Charity/Ltd accounts

Charity/Ltd accounts

Didn't find your answer?

I have been asked to do some freebie accounts for a charity. I am ok with charity accounts but they have also formed a ltd company with a different year end, so the first problem is to tie up the two dates. Also I have suggested they look at the new CIO structure next year.

Can you prepare one set of accounts instead of two, ie. on the Charity commissions layouts and ltd company formats? Does any one have the ltd company number of a very small charity (not RNLI) so I could acquire a copy from companies house to see the layout, or is there a proforma I can buy with little cost.

This is turning into a job from hell I wish I had not undertaken!
holly gilbert

Replies (3)

Please login or register to join the discussion.

avatar
By Chris Smail
14th Dec 2007 12:44

Your question makes no sense.
There is a charity - fine it reports to Ch Com

There is separate company - report to Co Hse

The charity is a company - it reports to both on one set of accounts, but cannot have different year ends.

The charity owns a company - fine they report separatly but are consolidatred accounts needed - probably not if small enough.

This is not a job to do as a freebie, will your PI insurance cover this?

Ch Com are very helpful and their helpsheets are useful, start there, make sure you and the trustees are fully up to date with all duties and responsibilities.

Are you chartered? If so use the Tech hellpline and join the Charity SIG for help and support.

Thanks (0)
avatar
By AnonymousUser
14th Dec 2007 13:08

I agree
This is not simple. From the little information you have provided it would seem that a company (limited by guarantee) has been formed to take over the activities of the unincorporated charity. If this is the case, then there needs to be a legal transfer of the assets and liabilities from one entity to the other, and a legal document should be drawn up for this.

The new company does not need to have the same year end as the previous charity, but presumably this would make sense, particularly if the transfer occurred at the year end.

The company will be registered as charity, and one set of accounts would then need to be prepared, although these accounts would need to comply with the Companies Act (not Charities Act) but also the Charities SORP.

The CIO is unlikely to come in until late Spring next year and I would suggest this would not be appropriate if a company ltd by guarantee has already been formed; the additional admin of a co ltd by guarantee is not sigificant enough to warrant another change.

Thanks (0)