6 August 2021
Helpful SORP examples
Two SORP examples of Financial Statements have been published to illustrate how a charity can disclose the impact of the COVID-19 pandemic on the charity, its activities, income, financial position and use of government assistance. The examples are for:
- The Rosanna Grant Trust – this example illustrates the impact of the pandemic on a grant making charity
- Arts Theatre Trust- this example illustrates the impact of the pandemic on a charitable company limited by guarantee, operating a theatre and operating with one trading subsidiary.
You can read more at https://www.charitysorp.org/example-trustees-annual-reports
HMRC have issued new guidance which allows the waiver of a charity’s debt (such as refunds or loan repayments) to be eligible for Gift Aid relief. This is so long long as the waiver is clear and irrevocable and all other gift aid rules have been met.
Previously the funds had to be returned to the donor first and then donated back to the charity. HMRC introduced a temporary concession relating to the cancellation of charity events due to COVID-19. This has now been made permanent and extended to include loan repayments.
For gift aid purposes the date of the donation will be the date of the waiver and not the date of the original payment to the charity. A gift aid declaration will need to be obtained from the donor.
You can read more here
Fresh (COVID-19) governance guidance
The government have updated their COVID-19 guidance for the charity sector. The following sections have been updated:
- Meetings – the advice for trustees on holding meetings remotely and postponing or cancelling meetings has been updated in light of the easing of restrictions in England and Wales.
- Annual return and accounts – the Charity Commission have set out their new approach to annual return filing extensions with plans to bring these to an end. Between 1 July 2021 and 30 September 2021, charities with an imminent filing date who are unable to meet their filing obligation due to COVID-19 related issues can still apply for a new filing extension.
Find out more here.
Fundraising Regulator publishes new resources for fundraisers and the public
The Fundraising Regulator, who recently celebrated their 5th anniversary, have published a range of new resources and guidance for fundraisers and the public:
- Coronavirus (COVID-19): Supporting safe and responsible fundraising – As restrictions begin to ease across England and Wales charities and fundraisers still need to ensure that they continue to carry out fundraising activities in a safe and responsible way. This guidance gives fundraisers the tools to assist with this. Read it here.
- Key behaviours expected of fundraisers: guidance for fundraisers – the guidance helps fundraisers in the UK to comply with the Code of Fundraising Practice and to uphold its four key values: open, honest, respectful and legal. Read it here.
- Key behaviours you should expect from fundraisers: advice for the public – this guidance is aimed at members of the public to give them an understanding of what they can expect from contact with fundraisers. Read it here.
- Charity bags: guidance for fundraisers – this provides guidance to charities and fundraisers to ensure they understand the legal requirements and regulatory standards when distributing and collecting charity bags. Read it here.
Charity Reporting and Accounting: The Essentials
It certainly seems to be the season for guidance updates and The Charity Commission is no exception. They have updated Charity reporting and accounting: the essentials November 2016 (CC15d), to include the use of electronic signatures on the Trustees Annual Report, Balance Sheet and Independent Examiners Report.
Unless a charity’s governing document has specific requirements about using handwritten or electronic signatures, a charity may use electronic versions of a signature. For example, this can be a typed signature or a scanned version of a handwritten signature. Read more here
CAN WE HELP?
If your Charity has questions or concerns relating to the latest guidance, please do get in touch with our specialist team. You’ll find their details on the right of this page.
Specific advice should be obtained before taking action, or refraining from taking action, in relation to this summary. If you would like advice or further information, please speak to your usual Shipleys contact.
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