months ahead.

While the sunshine may be slow to make an appearance, the charity sector certainly isn’t! This month’s newsletter is packed fuller than an Easter egg basket: we’ve got updates from the employment world (including a sponsor‑licence crackdown), a wander through the wilds of fundraising rules, some surprisingly punchy Charity Commission activity – from safeguarding shake‑ups to rare enforcement action – plus a couple of gentle reminders that, yes, the regulator really does read your accounts.

So grab a cuppa, settle in, and enjoy this month’s round‑up.

Data alert: Has your charity’s company profile been affected?

Companies House has temporarily paused its WebFiling service after identifying a technical glitch that could, in some cases, have allowed logged‑in users to see or amend details from other companies’ records. The issue, which could occur when navigating backwards in a browser, is now being investigated, and the service has been taken offline as a precaution while the team puts things right.

While there’s currently no indication that charity company records have been misused, it’s a good idea for our charity clients who are registered companies to give their details a quick check once WebFiling is back up and running—just to be on the safe side. Experts have highlighted that the glitch could have enabled incorrect changes, even though no confirmed incidents have been reported. A simple review of your registered information will help ensure everything looks as it should and provide peace of mind going forward. Ben Pumphrey, legal director in our data governance team, wrote an article on this. You can read the article here.  

Charity Commission issues new guidance on the situation in Iran

The Charity Commission has issued a statement in response to the volatile and fast‑moving situation in Iran, highlighting several areas where charities should take particular care. The regulator stresses the importance of staff and volunteer safety for any organisations operating or partnering in the region, advising trustees to monitor Foreign, Commonwealth & Development Office travel advice and to review safeguarding measures for anyone working overseas. It also emphasises the heightened risks around political activity, public statements, and online content, noting that the political context in Iran may affect how a charity’s activities are perceived. Trustees must therefore ensure that all actions (including campaigning, events, and social media) further their charitable purposes and comply with regulatory expectations.

The recent statement and guidance can be read in full here and is also useful if your charity is operating in other volatile areas of the world. Charities in that situation should ensure that their risk management frameworks, due diligence processes on overseas partners, and their safeguarding, and political activity policies rare compliant and up to date. The Commission has reiterated that links to sanctioned individuals or groups, or any perceived association with extremism, will be taken seriously, making robust internal controls essential. Should you require any specific advice please contact Edwina Turner or your usual AC contact.

Sponsor crackdown: What charities need to know

A significant number of our charity clients rely on sponsoring workers from abroad to fill essential roles in the UK. Recent figures show a sharp rise in the Home Office revoking sponsor licences, with around 3,000 licences revoked in 2025. This is a substantial increase on previous years, driven by enhanced data‑sharing between HMRC and the Home Office, which makes it easier to detect non‑compliance.

This is particularly important for charity sponsors, many of whom operate with lean HR capacity and variable pay structures that can inadvertently create compliance risks. The Home Office is also moving more quickly to revoke licences without first suspending them, meaning charities must maintain robust HR systems, ensure PAYE accuracy, and report any changes promptly to avoid jeopardising their ability to employ sponsored workers.

Hazel Findlay, associate in our employment and pensions team, recently authored an excellent blog post explaining the Home Office’s crackdown on sponsorship licenses. You can read the full article here.

If you are concerned about any existing or future sponsorship licenses at your charity or you are seeking support with reviewing your internal policies and procedures surrounding sponsorship, our Employment and Charities teams are on hand to help. Please contact Hazel Findlay, Esther Campsall or your usual AC contact.

When good intentions go off‑track

The Fundraising Regulator has found four breaches of the Code of Fundraising Practice at a national charity, after concerns were raised about how the charity handled a memorial fund set up in honour of a young supporter. The family had believed their son’s memorial donations would be ring‑fenced, only to discover later that the funds had gone into the charity’s general pot – something not helped by the lack of clear detail on the charity‑managed JustGiving page. The investigation also found that the family were effectively acting as volunteer fundraisers “on behalf of” the charity, which meant they should have been given proper support and information that didn’t happen.

For charities, this is a helpful reminder of the importance of making sure everyone is genuinely on the same page when it comes to memorial or in‑aid fundraising. Clear conversations, clear paperwork and clear fundraising pages can prevent misunderstandings and avoid heartache later on. Strong documentation and open communication aren’t just “nice to have” – they help families feel respected and informed, while keeping your charity safely within regulatory expectations.

If you have any questions regarding fundraising, please contact Emma Watt or your usual AC contact.

