All registered charities are required to prepare a Trustees’ Annual Report. It is a key document because:

• it sets out the charity’s achievements and activities in the year for the public benefit
• it explains what the charity is trying to do and how it goes about it
• trustees can use it to explain matters that cannot be fully explained by the accounts alone
• it adds to the transparency and accessibility of the financial information that the accounts provide

The trustees themselves don’t always write the report. For example:

• in larger charities they often delegate the report writing to staff
• they may also get help from volunteers and beneficiaries of the charity who want to write about their experiences
• the charity’s professional advisors may help with some of the more technical sections of the report.

However the trustees need to take ownership of the report. For example, where the report states that trustees have had regard to the Commission’s Public Benefit guidance or have developed their risk policy, all trustees must be aware of the processes the board has adopted to do those things. They should also ensure that they are happy that it gives a good account of what the charity is doing and how it works.