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Charities update – September 2019

Here at DNG Dove Naish LLP we work with a number of charity clients, helping them not only with accounting and audit issues but with many other matters. We also like to help our charity clients keep up to date on the latest news and regulations which may affect them. One of the ways we do that is to produce regular charity newsletters addressing current issues and hot topics. We have recently published our summer 2019 charities newsletter and we highlight below three of the key updates contained in that newsletter.

Risk Registers

Many charities state that they have a risk register. Often when it is produced, it is a colour coded spreadsheet identifying risks and highlighting whether they are considered significant. For many it has become a tick box exercise of identifying risks but not actually managing them. Instead of a traditional register (or in addition to), a risk policy might work better. A risk policy would involve the trustees asking themselves where they are willing to take risks. This therefore needs to be linked to strategy. Areas to be considered; (read more here).

Defending You Reserves Policy

More often than not, reserves are considered as something to protect. The UK has been through an unpredictable decade with economic downturns, slow growth and more recently, significant Brexit uncertainty. A high level of reserves that a charity holds has often been defended as something that needs to be protected, a ‘rainy day fund’. However is this how trustees should think about reserves? Reserves are unspent income. As a donor to a charity, you would expect a good reason for that income not to be spent on charitable activities. For more information click here.

Tax Update

From 6 April 2019 the following charity tax changes apply:

  • Gift Aid Small Donation Scheme (GASDS) applies to small charitable donations where it is impractical to obtain a Gift Aid declaration. GASDS limit is raised from £20 to £30
  • Small trading exemption limits have increased for charities from £5,000 per annum to £8,000. Where the turnover is greater than £5,000 (rising to £8,000), the limit is creased to 25% of the charity’s total incoming resources, subject to an overall upper limit of £50,000 (rising to £80,000).
  • Gift Aid Retail Scheme rules allowing charity shops using the scheme to send letters to donors every three years (rather than every tax year) when their goods raise less than £20 a year.

DNG Charity Newsletter Summer 2019

Our Charity Newsletter covers the above topics in more detail and other pertinent issues giving you the inside track on the sector’s current hot topics and latest guidance including;

  • the impact of conflicts of interest
  • updated GDPR guidance
  • risk including cyber breaches
  • related parties and non-charitable connections

Click here to read our Charities newsletter summer 2019 edition.

Nicola Fox



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