This guide aims to help trustees of small charities understand their financial reports, focusing on Receipts and Payments Accounts, the Statement of Assets and Liabilities, and the Trustees' Annual Report.
It breaks down key concepts like fund types (unrestricted, restricted, endowment) and charity trading, including the role and benefits of a separate trading arm for tax efficiency and risk management, explaining how these appear in financial statements.
The guide provides practical advice on interpreting income and expenditure categories, assessing the charity's financial position, understanding the narrative context provided by the Trustees' Annual Report, and the significance of independent examination reports, ultimately encouraging trustees to ask questions and seek professional advice to ensure sound financial governance and the charity's long-term sustainability.
This guide aims to help trustees of small charities understand their financial reports, focusing on Receipts and Payments Accounts, the Statement of Assets and Liabilities, and the Trustees' Annual Report.
It breaks down key concepts like fund types (unrestricted, restricted, endowment) and charity trading, including the role and benefits of a separate trading arm for tax efficiency and risk management, explaining how these appear in financial statements.
The guide provides practical advice on interpreting income and expenditure categories, assessing the charity's financial position, understanding the narrative context provided by the Trustees' Annual Report, and the significance of independent examination reports, ultimately encouraging trustees to ask questions and seek professional advice to ensure sound financial governance and the charity's long-term sustainability.
