The number of charities filing their accounts with the Charity Commission late increased by 51% in a year, analysis has found.

The figures are based on data from the regulator for the accounting periods ending 30 June 2023 and 30 June 2024 and have been highlighted by financial firm Lubbock Fine.

It says that falling donations and government funding is putting “a strain on the finances of charities, forcing them to cut their spending and jobs, including within their finance and accounts departments”.

“Charities are under real financial strain, and they worry that a weak set of results will damage future funding prospects, so they opt to delay filing,” said Lubbock Fine partner Hazra Patel.

“But delaying also raises concerns amongst donors who don’t want to donate to a charity with weak internal controls and processes that may put the use of the donated funds in jeopardy.”

Late filing can also lead to a charity’s stakeholders assuming that “something is being hidden or that the organisation is general not being run well”, added Lubbock Fine.

Delaying filing accounts also increases the risk of scrutiny from the Charity Commission, it adds.

Charities that are in default of their statutory reporting requirements for two or more years in the last five can be subject to the Commission’s double defaulter class inquiry.

Charities to be investigated recently after entering this class inquiry include Order of Friars Minor Conventual. The regulator concluded there was misconduct and/or mismanagement in the administration of a Catholic charity after it repeatedly failed to file its accounts on time.

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