Larger charities making ‘basic errors’ in annual reporting

The Charity Commission has vowed to make larger charities aware of their reporting duties after finding ‘basic errors’.

A survey of those with unusually low expenditures found that more than 40 per cent had either made a mistake or understated the figure.

A total of 188 charities were reviewed, with 57 per cent found to have a reasonable explanation for low expenditure, including the receipt of large, one-off incomes. The rest had made errors, with the Commission finding no instances of misconduct.

“We are concerned that so many charities are making basic errors in their annual reporting,” said Michelle Russell, director of investigations for the Charity Commission.

“Aside from being a regulatory concern and undermining public trust in charities and the information they provide about their work and finances, it is likely to impact on how they are perceived by donors and potential supporters.”

Further promotion of the Commission’s advice on compliance is now planned. The charities that made errors have been requested to resubmit accounts for the years in question.

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