15 February 2019
2018 has been a busy year for many in the charity sector, but interestingly a significant number of small charities left the Charity Commissions register in 2018. This appears to be a trend; over the last three years the number of small charities leaving the register each year has been increasing, culminating in 4,783 charities with an income of less than £1.5m leaving the register in 2018.
There are a number of reasons for the increase in small charities leaving the register; some of it will be down to the Charity Commission removing charities that appeared to no longer operate, some of it will be down to the current economic climate, and still more down to the increased compliance requirements on small charities.
Trustees have significant responsibilities in complying with the requirements of the Charities Commission, and for people who are volunteers and have limited experience, this can prove to be quite onerous. We highlighted in our recent blog ‘Charity Commission finds quality of charity accounts has fallen, and calls for a ‘step change’ in public benefit reporting’ that some charities are not meeting their obligations.
Is this the tip of the iceberg?
The Charity Commission did not set the benchmark particularly high when they were reviewing the accounts in their sample, and yet large numbers failed to meet the required standard. This means that it is more important than ever to ensure that your charity is not only getting the right professional advice in respect of your accounts and tax position but that you are also actively seeking out advice and acting on it.
This is where UHY can help
We have a range of experts in the Charity and NFP sector who can provide accounting advice, but also help with budgeting, forecasting and restructuring to ensure that your charity is able to cope with the challenges that the future holds – whatever that may bring.
If you have any questions or would like assistance, please contact your local UHY charity adviser. Alternatively, if you would like to read more charity-focused blogs please click here.
