SORPed out - Why financial reporting for charities should be reformed
Financial reporting is a key ingredient of how the public, donors, volunteers, staff, and the sector as a whole find out about charities and their performance. We know that the public care deeply about how much a charity spends on the cause, fundraising and admin. For this reason, reporting that information is critical to help the public have confidence that their donations are being well spent.
Good financial reporting is a vital ingredient of how we help the giving public (whether they give time or money) know that their contributions are well spent. This free report addresses the current issues with the system and proposes changes. Please download the whole report or executive summary. Join the conversation about the matter in the comments section.
Thanks Joe - Agree, something
Thanks Joe - Agree, something needs to change.
Joe, an excellent report,
Joe, an excellent report, reflecting on your experience og how the SORP process works in practice on "the inside".
I particularly support your Proposal 4 about defining and reporting various metrics that are important to the public, regulators and researchers. In particular I would like to see the gross income and associated costs from each major funding source (investments, trading, voluntary donations, legacies, public grants, private grants, competitions, membership, events, corporate etc) reported in the Notes to the accounts. In the first instance this more detailed reporting could be limited to charities with income of say more than £1m pa.
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