Charity & Non-Profit Accountants

Not every charity needs an audit, and paying for one unnecessarily wastes charitable funds. Broadly, for registered charities in England and Wales:

• Gross income up to £25,000 — generally no external scrutiny is required by law, though your governing document may say otherwise
• Gross income over £25,000 and up to £1 million — an independent examination is normally sufficient
• Gross income over £1 million, or over £250,000 with gross assets above £3.26 million — a full statutory audit is required

An independent examination is a lighter-touch review than an audit and costs considerably less. Where income exceeds £250,000, the examiner must be a member of an approved professional body — which, as chartered certified accountants, we are. Always check your governing document and any funder conditions too: they can require an audit even when the law does not.

Charity accounts are not ordinary business accounts. Charities preparing accruals accounts must follow the Charities SORP, which requires a trustees' annual report, a statement of financial activities distinguishing restricted, unrestricted and endowment funds, and disclosures ordinary companies never make. Smaller unincorporated charities may be able to prepare simpler receipts and payments accounts instead — we advise which basis applies and prepare either.

Registered charities must also file an annual return with the Charity Commission within ten months of the financial year end, with the level of detail increasing with income, and charities above £25,000 filing their accounts and reports alongside it. Charitable companies file with Companies House as well, and CIOs file with the Commission whatever their income. We manage the full filing calendar so trustees never face a missed deadline on the public register.

Gift Aid adds 25p to every £1 donated by UK taxpayers — but only if the paperwork stands up. Claims need valid declarations, auditable records and awareness of the rules on benefits to donors; the Gift Aid Small Donations Scheme adds a further top-up on small cash and contactless donations. HMRC can and does claw back badly evidenced claims, so we review declarations and records before submitting, and help charities claim everything they are properly due.

Trustees carry personal legal duties: acting in the charity's best interests, managing resources responsibly, ensuring funds are applied within the charity's purposes, and keeping proper financial oversight. Restricted funds must be spent as the donor intended, and serious incidents must be reported to the Commission. We support treasurers and boards with management accounts, reserves policies and budgets that make those duties practical to discharge — not just words in a policy document.