Financial issues

Fact sheets

There have been significant changes within the charity sector recently.
Auto-enrolment is being phased in from October 2012 and will start with firms employing more than 120,000 workers. The new rules require careful consideration.
An audit is an assessment of the financial statements of an organisation to see whether or not those financial statements are accurate, complete, relevant and fairly presented.
It is important to keep records of all donations and declarations from donors to support the claims made. These will need to be presented if there is an audit by the Inland Revenue.
The government’s announcement at the end of 2007 brought a reduction in the basic rate of income tax from 22% to 20%.
How to reclaim tax on Gift Aid and other income
Reserves are an important aspect to any charity and need to be thought out thoroughly in order to organise a reserves policy and be able to correctly explain and report that policy.
When a donor gives or sells shares to a charity they can receive substantial relief on their Income Tax as well as exemption from Capital Gains Tax on gains they have made on shares.
The best and most effective way to find out about opportunities to submit tenders is to look at advertising in specialist trading publications. Information can also be found through tendering agencies that help aspiring contractors through the process. The additional expense of hiring a tendering agency may put charities off, but spending the extra money can be worth it if it wins new work.
As a treasurer, you have day to day responsibility for dealing with money. It is your job to keep accounts and report to the committee.

External factsheets & publications

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Charity funded equipment for medical, veterinary etc uses
An HMRC Publication
Gift Aid Made Simple
A Sayer Vincent Publication
Guide to Financial Management
An NCVO Guide
Guide to loans and other forms of finance
An NCVO Publication
Guide to Procurement & Contracting
An NCVO Publication
Guide to Trading
An NCVO Publication
Managing Finance & Risk
A Sayer Vincent publication
Reserves Policy Made Simple
A Sayer Vincent Publication
VAT increases 4 January 2011
An Eagle Consulting factsheet
VAT Made Simple
A Sayer Vincent publication

Useful links

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Caritas Data
CaritasData brand specialises in the analysis of the financial performance of UK charities and other not-for-profit organisations.
Chantrey Vellacott Accountants
Clients include professional partnerships, regulatory bodies, charities and other the not-for-profit organisations, public sector bodies and private clients
Charities Aid Foundation (CAF) Press Releases
Charity Finance Magazine
Charity Tax Group
CTG was set up in 1982 to make representations to Government on charity taxation and it has since become the leading voice for the sector on this issue. It has persuaded successive Governments to introduce a range of tax reliefs and has also campaigned successfully to protect existing concessions.
Gift Aid Information (DirectGov)
Gift Aid is an easy way for charities or Community Amateur Sports Clubs (CASCs) to increase the value of gifts of money from UK taxpayers by claiming back the basic rate tax paid by the donor.
HMRC - VAT: How it affects charities
HMRC VAT Guidance
PKF Accountants & Business Advisers
Sayer Vincent: Made Easy Guides
Unity Trust Bank
Wilkins Kennedy Chartered Accountants Newsletter