Charity reporting and accounting
Charity reporting and accounting

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Charity reporting and accounting
  • Registered non-company charities where gross income does not exceed £25,000 in the relevant financial year
  • Registered non-company charities with a gross income of over £25,000 but not exceeding £250,000 in the relevant financial year
  • Registered non-company charities with a gross income of over £250,000 but not exceeding £500,000 in the relevant financial year, and total assets not exceeding £3.26m
  • Registered non-company charities with a gross income exceeding £500,000 in the relevant financial year, or whose gross assets exceed £3.26m and gross income exceeds £250,000
  • Registered non-company charities which have either charitable or non-charitable subsidiaries must prepare group accounts where the income of the group, after eliminating intra group transactions and consolidation adjustments, exceeds £500,000
  • Company charities
  • Charities excepted from registration
  • Charities exempt from registration
  • Accounts

The requirements for reporting and accounting by charities are set out in sections 130–176, Part 8 Charity Accounts, Reports and Returns of the Charities Act 2011 (CA 2011), the Charities (Accounts and Reports) Regulations 2008 and supplemented by the Statement of Recommended Practice—Accounting and Reporting by Charities issued in March 2005 (SORP). The requirements differ for different sizes and types of charity. To understand what requirements apply check:

  1. whether or not the charity is also a company

  2. its income for the current financial year

  3. the value of its assets and

  4. whether or not it is required to be registered with the Charity Commission for England and Wales (the Commission) as a charity

Then establish:

  1. what type of accounts must be prepared

  2. what information is needed in the Trustee's Annual Report

  3. whether the accounts need an independent examination or audit and

  4. what information must be sent to the Commission.

Registered non-company charities where gross income does not exceed £25,000 in the relevant financial year

  1. Basis of preparation—accounts must be prepared either on the receipts and payments basis or the accruals basis

  2. External scrutiny—there is no requirement to have the accounts independently examined or audited unless the charity's governing document stipulates it

  3. Type of annual report—an Annual Report must be prepared (unless excepted from registration). This may be simplified

  4. Information to be