Updated finance guidance for charity trustees
In order to face the challenges of the current social and economic climate, the Charity Commission has stated that charity trustees must apply the commission’s finance guidance.
To help with this the Commission has updated three key publications:
- Managing a charity’s finances: planning, managing difficulties and insolvency (CC12). This recommends that each charity reviews its financial position and performance against budgets and projections at least monthly. The extent of the review will depend on the size and stability of the charity. Guidance is also given on insolvency.
- Charity reserves: building resilience (CC19). The Charity Commission confirms that there is no single level or range of reserves that is right for all charities, but the level of reserves should be kept under regular review rather than just being an annual exercise.
- Charity governance, finance and resilience: 15 questions trustees should ask. This is a guide for trustee meetings and should help when reviewing methods of operating.
More information can be found at Gov.UK by clicking here.
For further advice on financial management and planning for charities, please contact Elizabeth Irvine