The Charity Commission’s recent review of charity accounts has found that just over half of charities are meeting the public benefit reporting requirements.
Just 70% of trustees’ annual reports and accounts in the public reporting review met the basic benchmark of user requirements.
The quality benchmark was based on recent research into trust in charities which found that ‘ensuring a reasonable proportion of donations make it to the end cause’ and ‘making a positive difference to the cause they work for’ were the most important factors for public trust and confidence in charities.
The main reasons why charities’ accounts submissions did not meet the basic benchmark were:
- failure to evidence that accounts had been subject to independent scrutiny by an auditor or independent examiner, as required by law
- not providing meaningful information about their charity’s purposes or the activities carried out to achieve those purposes
Also, just 52% of trustees’ annual reports in the public benefit reporting review met the public benefit reporting requirements.
Trustees are falling short on the requirements to explain activities carried out by the charity to further its purposes for the public benefit, and to provide a public benefit statement.
It is important that you explain the activities your charity undertakes and the impact you have. We want to see charity thrive, so charities must be clearer about who they help and what difference they are making.
Source: Charity Commission Newsletter Issue 62