Begbies Chettle Agar: our services to charities and the not-for-profit sector
Charities and other not-for-profit organisations operate in an increasingly regulated environment. The Charity Commission’s Statement of Recommended Practice has doubled in size over the past 10 years and the impact of the new rules has placed a greater emphasis on corporate governance, risk management and the role of trustees.
The Charities Act 2006 modernised the definition of "charitable purposes" and provided new safeguards to uphold public trust in the charitable sector. The Charity Commission itself was given updated objectives and powers to support its role as an effective regulator.
Most charities recognise the need to demonstrate public accountability through their annual report and accounts but increasingly they need an adviser they can trust to keep abreast of all the changes and how these will affect them. At Begbies we understand the demands on charities and not-for-profit organisations to be accountable and can help them communicate financial information in a transparent, comprehensible way, meeting the requirements of the new SORP.
The UK now has one of the most favourable tax regimes for charitable giving in the world but trustees and management need to be aware of both the pitfalls and the opportunities of the tax system. Tax law allows charities a wide exemption from corporation tax, income tax and capital gains tax. However it is important to understand the limits and how to work with them. Charities are not exempt from VAT and this is an area requiring careful consideration. We help charitable organisations make the most of the benefits and minimise the burdens of the direct tax and VAT systems, ensuring that maximum funds are available to support charitable causes.
At Begbies Chettle Agar we act for a range of clients from grant-making trusts and foundations to heritage charities, clubs and associations. Our charity specialist, Katherine Dee, has been awarded the ICAEW Diploma in Charity Accounting (DChA), a qualification that recognises specific expertise and experience in charity accounting and finance.