Charity accounting, explained.

New analysis of the Charity Commission register shows thousands of active charities are within a single strong fundraising year of each major compliance threshold. Here is what the data shows and what trustees need to do before income crosses each cliff.

Analysis of the full Charity Commission register extract shows 185,749 charities have been removed since registration records began. The median age at removal is 20 years. Early registration cohorts show long-run survival rates around a third; charities registered in the last decade are still mostly active, though they have not yet had time to face the same attrition. This article sets out what the data shows, what removal actually means, and what it implies for trustees thinking about reserves, sustainability and governance.

Analysis of the Charity Commission full register extract shows median free reserves range from 8.8 months for animal welfare charities down to 3.3 months for recreation charities. Close to half of charities in some causes hold under three months of reserves. This article sets out reserves health by cause, explains what a healthy level looks like, and what trustees should do about a thin reserves position.

Analysis of the Charity Commission full register extract shows median charity income varies more than threefold across charitable causes, from £53,344 for accommodation and housing charities down to £15,000 for environment and conservation charities. This article sets out the full ranking, explains why income differs so much between causes, and what the figures mean for trustees benchmarking their own charity.

The trustees' annual report is a narrative document filed with the accounts; the Charity Commission annual return is a separate online form. This post explains what each is and how they connect.

A practical guide for trustees and founders on what makes a charity bank account different, the criteria that matter when comparing options, and the documents banks require before they will open one.

When a limited company donates to a UK charity the payment is deducted from the company's profits for Corporation Tax purposes, but the mechanics differ substantially from individual Gift Aid.

CICs can access grants, social investment, community shares and trading income, but cannot claim Gift Aid and are excluded from some charitable trust funds. This post covers every funding route and the accounts and reporting funders will expect to see.

Registering with the Charity Commission and getting HMRC recognition are separate applications to separate bodies. This post explains what each one gives you and why you need both.

The independent examiner's report is the document the examiner attaches to your charity's accounts, confirming they have examined them and giving a negative-assurance conclusion. This post explains what the report must contain, walks through an illustrative example section by section, and sets out who can sign it.

The Office of the Regulator of Community Interest Companies is an independent office based at Companies House that approves CIC formation, applies the community-interest test, and enforces the asset lock, it is not the Charity Commission.

UK charities can only reclaim input VAT if they are VAT-registered and the purchase relates to taxable business activities; this guide walks through every gate in the decision path.

Most general accounting software was not designed for fund accounting, SORP-compliant reporting or the Charity Commission filing format. This guide compares the realistic options for UK charities and CICs, from dedicated nonprofit platforms to adapted general-purpose tools, and explains what each one does and does not handle natively.

Every registered charity in England and Wales must complete an annual return with the Charity Commission within 10 months of its financial year end. The income bands change what you submit, not whether you file. This guide covers what to submit, when, and the key differences if your charity is based in Scotland or Northern Ireland.

The Charities SORP (FRS 102) was updated for accounting periods starting on or after 1 January 2026. This article explains the transition timing, which year-ends are caught first, and what trustees need to do before they prepare the first set of SORP 2026 accounts.

A trading subsidiary lets a charity run taxable commercial activity and return all profits to the parent via corporate Gift Aid, paying no corporation tax in the process.

A head-to-head comparison of community interest companies and charities on tax treatment, Gift Aid, rate relief, asset lock, director pay and registration burden.

Every CIC must file a CIC34 community interest company report alongside its annual accounts at Companies House. This guide walks through every section, both filing routes, and the most common reasons CIC34s get sent back.

Charities are not exempt from VAT as a matter of status. Specific reliefs exist, but whether a charity registers, charges and recovers VAT depends on the nature of its activities.

GASDS lets registered UK charities claim a 25% top-up on small cash and contactless donations without a Gift Aid declaration, up to £8,000 of donations per tax year.

A Gift Aid declaration must include five mandatory elements. Miss one and HMRC can require repayment of every pound claimed on donations covered by that declaration.

A plain-English walkthrough of who must produce a trustees' annual report, when it is due to the Charity Commission, and exactly what it must contain.

The answer depends on your charity's gross income. Below £250,000 (£500,000 for financial years ending on or after 30 September 2026) any independent, capable person qualifies. Above that threshold the examiner must belong to one of the Charity Commission's listed professional bodies.

An independent examination is the lighter-touch external scrutiny option for smaller UK charities, sitting below a full statutory audit.