How to link charities
How to link charities to make accounting and reporting easier.
Applies to England and Wales
When to link charities
Charities that are connected or have the same trustees can apply to be linked - this means they can prepare just one set of accounts and share a charity number. This is not the same as charities merging.
The Commission can only link charities that have the same trustees and/or are connected because of the service they provide.
‘The same trustees’ - what this means
‘The same trustees’ means the charities you’re linking have the same:
- individual people appointed as trustees of both charities
- corporate trustee, for example a company, appointed as sole trustee of both charities
Some charities have a sole corporate trustee, which is also a charity. This does not mean these 2 charities have the same trustee.
For example, charity A has a sole corporate trustee. That corporate trustee is also a charity, charity B. While charity A’s trustee is charity B, charity B’s trustees are its directors. This means they do not have the same trustee and cannot be linked on those grounds.
‘Connected’ - what this means
‘Connected’ means charities that provide different aspects of the same service, for example:
- separate prize funds within a school
- residents’ welfare funds administered by a residential care home
This will not usually apply where two charities who work in the same charitable field are geographically remote and have no other connection.
Advantages of linking charities
Linked charities:
- prepare only one set of accounts and trustees’ annual report
- share a charity number
- submit only one annual return
Once charities are linked, one will be the reporting charity, producing only one set of accounts for all of the linked charities. The accounts must still report separately on the assets and activities of each linked charity, including how they provide public benefit.
The reporting charity keeps its own charity number, and the other charities linked to it will use that number with an extra digit at the end to show that it is linked. For example, if the reporting charity’s number is 123456, the linked charities will have numbers 123456/1, 123456/2 and so on.
Limitations of linking charities
Think carefully about whether the linked charities losing their old numbers might cause problems, for example:
- a loss of history and branding; linked charities will not have their previous accounts submissions displayed on the register of charities and publicity material might have to change
- when fundraising in the name of a linked charity, check with the bank that there will be no problems in paying the funds into the charities’ bank accounts
- grant funders may refuse charities that do not have a main registered charity number, and the public may find the new number confusing
Linking charities isn’t the same as merging them. Linked charities cannot combine their assets, and cannot spend their money on the purposes of the other charities they are linked to.
Each charity also keeps its own separate governing document.
Each charity must act in its own best interests and manage potential conflicts.
Linked charities will still need to:
- tell the Commission about trustee changes, if the trustees are different from the reporting charity
- keep within company law accounting rules, if any of the charities are companies
- identify restricted and unrestricted funds separately
- keep permanent endowment separate from the linked charities’ other funds
If the reporting charity is a company, it cannot treat the permanent endowment of a linked charity as part of its corporate property.
You and the other trustees should think carefully about the potential advantages and limitations of linking. Take professional advice if needed.
How to apply to link charities
Complete the online form if:
- you are a trustee
- you are someone else authorised to apply on the charity’s behalf, such as an employee or professional adviser
- all the charities are registered
What information to provide in the form
You will need to tell us:
- the names and registration numbers of the charities to be linked
- details of whether you want to link the charities because they have the same trustees or because they are connected due to the service they provide
Apply to link where one or more charity is unregistered.
It is an offence under section 60(1)(b) of the Charities Act 2011 to knowingly or recklessly provide false or misleading information.
How to bring linking to an end
Updates to this page
Published 23 May 2013Last updated 7 March 2024 + show all updates
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Guidance updated to reflect changes introduced by the Charities Act 2022.
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Guidance updated to reflect changes introduced by the Charities Act 2022.
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Included links to Charity Commission forms for applying to: * link charities * be listed on the register of merged charities
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First published.