Connected Charities - Revision history

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	The ~~phrase~~ '''~~Connected~~ charities''' is used when different charities meet the statutory definition set out in the ''[https://www.legislation.gov.uk/ssi/2006/218/contents/made Charities Accounts (Scotland) Regulations 2006]'' (SSI 2006/218), made under the ''[https://www.legislation.gov.uk/asp/2005/10/contents Charities and Trustee Investment (Scotland) Act 2005]''.		The term '''connected charities''' is used when different charities meet the statutory definition set out in the ''[https://www.legislation.gov.uk/ssi/2006/218/contents/made Charities Accounts (Scotland) Regulations 2006]'' (SSI 2006/218), made under the ''[https://www.legislation.gov.uk/asp/2005/10/contents Charities and Trustee Investment (Scotland) Act 2005]''.

	The Regulations define connected charities as:		The Regulations define connected charities as:

Adminwiki: /* Accounting treatment */

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Accounting treatment

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	== Accounting treatment ==		== Accounting treatment ==

	Where charities are connected within the meaning of the Regulations, they may prepare a ~~'''~~single set of accounts~~'''~~ rather than separate accounts for each charity.		Where charities are connected within the meaning of the Regulations, they may prepare a single set of accounts rather than separate accounts for each charity.

	In such cases:		In such cases:

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	</blockquote>		</blockquote>

	This definition is used primarily for the purposes of charity accounting and financial reporting.		This definition is used primarily for the purposes of charity accounting and financial reporting and appears in the interpretation provisions of the 2006 Regulations. It is used to determine when two or more charities may be treated as connected for accounting and reporting purposes.


	== Accounting treatment ==		== Accounting treatment ==

Adminwiki: /* Legislative basis */

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Legislative basis

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	This definition is used primarily for the purposes of charity accounting and financial reporting.		This definition is used primarily for the purposes of charity accounting and financial reporting.

	~~== Legislative basis ==~~

	~~The concept of connected charities arises under:~~

	* ''Charities and Trustee Investment (Scotland) Act 2005''
	* ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218)

	~~The definition appears in the interpretation provisions of the 2006 Regulations and is used to determine when two or more charities may be treated as connected for accounting and reporting purposes.~~

	== Accounting treatment ==		== Accounting treatment ==

Adminwiki at 13:45, 8 March 2026

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	The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''.		The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''[https://www.legislation.gov.uk/ssi/2006/218/contents/made Charities Accounts (Scotland) Regulations 2006]'' (SSI 2006/218), made under the ''[https://www.legislation.gov.uk/asp/2005/10/contents Charities and Trustee Investment (Scotland) Act 2005]''.

	The Regulations define connected charities as:		The Regulations define connected charities as:

Adminwiki: /* Connected charities */

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Connected charities

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	~~== Connected charities ==~~

	The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''.		The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''.

Adminwiki: /* Connected charities */

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Connected charities

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	= Connected charities =		== Connected charities ==

	The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''.		The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''.

Adminwiki: /* Charity group with multiple charitable entities */

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Charity group with multiple charitable entities

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	=== Charity group with multiple charitable entities ===		=== Charity group with multiple charitable entities ===

	In some cases a ~~charitable organisation~~ may ~~operate~~ through several separate charitable bodies rather than a single charity. Each organisation may be entered separately in the Scottish Charity Register but operate within a wider organisational structure.		IIn some cases the delivery of a charity’s purposes may be through several separate charitable bodies rather than a single charity. Each organisation may be entered separately in the Scottish Charity Register but operate within a wider organisational or ‘group’ structure.

	~~For example~~, a ~~national charity may establish~~ a ~~number~~ of ~~regional charitable organisations responsible for delivering services in different parts~~ of ~~Scotland. Each regional body may have its own governing document~~ and ~~charitable purposes but share a common governing body or administrative structure~~.		This type of arrangement may arise where the ‘parent’ organisation of a group structure has subsidiary charities within its fold, each operating as a distinct legal entity but forming part of a broader charitable network. Through carefully considered governance agreements, service level agreements and schedules of reserved and devolved matters, the administration of the group, and therefore the subsidiary charities, is connected.

