Charity Focus 7: Reporting and accounting changes - make sure you get it right!

Reporting public benefit

New compulsory obligations to report on public benefit in the annual trustees’ report apply for accounting periods beginning on or after 1 April 2008 (well run charities and good boards are already including appropriate details in their reports voluntarily).  Comments must be made on how the aims of the charity are carried out through activities for the public benefit – in other words details are required about what a charity does to pursue its charitable purposes, what benefits those activities provide and who gains the benefits.

This should be an easy exercise for trustees, since the provision of charitable public benefit of a suitable kind, given the charitable purposes stated for that charity in its own constitution, should be the focus for the whole organisation!  All the rules ask is that you let people see the good that’s always been there.

Beware the new filing deadlines

Charities and their advisers need to meet the new filing deadlines that now apply.  Any trading subsidiary and any charitable company limited by guarantee must provide signed copies of their annual accounts and reports to Companies House within nine months of the year end.

It is also important to deliver those to the Charity Commission and file the charity annual return on time.  A charity that fails to do so puts itself at risk of removal from the Register of Charities  The Charity Commission has a legal duty under the Charities Act 2006 to remove any organisations that have ceased to operate or exist and it regards annual accountability failures as evidence that a charity is defunct.

More assistance with these changes

View and purchase relevant up-to-date publications 

View and book suitable training opportunities

If you would prefer to arrange customised training in-house at your own premises, please contact us to discuss this.