0121 647 5030

Charity & Non-profit Accountants

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Nurturing finances, empowering charities with expertise

Fraser Russell provides specialist services to charities and community interest companies for audits, accountancy, independent examination, bookkeeping, tax and consultancy.

Having closely worked with charities for a number of years, we understand how very important it is to have an accountant who actually understands charity finances. We have worked with charities in various sectors like health, arts and culture, international NGO’s, religion, women and children welfare, housing, sports and education.

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Charity Accountants
we help with

Charity accounts and independent examination

  • Prepare year end accounts for charities in SORP format where required
  • Conduct independent examination on the accounts
  • Undertake audit of the year end accounts
  • Filing annual returns at Charity Commission and Companies House
  • Advise trustees on the requirements of trustees' report
  • Corporation tax calculations and returns
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Phone: 0121 647 5030
Email: solutions@fraserrussell.com
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we help with

Charity bookkeeping

  • Meaningful and error free charity bookkeeping the way it should be done for all charities
  • Setting up bookkeeping software and providing training to staff
  • Preparing instant monthly fund reports showing spend and balance on each fund
  • Handling and running payroll
  • Recording VAT and file returns including managing partial exemption scheme
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we help with

Charity financial planning and management

  • Preparing monthly management accounts with necessary detail to enable trustees to make financial decisions
  • Providing jargon free summaries on management accounts with KPI's (Key Performance Indicators)
  • Attending trustee meetings to discuss management accounts of the charities
  • Tracking and monitoring restricted income and expenditure
  • Preparing and monitoring budgets and cash flow forecasts

We can also 
help with

Charity governance and advice

  • Advise trustees on their roles and responsibilities
  • Helping trustees to identify inefficiencies in financial and accounting procedures
  • Helping trustees to set up adequate and effective internal control systems

Charity formation

  • Deciding which structure best suits your needs, i.e. charity, charitable company or C.I.C
  • Setting up a new charity
  • Assisting you with completing the necessary registration forms
a few of our

Frequently asked questions

Except for NHS charities, only those charities with gross income of more than £25,000 in their financial year are required to have their accounts independently examined or audited – below that threshold, an external scrutiny of accounts is only needed if it is required by the charity’s governing document.

Precisely what type of scrutiny is needed depends on the income and assets of the charity? Broadly speaking, an independent examination is needed if gross income is between £25,000 and £1 million and an audit is needed where the gross income exceeds £1 million. An audit will also be needed if total assets (before liabilities) exceed £3.26 million, and the charity’s gross income is more than £250,000.

If your income is between £25,000 and £1 million.

Certainly, as an accountant providing charity services, we can assist your organisation, if required, with grant applications and reporting to funding bodies in the following ways:

  • Grant application support: We can guide your charity through the grant application process, helping you understand the specific requirements and ensuring that all necessary financial documentation is prepared accurately.
  • Financial proposal development: We can collaborate with your team to develop detailed financial proposals that align with the grantor’s guidelines, providing a clear and transparent budget for the proposed project or initiative.
  • Budgetary planning: Assisting in the creation of comprehensive budgets that align with the grant requirements, ensuring that all anticipated expenses are accounted for and justifiable.
  • Financial reporting: Providing support in the preparation of financial reports required by funding bodies, ensuring compliance with their reporting standards and guidelines.
  • Grant compliance assurance: Regularly reviewing your charity’s activities and expenditures to ensure ongoing compliance with the terms and conditions set forth by the funding bodies.
  • Customised financial statements: Generating financial statements tailored to the specific reporting needs of different grantors, presenting financial information in a format that meets their requirements.
  • Timely submission: Ensuring that all financial reports and documentation are submitted within the stipulated deadlines to maintain a positive relationship with funding bodies.
  • Communication with funders: Facilitating communication with funding bodies regarding financial matters, addressing any queries they may have and providing additional information as needed.
  • Risk management: Identifying and mitigating financial risks associated with grant-funded projects, helping to maintain financial stability throughout the grant period.
  • Grant monitoring and evaluation: Collaborating with your charity to establish effective monitoring and evaluation processes, ensuring that the grant-funded activities are on track and delivering the intended impact.

By offering comprehensive support in these areas, we aim to enhance your charity’s ability to secure funding, maintain strong relationships with funding bodies, and demonstrate financial accountability and transparency.

Certainly, depending on which of our services you require, we can attend your Annual General Meeting (AGM) to present the annual accounts if required. Our commitment can extend beyond just preparing financial documents; we understand the importance of transparency and effective communication in the context of your charity’s financial performance.

