Small charities spearhead charity SORP reforms

Small charity representatives will be included on the Charities Statement of Recommended Practice (SORP) committee for the first time in a bid to make the accounts of charities “more user-friendly” for the public, funders and others.

The additions, who include “organisations which work closely with charities and have a working knowledge of charity accounts, as well as greater membership from smaller charities”, also aim to make financial reporting easier for smaller not-for-profits.

It comes after the announcement of the SORP Governance Review published in June 2019, which found that “charity financial reporting must pay more attention to the users of charity reports and accounts”, while there is a need to offer “greater simplification of financial reporting requirements for smaller charities, which comprise the vast majority of users of the SORP”.

The Charity SORP is the set of accounting rules which govern charity financial reporting and accounting for charitable companies and larger charities with an income of £250,000 and more.

Commenting on the report, the Charity Commission for Northern Ireland’s Myles McKeown, who is Joint Chair of the SORP Committee, said: “The SORP has an important role to play in setting the accountancy standards for charities and, as highlighted by the recent governance review, it is vital the SORP develops in a way that meets modern expectations.

“One key way to achieve this is to build a committee with as wide a representational viewpoint as possible, in particular from the individuals, groups and organisations which have practical experience of using the SORP.”

Click here to learn more about the SORP Governance Review.

Does your charity need accounting support? For help and advice, get in touch with our expert team today.

Posted in Blog, News.