Generous tax incentives for charitable giving in the UK may make starting a not-for-profit company even more enticing. But legislative and regulatory pressures don’t make it easy. While you’re making a real difference in the world, Daniel Wolfson takes care of the complex rules and accounting requirements behind the scenes.
Welcome to Daniel Wolfson, specialist charity accountants
At Daniel Wolfson, we work with hundreds of business clients, but we have a specialist team dedicated to non-profits, charities, community interest companies (CICs), social enterprises, and community amateur sports clubs (CASCs). We also work with commercial businesses whose ethos includes an impactful charity partnership.
The Charity Commission and other regulators are responsible for setting guidance and ensuring compliance. The Commission has the power to intervene if a charitable organisation breaches the guidance, including the rules that govern Gift Aid, Payroll Giving, legacies, and share options, as well as taxable options such as public donations or public collections made during charitable events.
Our team of specialist charity accountants combines technical expertise with a genuine passion for helping organisations like yours. We guarantee client-centred, cost-effective expertise aimed at not-for-profit organisations. Whether preparing your accounts to meet the required accounting standards, submitting your annual return, or keeping your charity register up to date, your dedicated charity accountant will support you every step of the way.
How is charity accounting different?
Charitable organisations benefit from generous tax reliefs, which help optimise the funds you receive. Most income and gains are tax-free as long as they are for charitable purposes (known as “charitable expenditure”). However, tax exemptions don’t apply to every not-for-profit organisation or social enterprise.
Revenue from dividends (received before April 2016), profits from land or property development, and purchases (where special VAT rules apply) may be taxable. Since 2016, different accounting and reporting requirements have applied to both company and non-company charities, as well as charitable incorporated organisations (CIOs).
It is easy to misunderstand the complex tax accounting and governance rules that protect non-profit organisations, especially without the assistance of a qualified tax accountant. We simplify the process by preparing your accounts in line with the Charities Statement of Recommended Practice (SORP), ensuring you always meet Charity Commission standards. For smaller non-company organisations with an income under £250,000, we’ll guide you on whether receipts and payments accounts are the best option.
Do my charity accounts need to be audited?
Two forms of external scrutiny exist for charities: independent examination and audit.
- The audit is more thorough but more expensive.
- An independent examination is mandatory if the charity’s gross annual income is over £25,000, but the constitution or funders may also request it.
Types of charities we work with
The charity team accountants at Daniel Wolfson work across the sector and are well-versed in the regulations and bookkeeping and accounting procedures governing it. Proactively introducing best practices enables charities and the non-profit sector to excel in governance and financial compliance.
We work with:
- Charities of all sizes—large, small, and everything in between
- Social enterprises and community interest companies (CICs)
- Community Amateur Sports Clubs (CASCs)
- Commercial businesses looking to support charities with impactful partnerships
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.
Our accountancy services for the charity sector
At Daniel Wolfson, we take a holistic approach to accounting with flexible, practical, and proactive support tailored to your organisation.
Our charity accounting services include:
- Preparation of statutory accounts consistent with SORP and all applicable legislation;
- Advice on SORP;
- Prepare annual accounts, tax returns, and filing;
- Independent examinations and audits;
- Identification and calculation of income (designated, restricted, and endowment);
- Compliance health checks;
- Bookkeeping reviews to maximise all income;
- Tax; VAT scheme advice, registration, and filing;
- Core cost recovery; advice on maximising grants, funding, and contracts;
- Identification of KPIs;
- Efficiency reviews to reduce operating costs;
- Review of strategy and reserves policies; ESG, sustainability, and carbon reporting;
- Governance and structure reviews, roles and responsibilities of trustees, board effectiveness and leadership; integrity, decision-making, risk control: efficiency and effective control procedures, financial management; EDI (ED19), openness and accountability, digital security, etc.;
- Reviews of governing documents;
- Advice on legal entity and registration of new charitable organisation;
- Management accounts, including for the board and grant-giving bodies;
- Support with trustee’s annual reports;
- Collaborations/mergers, conducting due diligence;
- Trading activities, subsidiary collaborations, social enterprises, and community interest companies (CICs);
- Guidance on running tax-efficient fundraising activities, diversifying income, and tax planning;
- Secretarial support, including an update of the register of trustees.
Stay compliant with Daniel Wolfson
Running a charity comes with unique challenges and tax benefits. At Daniel Wolfson, 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.
Call us on 01923 856 008 or book a free consultation with a specialist charity accountant.
Frequently asked questions about accounting for the charity sector
Do charities need to follow specific accounting rules?
All charities must use the Charities’ Statement of Recommended Practice (SORP) to prepare their accounts on an accrual basis unless authorised otherwise. Since January 2015, the trustees can choose SORP FRS 102 or SORP FRSSE. Contact Daniel Wolfson today or view the government guidance to learn more.
How does Gift Aid work, and can you help with claims?
If your organisation is recognised as a charity or community amateur sports club (CASC), Gift Aid allows you to claim 25p back for every £1 donated. However, you must follow the rules for claiming Gift Aid, as not all donations are eligible. This is something we can help with to ensure compliance with all claims.
Can you help with payroll for charity staff and volunteers?
Like any other employer, charity sector organisations also benefit from outsourcing payroll services to Daniel Wolfson. We keep your payroll records accurate, apply the correct tax codes, ensure your staff are paid on time, and guarantee the correct amount of tax and NICs are submitted.
How can we ensure our charity stays compliant with the Charity Commission?
The Charity Commission is an independent regulator of charities in England and Wales. It’s important that you stay compliant by adhering to the Commission’s expectations of good governance and financial reporting and by meeting your legal requirements. Our extensive experience in the sector means we can ensure that appropriate risk-management policies, safeguarding strategies, and due diligence processes are in place to mitigate the risk of breaking any rules, financial or otherwise.