Typically, the following is how we approach these meetings and, again, depends on which of our charity services you require:

  • Preparation: Before the AGM, we can ensure that the annual accounts are accurately prepared, comply with regulatory standards, and provide a clear representation of your charity’s financial position.
  • Presentation materials: We can create clear and concise presentation materials to accompany the annual accounts, helping to communicate key financial information to the attendees in an easily understandable format.
  • Explanation and clarification: During the AGM, we can present the annual accounts, offering a thorough explanation of financial statements, highlighting key figures, and addressing any questions or concerns raised by the attendees.
  • Q&A session: We can be available for a question-and-answer session, ensuring that members or stakeholders have the opportunity to seek clarification on any financial matters related to the charity.
  • Adherence to regulatory standards: Throughout the presentation, we can emphasise the charity’s adherence to relevant regulatory standards, showcasing the commitment to financial transparency and accountability.
  • Tailored communication: We can tailor the presentation to the audience, recognising that not all attendees may have a background in finance. The goal is to make the financial information accessible and comprehensible to all stakeholders.
  • Post-AGM support: Following the AGM, we can remain available to address any additional queries or concerns that may arise as a result of the presentation.

By participating actively in the AGM and presenting the annual accounts, our aim can be to contribute to a positive and transparent financial reporting process, fostering trust and confidence among members, stakeholders, and the wider community associated with your charity.

We could take several steps to maximize tax benefits for your charity. Here’s, typically, what is involved:

  • Charitable status review: Ensure that your charity is correctly registered and has obtained the appropriate charitable status with HM Revenue & Customs (HMRC) to qualify for tax benefits.
  • Gift Aid optimisation: Promote and maximise Gift Aid declarations for donations, as this allows your charity to claim an additional 25p for every £1 donated by UK taxpayers. Ensure proper record-keeping and compliance with Gift Aid regulations.
  • Tax-effective fundraising: Provide guidance on structuring fundraising activities to maximise tax benefits, such as making sure that events and campaigns are structured in a way that optimises tax relief for donors.
  • VAT efficiency: Review the charity’s activities to determine the optimal VAT treatment. This includes identifying opportunities for VAT exemptions and recovering VAT on eligible expenses.
  • Trading subsidiaries: Explore the possibility of setting up trading subsidiaries for certain income-generating activities to ring-fence taxable trading profits from the charity’s core activities.
  • Investment planning: Provide advice on tax-efficient investment strategies, considering the tax implications of different types of investments and helping your charity make informed decisions about its financial portfolio.
  • Social Investment Tax Relief (SITR): Explore eligibility for Social Investment Tax Relief for investments made to support social enterprises, providing potential tax relief for investors in your charity.
  • Community Amateur Sports Club (CASC) Status: If applicable, explore the benefits of obtaining Community Amateur Sports Club (CASC) status, which can provide certain tax benefits similar to those available to charities.
  • Corporate Gift Aid: Ensure that your charity leverages Corporate Gift Aid for donations received from companies, allowing the charity to claim additional tax relief.
  • Tax-effective employee benefits: Review and implement tax-efficient employee benefits, such as salary sacrifice schemes, to maximise the financial benefits for both the charity and its staff.
  • Research and development (R&D) tax credits: Explore the potential eligibility for R&D tax credits, which may apply to certain innovative projects or activities undertaken by your charity.
  • Tax planning reviews: Conduct regular tax planning reviews to stay abreast of changes in tax laws and regulations, ensuring that your charity is always positioned to take advantage of available tax benefits.

By implementing these steps, we aim to optimise your charity’s tax position, allowing it to benefit from available tax reliefs and incentives while ensuring compliance with relevant regulations.

The frequency of providing financial reports and updates for your charity would depend on various factors, including the size of the charity, its activities, and the specific needs of the trustees and management. However, a general approach might involve the following:

