If a charity is to achieve its aims then the trustees need to ensure that assets are properly used, that its funds are spent effectively and its financial affairs are well managed. This guidance CC8 looks at various areas of financial activity and provides examples of internal financial controls that are commonly used to reduce the risk of loss.
Starting the Financial Year on the Right Foot – Advice from the Charity Commission: Robust financial management is vital so charities can protect themselves against financial difficulties or abuse, and meet the needs of their beneficiaries. There’s no better time than the start of the new financial year to assess your charity’s financial situation and financial controls, to see how you can improve them. Two useful documents: Charity Finances: Trustee Essentials CC25 and 15 Questions to Ask (a great tool to check you’ve got the basics covered and identify priorities for the coming year).
The Common Reporting Standard – What Does it Mean for Small Charities? With the Common Reporting Standard (CRS) coming into full force in the UK this year, charities need to be aware how they might be affected by the new mechanism. Be informed, read this blog.
Here’s a template that might be useful to report your monthly Management Accounts. Simple Accounts
This toolkit takes you on a journey to understand the process you to go through to develop your Reserves Policy. There are a number of reasons why you may need to hold reserves. Reserves Toolkit
VAT Made Simple
VAT is a sales tax charged by businesses on certain goods and services they provide – find out more.
Charities often tell us that they struggle to raise funds for core costs. This Full Cost Recovery Model (updated July 2016) might help you to solve this problem.
VAT is a sales tax charged by registered businesses on certain goods and services they provide. You have to add VAT to your customer invoices (‘output VAT’) and pay this VAT over to HM Revenue & Customs (‘HMRC’). Sound confusing? This simple guide will help you understand.
It’s important for small charities to ensure they make use of all available sources of income and so let’s not forget Gift Aid. Here’s a simple to understand HMRC Gift Aid Info-graphic that might be useful. Also why not keep up to date and explore HMRC charity news and updates Also check out: Gift Aid: The basics and the Gift Aid Toolkit: introduction. More Gift Aid guidance and resources including information on the Small Donations Scheme: Charities Online: Making your Gift Aid repayments quicker and easier and Gift Aid Small Donations Scheme