How to prepare for your charity’s trustees’ report

Page Kirk Partner and charity specialist accountant James Haywood argues that reporting within your charity accounts isn't just a tick-box exercise. If done correctly, it can help your organisation to thrive.

As a registered charity in England and Wales, you are obliged to write a trustees' annual report (TAR) as part of your annual accounts. If done correctly, a trustees' report can open several fundraising opportunities for a charity enabling it to prosper. An example would be a grant provider, such as the National Lottery or Arts Council, they will be interested in how the charity has benefitted the community it serves and therefore achieving its charitable purpose. If the trustees' report provides significant detail on its charitable purpose and promotes the charity's achievement, then it will be more likely that a grant provider would provide a grant to the charity. The level of detail required within the trustees' report does depend on the amount of income the charity receives within that accounting period and if it is a company.

Below, I look at the main points that need to be covered within a trustee's report, as well as the benefits of a charity trustees' report.

For non-company Charities that have income below £500,000

For charities within this category are only required to submit a “simple” trustees' report. This includes information such as the charity name, registration number and trustee names. The report should also include details on the management and structure, significant achievements, benefits to the public and a financial review of the charity.

For non-company charities that have income of £500,000 or above or are charitable companies

For charities included within this category are required to submit a more complex report. These follow the Charities' SORP (Statement of Recommended Practice), which is a framework that helps charity trustees meet their legal requirements within their accounts. There are several different SORP procedures for different charity types, which is where a chartered accountant with specialist charity knowledge can advise.

An excellent opportunity to promote your charity

Although these reports may appear to be tick-box exercises, if they are prepared in a smart manner, they offer a lot of opportunity to illustrate the benefits of your organisation to stakeholders such as philanthropists and fundraisers. A smart trustees' report should consider the wider strategic plan for the charity and look to appeal to supporters and donors to the organisation, helping to raise awareness, thank supporters and demonstrate the positive impact of the charity's work. In turn, this can help in receiving more grant funding, donations and support.

As specialists in charity accounting, we can provide in-depth and personalised advice with regard to preparing your charity's trustees' report, analysing the wider environment and strategic goals of your organisation. Contact the team for more information or advice on 0115 9555500 or email enquiries@pagekirk.co.uk.