Only 12% of charities comply with reserve rules
- 26 Oct
According to research by the Charity Commission, only 12% of charities explain how reserves figure is calculated.
This is in fact a big improvement on the figures prior to that in 2006, where only 40% even had a reserves policy.
The figure now is 59% have a reserves policy with annual incomes between £25,000 and £250,000, and 91% of charities with incomes of more than £500,000 per year did.
However, this still needs to be improved as only 12% explain where this figure comes from, and 17% overstated the level of their reserves.
The report says:
For example, most of the statements reviewed do not contain an adequate description of the policy even though it is a legal requirement so to do.
Also, less than two thirds state what their target level is, and less than half provide an explanation of what the charity's levels of reserves are and why they are held. Even fewer charities explain how their reserves figure is calculated.
Using Reserves in Tough Times
At a time when so many charities say they are drawing on their reserves to survive, it is key that the figures are correct and the trustees are aware of the financial situation, as it can only go on so long before the reserves are dry.
In some cases, charities have actually used the tougher times to build up their reserves, even when cutting charitable expenditure following reductions in funding, to ensure they are backed up.
The Charity Commission are also getting tougher on charities that fail to file their accounts on time. The rise in trustees doing this has encouraged them to consider penalising those that do not comply with their legal duty.
Figures released by the commission from 400 charities that filed the accounts late from 2011, show that more than a third were signed off before their filing date, but had not been passed to the regulator on time.
The commission also found that nearly a quarter of these charities with incomes of more than £250,000 filed late accounts in each of the previous five financial years.
- 20 Apr
CHARITY WORKS TOWARDS A NATIONAL PLAN TO END HOMELESSNESS
Prime minister, Theresa May and the first ministers of Scotland and Wales congratulated "Crisis" on its anniversary and gave an assurance to work hand in hand with them while on a quest to eradicate...
- 30 Jan
THE FATE OF EU-FUNDED PROJECTS AND ITS EFFECT ON CHARITY SERVICES
In March 2016, forecasts of growth were low and the government's own estimates put the Treasury's coffers £122bn poorer by 2020.The supreme court has also determined that MPs must approve the...
- 15 Jun
INCREASE IN THREATS OF EVICTIONS FROM HOMES
After analysing statistics from the Ministry of Justice, the housing charity (Shelter) found the following:In the past year, the number of people seeking advice from 'Shelter' on their eviction...
- 07 Jun
CHARITIES, THEIR BRANDS, BENEFICIARIES AND HOW TO EFFECT CHANGE
"Most charities exist because their founders believed the future could be different if they mobilised supporters", but Mandy Johnson of the Guardian believes"This vision is being lost."Charities are...
- 17 Apr
Support for veterans to return to work
Places for People hopes to support veterans into the workplace and also benefit from the skills and experience they have to offer, reports 24dash.All veterans applying for jobs in Places for People's...
- 26 Jan
Charity registers as social landlord
It has now registered its housing department as a housing association, Inside Housing reports.The charity set up Golden Lane Housing (GLH) in 1998, which has now registered to be a social landlord...
- 14 Jan
Charity to develop app for people with disabilities
The funding will enable the charity to develop and test the free app, called FlyCatcher, which could be on the market by 2016.The app uses iBeacon technology to send information through smartphones...
- 14 Jan
Young people’s health harmed by fuel poverty
The Department of Energy and Climate Change have reported that 10% of households in England were in fuel poverty.The charity, Turn2us have stated that 75% of the 2,060 adults in the PRS who were...
- 08 Jan
Homelessness in Scotland
Shelter Scotland stated that this percentage is ‘disproportionate' to the sector's size which makes up 13% of all housing in Scotland, Inside Housing reports. It was also mentioned that the number...
- 07 Jan
Homelessness an ‘increasing trend’ in Wales
Cais blames the lack of options available to individuals due to the change in the type of support that can be offered.The Chief Executive of Cais, Clive Wolfendale has described the problem of...
Revenue Optimisation "Coventry Mind has recently worked through a programme of Housing Benefit optimisation with Support Solutions and in particular their specialist Danny Key. Throughout the whole process Danny demonstrated that he has excellent knowledge of the subject and was able to put forward a convincing case for the increase in funding to the Housing Benefit team. Coventry Mind has already and will continue to recommend Support Solutions and in particular this service to other organisations." Steven Hill - Director of Central Services