A Simple Guide to Completing a Charity Annual Report for Early Years Settings

If you're running a charity-managed early years education setting, completing your annual report for the Charity Commission can feel like just another admin task on an already packed to-do list. But it’s more than just a legal requirement — it’s your chance to tell your story, showcase your impact, and prove that your organisation is well-run and sustainable.

In this short blog, I’ll walk you through what’s required, who should be involved, and how to complete your annual report with confidence.

What Is an Annual Report (and Why Does It Matter)?

All registered charities in the UK must prepare an annual report and submit it to the Charity Commission — even small ones.

Your annual report:

• Demonstrates how your setting meets its charitable objectives

• Shows transparency in financial management

• Provides assurance to parents, funders, and trustees

• Keeps your charity compliant with charity law

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Who Needs to Submit One?

It depends on your income level:

• Charities with income under £25,000:

  You don’t have to send a full annual report to the Charity Commission, but you still need to prepare one and submit your annual return.

  
  

• Charities with income over £25,000:

  You must submit:

  • An annual return

  • Your annual report

  • Your accounts

    
    

Even if you’re under the threshold, having a simple, well-structured report is still good governance practice.

Download my handy report writing checklist to use year after year here.

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What to Include in Your Annual Report

Your report should explain what your setting has done over the last financial year and how you’ve worked towards your charitable aims.

1. Reference and Administrative Details

Include:

• Charity name

• Registered charity number

• Address

• Names of trustees (and any changes)

• Names of key staff (e.g. manager)

2. Objectives and Activities

This section is key. Clearly state:

• What your charity exists to do (your charitable purpose found in your constitution)

• The services you offer (e.g. affordable childcare, play-based learning)

• Any major projects or new initiatives

Example: "Our setting exists to provide high-quality, affordable early years care in a community-led environment, supporting families and promoting school readiness."

3. Achievements and Performance

Talk about your impact! You could include:

• Number of children supported

• Feedback from parents or Ofsted

• Partnerships or community involvement

• Fundraising activities

• Any challenges and how you overcame them

Keep it honest and reflective — this isn’t just for the Charity Commission; it’s a record of your setting’s growth and progress.

4. Financial Review

Summarise:

• Income and expenditure

• Reserves held and your policy on reserves

• Any significant changes (e.g. new funding, big grants, or losses)

This should align with your end-of-year accounts, so work closely with your treasurer or accountant.

5. Risks and Future Plans

Briefly outline:

• Key risks (e.g. funding cuts, recruitment challenges)

• What’s being done to manage them

• Plans for the year ahead (e.g. expanding hours, improving facilities, trustee recruitment)

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Who Should Be Involved?

Creating the annual report isn’t just a job for one person. Involve:

• The manager, for operational and impact details

• The treasurer, for financial input

• The chair or secretary, for overall structure and governance details

• The whole board, to review and approve it before submission

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When Does It Need to Be Done?

• Deadline: You must submit your annual documents within 10 months of your financial year-end.

• Tip: Don’t wait! Start preparing right after your year-end accounts are ready.

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How to Submit It

Log into your account on the Charity Commission online portal and follow the steps to upload your:

• Annual return

• Annual report (if required)

• Signed accounts

Make sure all trustees have reviewed and approved the documents before submission.

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Final Checklist

Before you hit "submit," ask:

• Have we told our story clearly?

• Are the financial figures accurate and match our accounts?

• Is it signed and dated?

• Have trustees approved it?

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Final Thought

Your annual report isn’t just a legal tick-box — it’s a celebration of your year’s work. Whether you’re big or small, funded or fundraising, every early years charity has a story worth telling.

Take the time to reflect on your impact, showcase your setting, and prepare for another year of making a difference.

Download my handy report writing checklist to use year after year here.