Budget
A budget is not a forecast of what will happen. It is a decision about what the charity intends to do with…
Glossary
Statement of financial activities
Charity accounts do not use a profit and loss account. The SoFA replaces it, and it does a job an ordinary income…
Breach of trust
Trustee duties are not aspirational. Acting outside the governing document, applying funds to non-charitable purposes, or failing to act with reasonable care…
Independent examination
An independent examination gives trustees, funders and the public some external assurance on the accounts without the cost of a full audit.…
Special resolution
Not all decisions are equal. Ordinary business passes on a simple majority; changing the constitution usually does not. A special resolution requires…
Board of trustees
“The board” is a convenient shorthand, but it carries a legal point that catches people out. Charity powers are given to charity…
Charitable purposes soft opt-in
This is the most significant change to charity marketing law in years, and the ICO’s own guidance took until April 2026 to…
Beneficiaries
A charity can only benefit those who fall within its purposes. That sounds obvious until an organisation drifts — starts serving a…
Impact
Impact is the biggest claim a charity can make: that the world is different because it exists. That is also why it…