Charities Regulator Launches Traffic Light System to Grade Annual Reporting Compliance

In a move to enhance transparency and strengthen public trust, the Charities Regulator has launched a new traffic light system on the Register of Charities. As of 2 April 2025, this system provides a clear and simple visual indicator showing whether a charity has met its legal obligation to submit its annual report on time.

Already in use in other countries, the system is designed to highlight the charities that are meeting their reporting responsibilities. It allows charity trustees, donors, funders, and the public to quickly assess a charity’s compliance at a glance.

How the Traffic Light System Works

Each charity’s record on the Register now displays one of three coloured symbols based on the timeliness of its annual report submission:

• Green – The report was submitted on time (within ten months of the end of the financial year).
• Amber – The report was submitted, but late.
• Red – The charity has not submitted its annual report.

The system applies only to annual reports due on or after 2 April 2025. It does not assess past compliance, which means traffic light indicators will appear only as each charity's new reporting deadline passes. Over time, as each due date passes, the Register will update to reflect whether a charity has submitted on time, submitted late, or failed to submit altogether.

Why Timely Reporting Matters

Submitting an annual report on time is a legal requirement for all registered charities. These reports form a vital part of each charity’s public record, helping ensure transparency, accountability, and the overall accuracy of the Register.

Ongoing Compliance Efforts

The new system supports the Regulator’s wider targeted compliance initiative, aimed at increasing annual report submission rates. Enforcement actions already taken have resulted in prosecutions and removals from the Register for repeated non-compliance.

To support charities in fulfilling their obligations, the Charities Regulator provides comprehensive guidance and resources on its website to help trustees prepare and file annual reports correctly and on time.

Reinforcing Confidence in the Sector

The traffic light system is designed to highlight charities that meet their legal obligations and make compliance more visible and accessible to all stakeholders. It supports greater transparency across the sector and encourages timely reporting by clearly showing each charity’s reporting status.

With the system now live, donors, funders, charity trustees, and the public have a powerful new tool to help them make informed decisions, backed by transparent and up-to-date compliance information.