  • Regular reporting schedule: Establish a regular reporting schedule, such as monthly or quarterly, to provide consistent updates on the financial performance of the charity.
  • Annual financial statements: Prepare and present annual financial statements, including the Statement of Financial Activities (SoFA), Statement of Financial Position, and any other required reports, in accordance with Charity Commission regulations.
  • Budget vs. actual reports: Provide regular budget vs. actual reports to compare planned financial activities with the actual outcomes, helping trustees and management assess the charity’s financial health and adherence to budgetary goals.
  • Cash flow statements: Include regular cash flow statements to highlight the inflow and outflow of funds, allowing for proactive cash management and addressing any liquidity concerns.
  • Narrative reporting: Accompany financial reports with narrative reporting to provide context and explanation for financial figures, helping non-financial stakeholders understand the impact of financial activities on the charity’s mission.
  • Key Performance Indicators (KPIs): Identify and track key performance indicators relevant to the charity’s financial goals, allowing for a more comprehensive assessment of its overall performance.
  • Ad-Hoc reports: Provide ad-hoc reports as needed, especially in response to specific queries or when significant financial events occur, ensuring transparency and timely communication.
  • Trustee meetings: Coordinate with trustee meetings to coincide with the presentation of financial reports, allowing for direct interaction, clarification of any queries, and discussion of financial strategies.
  • Strategic planning sessions: Participate in strategic planning sessions to align financial reporting with the charity’s broader goals and to ensure that financial strategies support the organisation’s mission.
  • Compliance updates: Regularly update trustees on any changes in Charity Commission requirements or relevant accounting standards that may impact financial reporting and compliance.
  • Training and capacity building: Offer training sessions for trustees and relevant staff to enhance their financial literacy, enabling them to better understand and engage with financial reports.

The frequency and format of financial reporting should be tailored to meet the specific needs and preferences of your charity’s leadership. Open communication will be maintained to address any evolving requirements or changes in reporting preferences. The goal is to provide trustees and management with timely, accurate, and relevant financial information to support informed decision-making and ensure the financial health of the charity.

Ensuring that your charity remains compliant with the Charity Commission requirements is one of our key priorities. Typically, the following is our approach and depends on which of our charity services you require:

  • Continuous monitoring: Regularly monitor changes in Charity Commission regulations, guidelines, and reporting requirements to stay informed about any updates that may affect your charity.
  • Risk assessment: Conduct a thorough risk assessment to identify potential areas of non-compliance. This includes reviewing governance structures, financial processes, and operational activities.
  • Customised compliance plan: Develop a customised compliance plan tailored to the specific needs and activities of your charity. This plan would outline key milestones, reporting deadlines, and actions required to maintain compliance.
  • Documentation management: Ensure that all necessary documentation, including governing documents, policies, and financial records, is properly maintained and readily accessible for inspection by the Charity Commission.
  • Training and awareness: Provide training to key personnel, including trustees and relevant staff, on Charity Commission requirements. This ensures that everyone involved is aware of their responsibilities and the importance of compliance.
  • Regular internal audits: Conduct regular internal audits to assess the charity’s processes and controls, identifying and addressing any areas of concern before they become compliance issues.
  • Advisory services: Offer ongoing advisory services to trustees and key decision-makers, providing guidance on compliance matters and addressing any queries or concerns they may have.
  • Preparation of annual accounts: Prepare accurate and timely annual accounts in accordance with the Charity Commission’s Statement of Recommended Practice (SORP) and other relevant accounting standards.
  • Submission of annual returns: Ensure the timely submission of annual returns and other required documents to the Charity Commission, including updates on any changes to the charity’s details or governance structure.
  • Communication with the Charity Commission: Establish open lines of communication with the Charity Commission, promptly addressing any queries or requests for information and keeping them informed about significant changes within the charity.
  • Stay informed on good governance practices: Stay informed on best practices related to good governance within the charity sector, incorporating these into the charity’s operations to enhance overall compliance.
  • External reviews: Periodically engage external reviews or independent audits to provide an additional layer of assurance regarding compliance and governance.

By implementing these measures, we aim to ensure that your charity not only meets but exceeds the Charity Commission requirements, fostering a culture of transparency, accountability, and best practice within the organisation.

Our approach to handling the preparation and submission of your charity’s annual accounts and reports, can involve a structured and comprehensive process, depending on the level of support required from us. Here’s an overview:

