Charity Compliance Update – August 2017

Here’s your monthly charity sector compliance update – albeit following a quieter month for our regulators.

SORP 2019 unlikely

Since the launch of the Statement of Recommended Practice (SORP) 2015 FRS102, the Sector has been waiting with baited breath to see when the next update would happen.
It was widely anticipated that there would be a triennial review by the Financial Reporting Council (FRC) of new UK GAAP – with the first being in 2019. Any changes were expected to apply to accounting periods commencing on or after 1 January 2019. The Charities SORP was to be updated by the SORP committee at the same time.

According to Civil Society, the 2019 SORP update has been postponed, although the FRC will be continuing with its GAAP review.

  • Salient points of note are:
  • No major changes are expected as part of this review
  • Existing charities SORP to remain until further notice
  • SORP committee considering dropping separate categorisation of support costs on the basis that this adds little value to charity financial reporting
  • Any proposed changes to SORP will be drafted and circulated as part of a consultation exercise.

ICSA: The Governance Institute – Charity trustee recruitment guide

Guidance has been published for charity trustees to support them in recruitment for new board members. A survey by charity Getting On Board in May found that 74 per cent of respondents had difficulty recruiting trustees.

“Charities must ensure that trustees are appointed in the appropriate manner. Failure to do so could result in the trustee body being in breach of trust, and in some severe cases mean that none of the trustees are legally able to make any decisions as they were not appointed correctly.”

Download the guidance document here.

Charity Finance Group – A Brexit that works for everyone

The Charity Finance Group (CFG) published their latest report on 28 July 2017 in to the impact of a ‘clean Brexit’.

Highlights include considerations around:

  • Leaving EU could ‘unlock financial resources and cut red tape’
  • ‘Clean Brexit’ poses ‘less risk’ to voluntary sector than remaining in the Single Market and customs union
  • Reducing tax burden on charities could create 50,000 more jobs

Read the full report here.

HMRC – GASDS: How to claim top-up payments

On 21 July 2017 HMRC updated their guidance around claiming top-up payments under the Gift Aid Small Donations Scheme.

From 6 April 2017, you can claim on donations made using contactless technology, such as a contactless credit or debit card. Prior to 6 April 2017 top-up payments were only available on cash donations.

See the full updated guidance here to ensure that your clients are up to speed and not missing out on vital funds.

OSCR blog watch

The Scottish Regulator has published an Annual Return Submission Reminder – a helpful recap of filing deadlines with a handy downloadable guidance for completion of the Annual Return.

Consultations round-up

Here’s our monthly round-up of (and links to) key consultation opportunities and those closed, pending feedback.

The following consultation is currently open and inviting a response:

  • Charity Tax Group – Potential new Welsh taxes – opened 5 July 2017. The Welsh Government Finance Secretary will suggest that taxation could be used to change behaviours or to discourage activity which has negative social impacts. Email FinancialReformMailbox@wales.gsi.gov.uk to get involved.

The following consultations are closed with feedback analysis pending – watch this space for an update in future briefings:

Charity Commission for England and Wales:

Consultation responses have been published from the following since last month’s round-up: