Can you guide me in the value I should apply?

Valuation for gift of service provided to a charity

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Hi, I am preparing accrual accounts for a charity for the first time. Prevously due to income levels I prepared on a cash basis. The SORP states I should value gifted services equal to or less than market value. I would like to apply a value to the preperation of the accounts and also the independent review. It is a relatively simple charity foodshare/baby bank/school uniforms bank that has an average income of £400k pa. The charity is based in the West of Scotland. 

I'd really appreciate any guidance on cost of the service as I am industry based. Thank you.

Replies (6)

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John Toon
By John Toon
01st Nov 2023 13:39

What would you charge if you were doing this commercially?

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By Tax is always taxing
01st Nov 2023 15:43

If I were you I would go out and get quotes for the accounts prep and the independent examination (hope you're not thinking of doing it)... then I would encourage the charity to accept one of the quotes.
Nothing good comes of doing work for free, that won't be remembered if it all goes wrong.

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By JULS1001
01st Nov 2023 16:52

Thanks. Another industry based accountant completes the independent examination. We both had experience of preparing statutory accounts for large commercial businesses that we have been employed in. This has been our volunteering for the charity for past 6 years.

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DougScott
By Dougscott
01st Nov 2023 23:14

I don't think you'd be far off the mark with £100 an hour. An IE done properly will likely take at least 10 hours if provided with decent statutory accounts. Time preparing statutory accounts will depend on how good the records are.

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Replying to Dougscott:
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By JULS1001
02nd Nov 2023 10:38

Great thanks for this. As it has to represent the value to the charity , max market rate I didn't want to assume my own rate. Kind Regards

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By tom123
02nd Nov 2023 07:45

I'm a trustee, and treasurer of a similar sized charity. I'm (begrudgingly) happy to do the bookkeeping for free - but I still send the accounts out to be prepared each year.

I think that gives some protection to the charity as a whole.

I guess, OP, you are in practice - but I still wouldn't wish to be taken advantage of.

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