New Charity Commission Guidance

Reporting financial difficulties as a serious incident

In particular, this guidance includes details of what to do if you’re experiencing financial difficulties, which may include reporting these difficulties and losses as a ‘serious incident’.  You can do this via a simple online form, and it is the responsibility of trustees to decide what needs reporting and make sure that it’s done.  The Charity Commission has relaxed the rules on this.  You normally have to declare any losses of £25,000 or 20% of the charity’s income, however, they want trustees to focus on the impact of the losses rather than the amount.

Temporary changes to insolvency rules

The Government has also temporarily relaxed the insolvency rules by suspending the wrongful trading law which normally forces organisations to file for bankruptcy if it cannot meet all its debts.  This is to protect directors and trustees and allow them time to restructure or find a rescue package or other funding, and hopefully allow them to emerge intact from the pandemic.

And don’t forget, if you are struggling and need help and advice you can talk to our expert team at TSL Kirklees or contact our accounting and finance partners, WYCAS for free advice.

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