Charities receive billions of pounds in donations each year but their rules vary. This can make it hard for governments, businesses and individual donors to check how their money is spent and compare the performance of charities.
In the UK, charities use accounting guidelines called “statement of recommended practice” (SORP), which explain how international accounting and financial reporting rules can be adapted for charities.
One of the main accounting tasks for charities is accounting for “restricted donations” when donors specify what their money should be spent on.
About Nick Huber
I’m a specialist business journalist and have a particular interest in tax and technology.