Safeguarding scrutiny is stepping up

A recent parliamentary debate has called on the Charity Commission to “step up” its approach to safeguarding, with MPs arguing that the regulator hasn’t always acted strongly enough when concerns are raised – especially in small or more vulnerable settings. For charities, the takeaway is simple: safeguarding is moving even higher up the regulatory agenda, and the Commission may become much more hands‑on in checking how organisations handle risks and respond to allegations.

Safeguarding is one of those areas where most charities and faith organisations truly care about getting things right, yet still find themselves struggling in practice. We regularly see strong intentions paired with outdated policies, uncertainty about reporting routes, or organisational cultures that unintentionally make it difficult for people to speak up. In faith settings especially with close‑knit communities and the high regard in which leaders may be held, it may be even harder to raise concerns or ensure that issues receive an objective, independent review when they do arise.

A common mindset can be the belief that “this wouldn’t happen here.” But effective safeguarding relies on recognising that harm can occur in any organisation, even the warmest and most well‑meaning. Systems and processes aren’t there to hinder – they’re there to protect everyone involved, and with political and regulatory attention increasing sector‑wide as a result of high‑profile safeguarding failures, expectations are only becoming tighter, which in turn means more scrutiny for charities of all sizes.

The positive news is that this is a great moment for organisations to take stock and strengthen their approach. Whether it’s refreshing policies, reviewing culture and governance, providing training, supporting incident responses or investigations, or helping trustees understand their responsibilities. If you want to discuss this in more detail, please contact Freya Cassia in our regulatory team.

Before you launch that appeal…

Issued late last month, the Charity Commission’s refreshed guidance Fundraising for an Emergency, spotlights how charities can run disaster and emergency appeals legally, transparently, and effectively. The updates make it clear that trustees must first check whether responding to a particular emergency actually falls within their charity’s purposes, and where it doesn’t, consider alternative ways to help. The guidance also emphasises the need for proper planning, clear appeal terms, and setting a legally required “secondary purpose” explaining what will happen to donations if the original aim can’t be met or if funds exceed or fall short of what’s needed.

These updates are a timely reminder for charities to review their approach to emergency fundraising, governance, and risk management. Sadly, the need for emergency fundraising is increasing in these uncertain times. For any advice please contact, Emma Watt, Edwina Turner  or your usual AC contact.

A cautionary tale in charity governance

The Charity Commission’s new inquiry into a Surrey charity is a timely reminder that regulators really do look closely at charity accounts and will step in when something doesn’t add up. In this case, a £900,000 loan to a trustee’s family member, meant to be repaid within three years but quietly extended, immediately raised red flags. As the Commission probed further, they found additional issues, including possible private benefits and unmanaged conflicts of interest, which quickly expanded the scope of the investigation into the charity’s wider governance and financial management.

For most charities, this isn’t about fear – it’s about awareness. Even small decisions can attract attention if they aren’t clearly documented or aligned with the charity’s best interests. Loans to connected people, informal decision‑making or gaps in paperwork can all create the appearance of risk. The Commission does check, and cases like this show how quickly a simple query can escalate. Charities should regularly review their conflict‑of‑interest processes, and financial controls. For any advice, please contact Edwina Turner or your usual AC contact.

Is your charity ready for tougher oversight?

The Government is proposing significantly stronger powers for the Charity Commission, including the ability to close down charities linked to extremism, speed up investigations, tighten appeals processes, and potentially ban individuals with hate‑crime convictions or evidence of promoting violence or hatred. These changes signal a tougher regulatory landscape, with the possibility of other additional measures such as mandatory trustee ID checks and increased enforcement around fundraising also under consideration. You can read the Commission’s press release here.

More information

For more information or advice on the topics covered in this month’s newsletter, please get in touch with your usual AC contact or me,  Edwina Turner your editor for this month.

For those of you who may not know me, I am a legal director in the charities team at Anthony Collins and I lead the firm’s charity governance work. I have extensive experience of advising and establishing all types of charities – unincorporated, trusts, charitable companies limited by guarantee, charitable incorporated organisations etc. On a regular basis I deal with asset transfers; establishing trading subsidiaries and social enterprise companies; group structures; advising on payment of trustees; grant agreements; and liaising with the Charity Commission concerning all aspects of charity regulation. This includes registration, serious incident reporting, altering charitable objects, and charity investigations. 

I enjoy working closely with clients to understand how their governance fits within the bigger picture of their mission, relationships and day-to-day operations and have a keen interest in the way good governance can support long-term sustainability and impact. I also enjoy training trustees on their duties and potential liabilities.