Accountants for Charities & Non-Profits

SORP and fund accounting: why charity accounts look different

Charity accounts (over £250k income, or any charitable company) follow the Charities SORP: a Statement of Financial Activities instead of a profit and loss, funds split between restricted, unrestricted, and endowment, and a trustees' annual report telling the public-benefit story. Funders read these documents before granting — accounts that a generalist forced into company format cost charities money in lost grants, not just compliance risk.

Examination, audit, and who can do what

Between £25,000 and £1m income most charities need an independent examination — cheaper and lighter than audit, but over £250k the examiner must hold a recognised qualification (ICAEW, ACCA, and others). Over £1m income it's a statutory audit by a registered auditor. Booking the right level — and not paying audit prices where examination suffices — is an easy four-figure saving trustees often miss.

Gift Aid: free money, frequently left unclaimed

Gift Aid is worth 25% on eligible individual donations, claims can go back four years, and the Small Donations Scheme adds top-ups on small cash and contactless collections without declarations. The catch is evidence: valid declarations, an audit trail per donor, and care with sponsorships, memberships, and events where benefits to the donor can break eligibility. Specialists routinely find unclaimed back-years in a first review — often funding their fee for a decade.

From the register

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Frequently asked questions