9 May 2017
Our last blog highlighted the research by the Charity Commission that found failings in accounts quality in over 50% of charities.
The research has also revealed that further to charities failing to adequately explain how they are meeting their objectives, many smaller charities with incomes of less than £25,000 are failing to prepare an annual report and accounts and make them publicly available. Although, with the exception of Charitable Incorporated Organisations, charities with incomes of less than £25,000 are not required to file these documents with the Charity Commission, trustees of all charities have a legal duty to prepare a trustees’ annual report and accounts. The annual report and accounts also give trustees the opportunity to demonstrate to donors, beneficiaries and the general public that they have managed the charity’s funds effectively.
In addition trustees of all charities, regardless of size, are required by law to keep the charity’s details held by the Charity Commission up-to-date. If your charity’s income is over £10,000 or you are a Charitable Incorporated Organisation, you must also complete an annual return within ten months after the end of each financial reporting period.
If you require any assistance with the financial report requirements of your charity then please contact your nearest UHY charity specialist, or if you are interested in reading the full Charity Commission article this can be found here.
To read more about issues facing the charity and not-for-profit sector, click here.