	~~Where the same trustees control the organisations~~, ~~or where the charities are administered together, the charities~~ may ~~fall within the definition~~ of ~~connected charities~~ in ~~the Charities Accounts (~~Scotland~~) Regulations 2006~~. ~~In such circumstances it may be possible for the charities to prepare~~ a ~~single set of accounts covering the connected charities, provided the requirements of the Regulations are met~~.		For example, a national charity may establish a number of regional charitable organisations responsible for delivering services in different parts of Scotland. Each regional body will have its own governing document, charitable purposes and charity number but share a common administrative structure.

	This type of arrangement may arise where an umbrella organisation coordinates the activities of several related charities, each operating as a distinct legal entity but forming part of a broader charitable network.		In these cases it is likely possible for the charities to prepare a single set of accounts covering the connected charities, provided the requirements of the Regulations are met.
	In these cases, the ~~governing body may~~ prepare a single ~~consolidated~~ set of ~~charity~~ accounts covering ~~all~~ connected charities.

	== Further resources and links ==		== Further resources and links ==

Adminwiki: Created page with "= Connected charities = The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''. The Regulations define connected charities as:
“'''connected charities''' means charities having common or related charitable purposes, or charities which have common control or..."

2026-03-08T13:20:20Z

Created page with "= Connected charities = The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''. The Regulations define connected charities as: <blockquote> “'''connected charities''' means charities having common or related charitable purposes, or charities which have common control or..."

New page

= Connected charities =

The phrase '''Connected charities''' is used when different charities meet the statutory definition set out in the ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218), made under the ''Charities and Trustee Investment (Scotland) Act 2005''.

The Regulations define connected charities as:

<blockquote>
“'''connected charities''' means charities having common or related charitable purposes, or charities which have common control or unity of administration.”
</blockquote>

This definition is used primarily for the purposes of charity accounting and financial reporting.

== Legislative basis ==

The concept of connected charities arises under:

* ''Charities and Trustee Investment (Scotland) Act 2005''
* ''Charities Accounts (Scotland) Regulations 2006'' (SSI 2006/218)

The definition appears in the interpretation provisions of the 2006 Regulations and is used to determine when two or more charities may be treated as connected for accounting and reporting purposes.

== Accounting treatment ==

Where charities are connected within the meaning of the Regulations, they may prepare a '''single set of accounts''' rather than separate accounts for each charity.

In such cases:

* a single set of accounts to cover all of the connected charities;
* the accounts must clearly identify each charity included; and
* the accounting records must still distinguish the funds belonging to each charity.

The ability to produce combined accounts is commonly used where several charitable funds are administered by the same governing body.

== Practical examples ==

Situations where the connected charities provisions are commonly applied include:

* local authorities administering multiple educational or welfare trust funds
* governing bodies of schools managing several endowment funds
* umbrella bodies administering multiple small charitable trusts

=== Charity group with multiple charitable entities ===

In some cases a charitable organisation may operate through several separate charitable bodies rather than a single charity. Each organisation may be entered separately in the Scottish Charity Register but operate within a wider organisational structure.

For example, a national charity may establish a number of regional charitable organisations responsible for delivering services in different parts of Scotland. Each regional body may have its own governing document and charitable purposes but share a common governing body or administrative structure.

Where the same trustees control the organisations, or where the charities are administered together, the charities may fall within the definition of connected charities in the Charities Accounts (Scotland) Regulations 2006. In such circumstances it may be possible for the charities to prepare a single set of accounts covering the connected charities, provided the requirements of the Regulations are met.

This type of arrangement may arise where an umbrella organisation coordinates the activities of several related charities, each operating as a distinct legal entity but forming part of a broader charitable network.
In these cases, the governing body may prepare a single consolidated set of charity accounts covering all connected charities.

== Further resources and links ==

* [https://www.oscr.org.uk/managing-a-charity/charity-accounting/a-guide-to-charity-accounts/9-connected-charities/ Guidance on the preparation of charity accounts and the treatment of connected charities] is provided by the Office of the Scottish Charity Regulator (OSCR).
* [[Office of the Scottish Charity Regulator (OSCR)|Office of the Scottish Charity Regulator]]