# Accountants for Charities & Non-Profits

Pick My Accountant (https://pickmyaccountant.co.uk/accountants/for/charities/): Accountants for Charities & Non-Profits — Find UK accountants for charities, CICs and non-profits — SORP accounts, independent examination vs audit, Gift Aid claims and Charity Commission filings.

## Quick answer

Charity accounting runs on different rules: accounts follow the Charities SORP with fund accounting (restricted versus unrestricted money), charities over £25,000 income need independent examination and over £1m a full audit, annual returns go to the Charity Commission as well as (for charitable companies) Companies House, and Gift Aid can add 25p to every eligible donated pound — if the claims are right. A charity specialist keeps trustees compliant and funders confident.

## Key facts

- Income over £25,000: independent examination required; over £1m (or £250k with £3.26m assets): statutory audit
- Charities over £5,000 income must register with the Charity Commission and file an annual return within 10 months of year end
- Gift Aid adds 25% to eligible donations — and the Small Donations Scheme covers cash/contactless up to £30 without declarations
- Restricted funds must be tracked separately — spending restricted money on the wrong thing is a governance breach, not a bookkeeping slip
- Typical fees: small charities £59–£149/month on our benchmarks; independent examinations commonly £500–£2,500 as a one-off

## 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.

Fees: Small charities typically £59–£149/month on our benchmarks; independent examinations from ~£500 one-off.

## FAQs

**Q: Our charity income is under £25,000 — do we need an accountant?**
A: No examination is required, but you must still keep proper records, prepare receipts-and-payments accounts, and file the annual return. Many small charities use an accountant just for Gift Aid setup and a yearly once-over — a few hundred pounds well spent for trustee peace of mind.

**Q: What about CICs — are they treated like charities?**
A: No. Community Interest Companies file company accounts plus a CIC34 community-interest report to Companies House and pay corporation tax like any company (no charity tax reliefs, no Gift Aid on donations to the CIC). If tax reliefs matter, charitable status — or a charity/CIC pair — is the conversation to have.

**Q: Can trustees be paid to do the bookkeeping?**
A: Only if the governing document or the Charity Commission permits it — trustee payment rules are strict and breaches are personal governance failures. Routine practice is paying an external bookkeeper or accountant instead.

Updated: 2026-07-09

Source: https://pickmyaccountant.co.uk/accountants/for/charities/