  • Initial consultation: Begin with an initial consultation to understand the unique aspects of your charity, its activities, and any specific reporting requirements or challenges.
  • Review of financial records: Conduct a thorough review of your charity’s financial records, ensuring accuracy and completeness. This includes examining income and expenditure, assets and liabilities, and any restricted funds.
  • Compliance assessment: Assess the charity’s compliance with the Charity Commission’s Statement of Recommended Practice (SORP) and other relevant accounting standards. Identify any areas that may require adjustment or clarification.
  • Adjustments and reconciliations: Make necessary adjustments and reconciliations to address any discrepancies or inaccuracies in the financial records. This ensures that the accounts reflect a true and fair view of the charity’s financial position.
  • Preparation of financial statements: Prepare the financial statements in accordance with the applicable SORP, presenting a clear breakdown of income, expenditure, assets, and liabilities. This includes a detailed narrative to provide context and transparency.
  • Review and approval: Present the draft financial statements to the charity’s trustees for review and approval. Address any questions or concerns they may have and incorporate their feedback.
  • Annual report integration: Integrate the financial statements into the broader annual report, providing a comprehensive overview of the charity’s activities, achievements, and financial performance during the reporting period.
  • Narrative reporting: Enhance the annual report with narrative reporting, ensuring that financial information is presented in a way that is accessible to a diverse audience, including donors, beneficiaries, and other stakeholders.
  • Submission to Charity Commission: Ensure the timely and accurate submission of the annual accounts and reports to the Charity Commission, meeting the regulatory deadlines and requirements.
  • Communication with trustees: Maintain open communication with trustees throughout the process, providing regular updates, addressing queries promptly, and ensuring their confidence in the accuracy and completeness of the financial reporting.
  • Post-submission support: Offer post-submission support, addressing any follow-up queries from the Charity Commission and providing additional clarification or documentation as needed.

By following this structured process, I aim to streamline the preparation and submission of your charity’s annual accounts and reports, facilitating compliance, transparency, and effective communication with stakeholders.

We can offer extensive assistance with budgeting and financial planning for your charity and may include:

  • Needs assessment: Conduct an initial needs assessment to understand the specific goals, activities, and financial requirements of your charity.
  • Collaborative planning: Work closely with key stakeholders, including trustees and management, to collaboratively develop a comprehensive budget aligned with the charity’s strategic objectives.
  • Income projection: Project and analyze sources of income, including grants, donations, and other fundraising activities, to create a realistic and sustainable revenue forecast.
  • Expenditure planning: Break down anticipated expenses by category, ensuring that all operational, programmatic, and administrative costs are considered. This includes salaries, overheads, and project-specific expenditures.
  • Cash flow management: Implement effective cash flow management strategies to ensure that the charity maintains sufficient liquidity to meet its financial obligations.
  • Scenario analysis: Perform scenario analysis to assess the potential financial impact of different variables, allowing for informed decision-making and risk mitigation.
  • Budget monitoring and reporting: Establish a system for monitoring the budget throughout the fiscal year, providing regular reports to trustees and management. This allows for proactive adjustments if there are significant deviations from the original plan.
  • Grant and funding strategy: Develop a strategy for securing grants and other funding opportunities, aligning them with the charity’s mission and financial needs.
  • Reserves policy: Assist in the development of a reserves policy, ensuring that the charity maintains an appropriate level of financial reserves to mitigate risks and uncertainties.
  • Compliance with regulations: Ensure that the budgeting process aligns with Charity Commission regulations and accounting standards, providing a foundation for transparent financial reporting.
  • Training and capacity building: Provide training to trustees and relevant staff on financial management best practices, empowering them to actively participate in and understand the budgeting process.
  • Long-term financial planning: Work on long-term financial planning, considering the charity’s strategic objectives and potential changes in funding sources or programmatic activities.
  • Grant application support: Assist in the preparation of budgets for grant applications, ensuring alignment with the charity’s overall financial plan.

By offering these services, we aim to support your charity in establishing a robust financial foundation, promoting sustainability, and facilitating effective decision-making through sound budgeting and financial planning practices.

Staying informed about changes in tax laws and accounting regulations affecting charities is crucial for ensuring compliance and offering effective financial management. Here’s how we would approach staying updated:

