Preparing Charity Accounts: Be Aware of Reporting Obligations
Many charities are unaware of their reporting obligations with 1 in 5 having submitted the wrong documents, according to research by the Charity Commission.
1 in 6 did not send any form of report and others only sent their annual reports and accounts after reminders and explanations from the commission.
Nigel Davies, head of accountancy services at the commission, said:
“The annual report and accounts is an opportunity for the trustees to demonstrate to the charity’s supporters, potential funders and the public that they have managed its resources effectively and are meeting its objectives.
“Trustees need to tell their charity’s story well to maintain donor and public confidence.”
Preparing charity accounts
Charities with an income of more than £10,000 a year have to prepare an annual return and send it to the Charity Commission. This is different to your tax return which you send the HMRC.
Charities in England and Wales will need to include the following information:
- start and end dates of the financial period
- total income and spending
- details of spending outside England and Wales.
Charities with an income of more than £25,000, and all incorporated charities regardless of income, will also have to include:
- the charity’s accounts
- the trustee’s annual report
- independent auditor or examiner’s report.
Talk to us to discuss your reporting obligations.