Minor changes in financial reporting thresholds announced
The OTS has published its response to the consultation Financial Thresholds in the Charities Acts – Proposals for Change, which it undertook jointly with the Charity Commission...
A total of 58 responses were received from a wide range of umbrella and representative bodies as well as individuals, charities and professional advisers. While the responses were broadly supportive of the attempt to reduce the regulatory burden for charities and their trustees, there was no overall sense that the charity-specific regulation imposed an undue burden on charities. Critics of some of the proposals observed that potential savings from less regulation were not sufficient to balance the possible impact on sector accountability and transparency. The main changes include:
- The annual accounts and trustee annual report submission income thresholds have increased to £25,000.
- The threshold for external scrutiny of accounts has been raised from £10,000 to £25,000.
- The accruals accounts preparation threshold has increased from £100,000 to £250,000 – meaning that 11,700 charities will be able to produce accounts in the simpler less expensive R&P format (see page 4, Caritas, Issue 10, September 2008).
- If a person earns more than £10 a day and £1,000 a year from fundraising they are deemed a professional fundraiser. This doubles the previous thresholds.
- The qualified right to refund in connection with broadcast appeals applies to a minimum amount that is now doubled from £50 to £100.
www.cabinetoffice.gov.uk/third_sector/Consultations/completed_consultations/financial
_thresholds_charities_act.aspx
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