UHY Hacker Young | Chartered Accountants

Are you up to date with charity accounting and reporting requirements?

13 December 2016

The Charity Commission has recently published updated guidance on the reporting and accounting requirements for charities for financial periods commencing on or after 1 November 2016.

The Charity Commission publication, CC15d, sets out the main requirements for charities to prepare an annual report, to prepare annual accounts and to submit an annual return to the Commission

Although there have been minor changes to the requirements regarding the preparation of the annual accounts and submission of the annual return, the main changes that have been reflected in the guidance are those affecting the annual report. These changes came into effect for accounting periods starting on or after 1 November 2016 under the fundraising sections of the Charities (Protection and Social Investment) Act 2016, which came into force on 1 November 2016.

As a result of the Act, the trustees’ annual report for charities subject to statutory audits must include specific additional information about fundraising. For example, all auditable charities which raise funds from the public must provide  the following information:

  1. The fundraising approach taken by the charity;
  2. Details of any fundraising standards or scheme for fundraising regulations that the charity, or anyone acting on behalf of the charity, has voluntarily subscribed to;
  3. Details of any failures to comply with the fundraising standards or scheme;
  4. Whether the charity monitored the fundraising activities of anyone acting on its behalf and, if so, how;
  5. The number of complaints received;
  6. Action taken by the charity to protect vulnerable people from aggressive fundraisers.

If you have any questions on the new requirements, we would be happy to assist – please contact your local UHY charity adviser here.

Additionally, if you would like to read more charity focused blogs please click here.