  • Continuous Professional Development (CPD): Engage in continuous professional development programs to stay abreast of the latest developments in accounting standards, tax laws, and regulations relevant to the charity sector.
  • Membership in professional bodies: Maintain active membership in professional accounting bodies, such as the Institute of Chartered Accountants in England and Wales (ICAEW) or other relevant organizations. These bodies often provide updates, training, and resources to keep members informed.
  • Regular training and seminars: Attend regular training sessions, seminars, and workshops. These events often cover updates on tax laws, accounting standards, and regulatory changes affecting charities.
  • Subscription to updates and publications: Subscribe to newsletters, updates, and publications from regulatory bodies, government agencies, and professional organisations. These sources often disseminate information about changes in tax laws and accounting regulations.
  • Government and Charity Commission Communications: Monitor official communications from HM Revenue & Customs (HMRC), the Charity Commission for England and Wales, and other relevant government bodies. These organisations often publish guidance and updates that are critical for compliance.
  • Regular review of legislation: Conduct regular reviews of relevant legislation and statutory instruments to identify any changes or proposed amendments that may impact charities.
  • Collaboration with legal professionals: Collaborate with legal professionals specialising in charity law to gain insights into the legal aspects of changes affecting charities and to ensure a comprehensive understanding of the regulatory landscape.
  • Networking and forums: Participate in networking events and online forums where professionals discuss changes in tax laws and accounting regulations. Sharing insights with peers can provide valuable perspectives and enhance awareness.
  • Industry conferences: Attend industry conferences related to charity finance, accounting, and governance. These events often feature experts who discuss current issues and changes in the regulatory environment.
  • Engagement with regulatory consultations: Participate in consultations initiated by regulatory bodies. Providing feedback during consultations allows professionals to contribute to the shaping of new regulations and gain insights into upcoming changes.
  • Regular internal training for staff: Implement regular training sessions for internal staff to ensure that the entire team is informed about changes in tax laws and accounting regulations affecting charities.
  • Utilisation of professional networks: Leverage professional networks and contacts to exchange information and insights regarding changes in the regulatory landscape.
  • Online resources and webinars: Explore online resources, webinars, and e-learning platforms that offer specialized content on charity accounting and taxation. These platforms often provide accessible updates and training.

By adopting a multifaceted approach that combines ongoing education, collaboration with professionals, and active monitoring of relevant sources, I ensure that I am well-equipped to stay informed about changes in tax laws and accounting regulations affecting charities. This commitment to staying updated helps in providing accurate and compliant financial services to charities.

Ensuring transparency and accountability in financial reporting for your charity is a fundamental aspect of our service. Here’s an outline of the key measures we may implement:

  • Clear financial policies: Develop clear and comprehensive financial policies that outline the principles, procedures, and controls governing your charity’s financial management. This provides a foundation for transparent and accountable practices.
  • Compliance with SORP: Adhere to the Statement of Recommended Practice (SORP) for accounting and reporting by charities. Staying compliant with SORP ensures that your charity’s financial statements are in line with recognized accounting standards for the sector.
  • Regular financial reporting: Establish a regular schedule for financial reporting, providing trustees and stakeholders with consistent updates on the charity’s financial performance. This can include monthly or quarterly reports, depending on the needs of the organisation.
  • Comprehensive annual reports: Prepare comprehensive annual reports that not only include financial statements but also provide narrative reporting. This narrative should highlight the impact of financial activities on the charity’s mission and objectives, offering a broader context for stakeholders.
  • Transparent budgeting: Involve trustees in the budgeting process, ensuring transparency in the allocation of resources. Provide a detailed breakdown of income and expenditure, and regularly report on budget vs. actual performance.
  • Independent examinations or audits: Encourage and facilitate independent examinations or audits of your charity’s financial records. External scrutiny enhances credibility and provides assurance to stakeholders regarding the accuracy and transparency of financial reporting.
  • Stakeholder communication: Maintain open and transparent communication with all stakeholders, including trustees, staff, donors, and beneficiaries. Regularly share financial updates, respond to queries promptly, and address concerns transparently.
  • Accessible financial information: Ensure that financial information is easily accessible to trustees and stakeholders. This includes providing clear and understandable financial statements, reports, and any other relevant documentation.
  • Internal controls: Implement robust internal controls to prevent errors and fraud. Regularly review and strengthen these controls to maintain the integrity of financial information.
  • Conflict of interest policies: Establish and adhere to conflict of interest policies to prevent any financial decisions that could be perceived as biased or not in the best interest of the charity.
  • Whistleblowing mechanism: Implement a whistleblowing mechanism to encourage staff or stakeholders to report any concerns related to financial mismanagement or unethical practices.
  • Training for trustees: Provide training for trustees on financial matters, ensuring they have the knowledge and skills to understand and oversee the charity’s financial activities.
  • Transparency in fundraising: Clearly communicate how funds are raised and utilised. This includes providing information on fundraising costs, ensuring donors understand how their contributions support the charity’s mission.
  • Regular review of financial processes: Conduct regular reviews of financial processes to identify areas for improvement and ensure ongoing compliance with regulations.
  • Compliance with regulatory requirements: Stay informed about and comply with all regulatory requirements set forth by the Charity Commission, ensuring that your charity operates within the legal and ethical framework.

By implementing these measures, we aim to establish and maintain a culture of transparency and accountability in financial reporting for your charity, fostering trust among stakeholders and demonstrating a commitment to responsible financial management.

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