3.7.3.1. Small Charities

For a small charity, a related party is a person or organisation that is connected to the charity and has significant influence over the charity.
This includes:

• a charity’s Responsible People and their close family members
• a charity’s senior management and their close family members
• other people or organisations that can influence a charity’s decision-making.
  

Importantly, simply being an employee or volunteer in a charity does not make someone a related party. To be a related party, a person or organisation must have significant influence over the charity’s strategic and financial decisions.

Reporting for Small Charities

If there are no reportable related party transactions, small charities should answer ‘No’ to the question about ‘Did your charity have any reportable related party transactions in the 2023 reporting period?’

Small charities who do have reportable related party transactions in the reporting period must select one or more applicable types of related party transaction in the 2023 Annual Information Statement:

• Fees paid to a related party for providing goods or services to the charity
• Loans from/to a related party
• Salary/wages paid to a related party’s relative(s)
• Transfer of charity property or assets to a related party
• Charity goods or services provided at a discount to a related party
• Significant use of charity property by a related party
• Investment in a related party
  

Some other types of transactions may also be reportable:

• because of their size,
• if the terms and conditions are different to the terms and conditions that would apply to similar transactions with other unrelated parties, or
• if information about those transactions would affect a stakeholder’s understanding of its operations or its financial performance and position.
  

Small charities are not required to report remuneration paid to Key Management Personnel. For more information, see Key Management Personnel remuneration guidance.