Related party transaction
These transactions are not automatically wrong. Many are entirely proper. What matters is that they are identified, authorised and disclosed. The SORP…
Glossary
Agency agreement
Retail Gift Aid looks like ordinary Gift Aid and is not. Donated goods are not a gift of money, so they cannot…
Accruals accounts
There are two ways a charity can present its accounts. Receipts and payments follows the bank account. Accruals accounts follow economic reality.…
Gift Aid Small Donations Scheme (GASDS)
GASDS fills the gap left by ordinary Gift Aid: it lets you claim on the loose cash and contactless taps you can…
Full cost recovery
Charities often win a grant, deliver the project, and quietly lose money on it — because the budget only covered the obvious…
Free reserves
Free reserves answer a simple question: if income stopped tomorrow, how much could the charity actually draw on? Not everything on the…
Fit and proper persons test
The fit and proper persons test is easy to overlook, but it underpins your charity’s tax reliefs. HMRC will only treat an…
Excepted and exempt charities
Most charities register with the Charity Commission and appear on the public register of charities, but two long-standing groups do not follow…
Ex gratia payment
Ex gratia means “as a favour”. An ex gratia payment is one a charity has no legal duty or power to make,…