Depending on the legal structure a ‘charity’ adopts, they are governed by a number of regulatory bodies and legislation.

Charity Commission

If you are an unincorporated charity or charitable company operating in England and Wales you are answerable to the Charity Commission.

The Charity Commission regulates most charities in England and Wales, subject to some exempt categories. These exempt categories include universities, certain museums and galleries, and organisations administered by the Church Commission. The Charity Commission’s publication ‘CC23’ gives full details of which charities are exempt.

The Charity Commission has the responsibility, within England and Wales, for registering charities, monitoring annual accounts and reports, and identifying and resolving problems with individual charities through investigation. It has legal powers including the removal of charitable status. The Commission also provides support and information to charities.

Access their website here: www.charitycommission.gov.uk

Charities Acts (1992 & 1993) & the Charities Act 2006

If you are an unincorporated charity and/or charitable company, the Charities Act applies to your organisation.

The Charities Acts (1992 & 1993) is the legislation underpinning the governance and operation of charities in England and Wales. The government published a draft Charities Bill in May 2004 proposing some key changes to charity law. The Bill completed its passage through Parliament in November 2006 and received Royal Assent. It is now on the statute book as the Charities Act 2006 and is being introduced in stages between 2006-2009.

The NCVO website has a comprehensive commentary on the new Charities Act www.ncvo-vol.org.uk and the Charity Commission website includes detailed information.

Statement of Recommended Practice (SORP)

SORP applies to unincorporated charities and charitable companies.It is also adopted by some limited companies and Industrial & Provident Societies (IPSOCs) who have charitable objectives because it represents best practice for all charitable entities.

The SORP is a publication by the Charity Com that is designed to set out the recommendations on how a charity should report on its finances and activities each year. The SORP is compatible with the requirements of law in England and Wales and clarifies how charities should interpret accounting standards and principles. It was first published in 1995, then subsequently updated and amended in 2000 and 2005. It is the principal "rule book" for charity accountants. PDF copies can be downloaded from the Charity Commission website www.charitycommission.gov.uk, or printed copies can be purchased from publishers CCH www.cch.co.uk for £15.

The Companies Acts are applicable to all companies including charitable companies except in Northern Ireland.

The Companies Acts are the legislation underpinning the governance and operation of companies in the UK. Paragraph 419 of the SORP contains information on how charity legislation interacts with the Companies Act.

Companies House

Companies House is an Executive Agency of the Department for Business, Enterprise and Regulatory Reform (BERR), applicable to all companies including charitable companies. It exists to ensure the requirements of the Companies Act are met. The main functions of Companies House are to incorporate and dissolve limited companies, examine and store company information and make this information available to the public. Information to be filed at Companies House includes annual accounts, annual returns and notification of changes to the structure, board of directors, or Memorandum and Articles of Association.

Industrial and Provident Societies Act (1965 to 2002)

The IPSOC Act (1965 to 2002) is the legislation underpinning the governance and operation of IPSOCs in the UK.

Financial Reporting Council (FRC)

The FRC is the UK's independent regulator for corporate reporting and governance and applies to all UK entities that prepare statutory accounts. The FRC has a number of "operating bodies", one of which is the Accounting Standards Board. This is the body responsible for setting the accounting standards and principles that all UK accounts must comply with.

HM Revenue & Customs (HMRC)

HMRC is the government body that is responsible for collecting and administering taxes. Until April 2005, it was two separate entities: the Inland Revenue and HM Customs and Excise. The newly combined HMRC deals with direct taxes (income tax, corporation tax, inheritance tax, national insurance and capital gains tax) and indirect taxes (VAT, stamp duty and excise duty) as well as paying tax credits and benefits. Charities are not "exempt" from all taxes and often carry a heavy burden of VAT on their purchases. In addition most charities have to deal with HMRC for payroll taxes and gift aid. Indeed many charities have more complicated tax affairs than commercial organisations.