As a Charity or a Not-For-Profit, we appreciate you want to satisfy your stakeholders that your organisation is well-managed. You also wish to spend their money wisely,  and so expect a cost-effective accounting service.  We like to work with charities and not-for-profits, so we can also return something to our community.

We have good experience. Our clients include local charities, e.g., helping underprivileged children, working men’s clubs, a branch of the Royal British Legion, local political parties, allotment societies, and management service companies. Management service companies are companies that, for instance, manage the communal parts for a block of flats. In addition, our staff are advisors for,  and trustees of,  local not-for-profits.

We have the specialist expertise to support your charity or not-for-profit. These days trustees face stiff obligations, and naturally we’ll attend trustee meetings, so your trustees have a  complete understanding of the accounts, our services and their obligations.  As you probably know, the Charities Commission released their “Statement Of Recommended Practice” (SORP) in 2005.  We use this document, as it recommends appropriate accounting and reporting practices for charities, unless a more specific SORP applies.  We’ll also asssist your trustees meet their obligations, for example:

Strategic Planning

The trustees are required to develop a strategic plan.  Like most plans, this describes the charity’s visionary aims, specific goals, and how they’ll be achieved.  Some analysis is required, for instance of current strengths and weakness, constraints and risks.  Topics would probably include curent personnel (including the trustees), premises, volunteers and fundraising.  In addition, the document should describe the corporate structure,  how volunteers will be used, fundraising policies and trading activities.

Controlling Risk

The Charities Act requires trustees to ensure there are risk mitigation procedures, and to report on these procedures in their annual report. Firstly, there has to be a process for identifying and recording risks. Once identified, trustees should define and agree an acceptable level of risk,  and mitigate the risk, if appropriate. Finally, the whole process has to be regularly reviewed.   Issues may include employment as well as health and safety.  Appropriate insurance policies may also be needed.

Fundraising

Clearly fundraising is the one thing that has to go right. This means there needs to be clear, realistic objectives broken down into targets and milestones, with responsibilities assigned to job holders.  There are a variety of fundraising mechanisms, which should be controlled – e.g, with external fund raisers, though street collections, collecting boxes, trading activities, and grants. We’ll also help maximise the income from gift aid.

Trading

Fundraising often includes some form of trading. However,  trading has to be separately controlled, and should be the responsibility of specific trustees.  We can advise on an appropriate  corporate structure, as there are Corporation Tax and VAT implications.   We’ll also advise what to do if your trading activities require funding, or Charity Commission approval for loans. Of course, appropriate risk mitigation strategies should also be in place.

Reserves

Your charity needs some reserves, and trustees should report on how they establish an appropriate level of reserves, and monitor those levels.  However, the original donation may be either an endowment, restricted or for general purposes, and the reserves should also be classified in this way.  In addition, the report should describe your charity’s investment policies.