Published: 22nd Nov 2018

Only a quarter of large charities accurately reported the correct level of financial reserves they hold, according to a review by charities regulator the Charity Commission. In January 2018, the Commision selected a random sample of 106 sets of accounts of charities with an income of over £500,000. There are just over 11,500 charities of this size on their register and they account for approximately 90% of the sector’s income. The Commission says its findings suggest an incomplete understanding of what reserves are, which could lead trustees to make poor decisions about their charity’s finances. They believe the main reason why the reserves figures were incorrect is that many trustees believe that reserves are the same thing as total unrestricted funds. Sarah Atkinson, director of policy, planning and communications at the Charity Commission said: ‘The public, who generously donate to charity, rightly hold charities to high standards and expect them to manage … (To read the full article, subscribe below)