For any charity, trust is everything.
Whether it’s from donors, beneficiaries, or regulators, keeping that trust means being open and honest about how money is handled.
That’s where accurate financial reporting comes in, and for charities, it’s largely guided by the Charities Statement of Recommended Practices (SORP).
However, keeping up with SORP can feel overwhelming, especially as a charity grows or its operations become more complex.
Why accurate financial reporting matters
Donors want to know that their money is being used wisely. Clear, honest financial reports show that a charity is responsible and doing the right thing with its funds.
Misreporting, even by mistake, can hurt a charity’s reputation and put off future donations.
Charities are regulated by the Charity Commission, and SORP compliance is part of that.
Not following the rules can lead to fines, loss of charitable status, or other serious consequences.
Good financial reporting gives trustees and managers the information they need to make smart choices.
When the numbers are accurate, leaders can plan more effectively, budget wisely, and ensure the charity is set up for long-term success.
How SORP helps with transparency
SORP makes sure that all charities report their finances in a clear, consistent way. This means donors, regulators, and the public can easily see how well a charity is managing its money.
It also ensures that financial statements provide details, like how they are using restricted funds or recognising income from legacies and grants.
Extra information such as this helps paint a fuller picture of how the charity’s income is being spent.
The challenges of SORP compliance
While SORP is helpful, it’s not always easy to follow.
Some parts of it can be tricky, especially if your charity is dealing with complicated financial situations, like:
With our expert assistance, charities can confidently overcome the challenges posed by SORP and produce financial reports that are transparent and accurate.
To find out how we can assist, please contact our team today.
