When things go wrong: serious incident reporting for charities

Charities work hard to deliver their purpose and support their beneficiaries. However, despite a charity’s best efforts, things can go wrong. If they do, it is important that steps are taken to address the issue. In some circumstances, as part of these steps, the charity will need to submit a “serious incident report” to the Charity Commission (Commission).  

Samantha Pritchard, partner, and Jason Sinclair, trainee solicitor, both in our charities team, consider when a serious incident report should be made and the regulatory powers of the Commission.

Who should make serious incident reports?

With the exception of exempt charities, all charities, regardless of size, must report serious incidents to the Commission. While the task of submitting the report may be delegated within the charity, the trustees are ultimately responsible for ensuring that the report is made following a serious incident.

What is a ‘serious incident’?

A serious incident is an adverse event, whether actual or alleged, which results in (or risks) significant:

• harm to people who come into contact with the charity through its work;
• loss of the charity’s money or assets;
• damage to the charity’s property; or
• harm to the charity’s work or reputation.

Reportable incidents may include incidents relating to protecting people and safeguarding. Finance is a significant area of risk, and reportable incidents may relate to financial crime such as fraud, theft, cybercrime, and money laundering. Reportable incidents may also arise from large donations from unknown or suspicious sources, suspicious spending of the charity’s funds or other significant financial loss. Other reportable incidents might include links to terrorism or extremism (including ‘proscribed’ organisations) or other incidents such as insolvency, data breaches, or forced withdrawal of banking services.

When should a serious incident be reported?

Serious incident reports should be made as soon as reasonably possible after the incident, or when the charity becomes aware of it. The report is made online through the Commission’s ‘Serious Incident Report’ form and will include a summary of the incident, the impact on the charity and what is being done to address it.

Serious incidents must be reported so the Commission can ensure trustees are complying with their duties. Reporting serious incidents also enables the Commission to consider what advice/guidance is required or to use its statutory powers and assess the risk to other charities.

What can the Commission do? 

The Commission understands that serious incidents will happen. When something serious happens, it is the Commission’s role to ensure that trustees comply with their legal duties and that the charity manages the incident responsibly. The Charities Act 2011 confers certain regulatory powers on the Commission. When investigating serious incidents, the Commission generally exercises its general regulatory powers. However, where necessary, the Commission may open a statutory inquiry. During such an inquiry,  the Commission can direct an individual to present documents or provide statements, as well as exercise increased powers, including the suspension or removal of a trustee, and the power to make an order to wind up the charity altogether.

Final thoughts

Recognising and responding to serious incidents is a key part of operating a charity. By acting quickly and transparently, a charity’s trustees can help manage the issue and ensure compliance with their duties.

If you have any questions regarding serious incidents or any issues raised in this article, please contact Samantha Pritchard using [email protected] or 0191 211 7905.

If you’d like to learn more about serious incident reporting, our experts are running an engaging training session on serious incident reporting on 9 June 2026, where we will explore this topic in further detail, including hearing first-hand insight from a trustee of a charity that has been through this process.

You can book a place on the training here.