Not for profit

The Charity Commission trustee guidance CC 26 says:-

HM Revenue & Customs (HMRC) has revealed that about 1000 charity users have registered with the new Gift Aid declaration service

The Charity Commission has issued a "Safer Giving Alert" following recent high profile cases

HMRC is to introduce a new online system for Gift Aid Claims, do you need to make changes to your gift aid records?

Fundraising and other costs are an emotive issue for charities

We are often asked "by what legal authority are the trustees and key management personnel of a charity obligated to disclose Related Party Information, especially family relationships, to the charity and also to the auditors?"

The recent changes in audit exemption thresholds will affect companies and LLP’s from financial year ending on or after 1 October 2012.

According to a recent survey by the Charity Commission the reserves policy reporting by charities has improved, however, this mainly relates to the biggest charities. Smaller charities still have a long way to go.

Summary of Lord Hodgson’s key recommendations

Working with trustees to complete risk assessments

Keep the right records to help you claim the correct amount of tax relief and pay the right amount of tax.

There will be no income tax relief cap on charitable giving

For the last few weeks there has been an increasing uproar over the government's plans to limit tax relief available to wealthy donors who support charities. Initially this was heralded as a 'tycoon tax' but concerns and opposition have been increasing as it is now realised that the charities themselves will lose valuable and most vital support from generous philanthropists.

HMRC Charities has updated the guidance on Gift Aid declarations and provided three new model declarations.

It seems that the key phrase ‘Big Society’ was overlooked in the years Budget speech. Charities are already struggling in the current economic climate, this years budget does not seem to help.

The Charities Act 2006 requires all charities have aims which are for the public benefit.

HMRC Issues revised model Gift Aid declaration and updated guidance

The Charities Act 1993 introduced the requirement for charity accounts to be independently audited. Independent Examinations (IE) were introduced as part of this for smaller charities.

A brief guide to what an Industrial Provident Society is from the Charities Team at Plummer Parsons

The Charities Act 2011 comes into force in March 2012

Do you want to be involved in a business that benefits the community - Have you considered setting up Community Interest Company (CIC)?

This week saw the issue of an inquiry report into a substantial donation made by Saif Gaddafi's Foundation to the London School of Economics (LSE).

Healthcare charities may get VAT relief if amendment to Health bill is passed.

What is a Community Interest Company?

Since 1 April 2008 the Charity Commission has been requiring all charities to prove that they are for Public Benefit

This year, Trustees’ Week is being held from Monday 31 October to Sunday 6 November.

Launch of a project to help charities review their financial controls and systems of risk management.

H M Revenue and Customs (HMRC) have recently confirmed that Roman Catholic mass offerings are eligible for gift aid.

The Charity Commission has published the advice set out below for people who want to support those affected by the drought and severe food shortages in East Africa.

From 1 April 2011, it is now compulsory for all companies to file their corporation tax returns and accounts with HMRC online.

Further to our blog of 11th July the Charity Commission have now updated their Compliance Toolkit: Protecting Charities from Harm to reflect the provisions of the Bribery Act 2010. We have copied the appropriate section below.

Great news for Charities and the "man in the street", cheques have been saved (for a little longer at least). An announcement from the head of the Payments Council (Mr North) said that plans to abolish cheques have been put on hold because an alternative paper-based system has not yet been set up to replace them.

Current developments

The Charity Commission in England and Wales has recently issued guidance regarding Charitable Incorporated Organisations (CIOs). The legal framework for CIOs was set out in the Charities Act 2006 but the exact details of how they will operate are contained within separate regulatory legislation.

From 1 March 2011, the VAT rules have altered with regard to the change in use of charity buildings. The changes affect charity buildings completed on or after 1 March 2011 which qualified for zero-rating on the grounds that they are to be used for a ‘relevant charitable purpose.’

Is this the most radical budget concerning charitable giving for 20 years?

George Osborne’s budget has introduced 5 specific changes to help charities. He described the changes as “the most radical reforms to charitable giving for more than 20 years". He said the reforms would support giving, "from the largest donations to the coins collected in the charity bucket”.

The 5th principle. In the Code issued in October 2010 the Charity Commission set out five bullet points by which the effective board will provide good governance and leadership by behaving with integrity.

Good governance and leadership is provided by board members working effectively together both as individuals and as a team.

The 3rd principle. Looking back over my previous two articles, it is all very well if indeed board members do understand their role and have the appropriate plans and systems in place to ensure delivery of organisational purpose, but unless the individual members of the board can work together both as individuals and a team, progress is bound to be severely hampered.

Congratulations to Colin, Manager in our Charity Department, who has been awarded a DChA -The Institute of Chartered Accountants Diploma in Charity Accounts. This now means that there are four members of the specialist charity team that hold this prestigious qualification!

The Charity Commission have now published their initial guidance regarding the Equality Act although they plan to release more detailed guidance later in 2011.

Plummer Parsons' charity department specialist Andrew Griffiths will be co hosting a free charity seminar at Bannatyne Spa Hotel, Hastings in January in conjunction with Rix and Kay Solicitors and Ten Sixty Six Enterprise.

The last week of October celebrated the tremendous contribution of around 900,000 people who volunteer as charity trustees. In its guidance 'The Essential Trustee', the Charity Commission stress the committment trustees must now make to their charity, involving hard and unpaid work and bearing numerous responsibilities.

The Government is providing £100 million Transition Fund for charities and other service delivery organisations in England that are facing cuts to their public sector funding.

To qualify your organisation will need to show:

Although I have been part of the charity team here at Plummer Parsons for something like 20 years, ‘governance’ is one of those words that I tend to avoid and wish had never been ‘invented’. Time was when, in accounts of charities, we used the time honoured phrase ‘management and administration costs’ but particularly since the charities SORP issued in 2005, the term ‘governance’ is the proper thing.

Here at Plummer Parsons we know that when it comes to Charities, every little helps. Sadly, the temporary extension to the gift aid scheme which was introduced in April 2008 comes to an end on 5 April 2011.

The Charity Commission has published its third annual report setting out lessons that need to be learned following the activities of charities over the past year.

Plummer Parsons Chartered Accountants has now published its September 2010 newsletter.

The last target date for the introduction of Charitable Incorporated Organisations (CIO's) was "early in 2010". Unfortunately this has been delayed again. The latest statement from the Charity Commission says:-

With chancellor George Osborne announcing the widely-predicted rise in the standard rate of VAT to 20% from 17.5%, accountants have warned that some businesses stand to lose more than others when the change takes place.

The Charity Commission is reminding charities and their trustees of all the services they can access online on the Commission’s website to avoid postal delays.

Two independent schools have recently failed the Charity Commission's (CC) initial public benefit assessments.