Charitable giving in the UK is supported by generous tax incentives, making the formation of not-for-profit organisations increasingly attractive. However, the landscape is complex, with strict legislative and regulatory requirements. While you focus on your mission, Daniel Wolfson & Co ensures your charity’s finances and compliance are expertly managed behind the scenes.
Welcome to Daniel Wolfson & Co: Specialist Charity Accountants
Daniel Wolfson & Co is proud to offer specialist accounting services for charities, non-profits, community interest companies (CICs), social enterprises, and community amateur sports clubs (CASCs). Our dedicated team understands the unique requirements of not-for-profit accounting in the UK and supports commercial businesses seeking meaningful charity partnerships.
Why Choose Us?
- Specialist charity accountants with extensive sector experience
- Dedicated support for accountants for charities and accountants for non-profits
- Based in London, serving clients locally and nationwide in UK
- Flexible, tailored solutions for organisations of all sizes
Charity Accounting and Compliance
The Charity Commission and other regulators set the standards for compliance, overseeing areas such as Gift Aid, Payroll Giving, legacies, and public collections. This ensures that all charitable organisations meet their obligations, and non-compliance can result in intervention—making expert guidance essential.
Our team of accountants for charities, combines technical know-how with a genuine passion for supporting the sector. We provide client-focused, cost-effective solutions for not-for-profit organisations, handling everything from annual returns to maintaining your charity register.
Charity trustees are responsible for ensuring accurate financial records and compliance with all reporting requirements. We help you prepare and submit your annual accounts, keep your charity’s register up to date, and meet the expectations set by the Charity Commission and other regulators.
By proactively managing your accounting and compliance needs, we help your organisation maintain transparency, build public trust, and focus on delivering your charitable mission.
How is Charity Accounting Different?
Charities benefit from significant tax reliefs, helping to maximise the funds available for charitable activities. Most income and gains are tax-free if used for charitable purposes, though not all not-for-profit entities qualify for these exemptions. Certain revenues, such as those from property development or specific VAT-liable purchases, may still be taxable.
From 1 January 2026, a new Charities SORP will come into effect, introducing a three-tier reporting framework based on income thresholds:
- Tier 1: Gross income up to £500,000
- Tier 2: Gross income over £500,000 up to £15 million
- Tier 3: Gross income above £15 million
This tiered approach aims to ensure that reporting requirements are proportionate to the size and complexity of each charity. For smaller charities (income under £500,000), reporting will be simplified, including the option to use natural classification for income and expenditure and exemption from preparing a cash flow statement.
The new SORP is aligned with the revised FRS 102 and brings important changes:
- Lease accounting: From 2026, most leases—including property and equipment—must be recognised on the balance sheet as a right-of-use asset and a corresponding liability.
- Revenue recognition: Income from grants and contracts will be recognised using a new five-step model, clarifying the distinction between exchange and non-exchange transactions, which may affect when income is reported.
These changes are intended to make charity accounts easier to understand, more consistent, and more transparent for supporters, regulators, and trustees. By following the new rules, your charity will stay compliant with the latest requirements and demonstrate good financial management to all stakeholders.
Do Charity Accounts Need to Be Audited?
Charities are subject to two main forms of external scrutiny:
- Independent Examination: Required if gross annual income exceeds £25,000, or when requested by the constitution or funders. (Note: Thresholds are under review and may change with the new SORP and future Charity Commission updates).
- Audit: More comprehensive, but also more costly. Required for larger charities or when stipulated by governing documents.
We advise on the most appropriate level of scrutiny for your organisation.
Types of Charities and Organisations We Support
Our expertise covers a broad range of not-for-profit entities, including:
- Charities of all sizes
- Social enterprises and CICs
- Community Amateur Sports Clubs (CASCs)
- Commercial businesses with charitable partnerships
Our Charity Accounting Services
We deliver a comprehensive suite of accounting services for charities and not-for-profits, including:
- Preparation of statutory accounts in line with SORP and UK legislation
- Annual accounts, tax returns, and Companies House/Charity Commission filing
- Independent examinations and audits
- Bookkeeping services for charity organisations and bookkeeping reviews to maximise income
- VAT advice, registration, and filing
- Compliance health checks and efficiency reviews
- Advice on maximising grants, funding, and contracts
- Identification of key performance indicators (KPIs)
- ESG, sustainability, and carbon reporting
- Governance reviews, trustee support, and board effectiveness assessments
- Guidance on legal entity formation and registration
- Management accounts for boards and grant-giving bodies
- Support with trustee annual reports and secretarial duties
- Advice on trading activities, subsidiary collaborations, and social enterprises
- Tax-efficient fundraising and income diversification strategies
Why Work With Specialist Charity Accountants?
Charity accounting requires a nuanced understanding of sector-specific legislation and best practice. Our team ensures your organisation remains compliant, maximises available tax benefits, and operates with financial transparency and integrity. We are committed to supporting the financial health of your charity, so you can focus on creating positive change.
Contact us today to find out how we assist newly formed or prospective non-profit clients, community organisations, and established charities. Our work in this sector reflects our commitment, including providing practical advice on the best legal structure to adopt and ensuring compliance with the criteria defined by the Charity Commission.
Stay compliant with Daniel Wolfson & Co
Running a charity comes with unique challenges and tax benefits. At Daniel Wolfson & Co, we ensure you make the most of these benefits while maintaining the high standards of governance expected by the Charity Commission. We support you with meticulous financial management and effective advice to maximise your funding, simplify compliance, and ensure the financial well-being of your beneficiaries.
If you are seeking charity accountants in London or require accounting services for charities and accounting services for small charities, contact Daniel Wolfson & Co today. We offer a free consultation and are ready to help your organisation thrive.
Call us on 01923 856 008 or book a free consultation with a specialist charity accountant.
Daniel Wolfson & Co – your trusted partner for not-for-profit accounting in the UK.
Frequently asked questions about accounting for the charity sector
Do charities need to follow specific accounting rules?
Yes, from 1 January 2026, all UK charities must follow the updated Charities SORP, which introduces a three-tier reporting structure based on income, enhanced narrative reporting, and new rules for income and lease accounting. Smaller charities will have proportionately reduced requirements.
How does Gift Aid work, and can you help with claims?
Gift Aid lets eligible charities claim 25p for every £1 donated by UK taxpayers. We ensure your claims are accurate and compliant, helping you maximise this valuable source of income.
What accounting standards apply to small charities?
Charities with income under £500,000 (Tier 1) will have the least reporting requirements, including the option to report income and expenditure by natural classification rather than by activity, and will not need to prepare a cash flow statement.
Can you assist with payroll for charity staff and volunteers?
Yes, we manage payroll services for charity staff and paid volunteers, ensuring all payments, tax codes, and HMRC submissions are correct and on time.
What are the Charity Commission’s compliance requirements?
Charities must submit annual returns and accounts, maintain good governance, and comply with the latest SORP and Charity Commission rules to remain in good standing.
When does a charity need an independent examination or audit?
Charities with income over £25,000 generally require an independent examination; larger charities may need a full audit, depending on income and legal structure.
