Month: November 2017

2017 Round-up: the highs and lows of charity disclosure so far

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Benefacts warmly welcomed the report of the Carmichael Centre’s annual Good Governance Awards, announced on 16th November during the Charities Regulator’s Trustees Week.

The awards celebrate high standards in published disclosures by charities, and make a direct connection between good governance and clear, transparent public information.

Use Benefacts to review the annual reports of the short-listed and winning charities in each category:

Category 1 – Organisations with an annual turnover of less than €250,000

Category 2 – Organisations with an annual turnover of between €250,000 and €1million

Category 3 – Organisations with an annual turnover of between €1million and €5million

Category 4 – Organisations with an annual turnover of over €5million

 

Trend in abridgement continues

At the same time as welcoming best practice at one end of the spectrum, we are disappointed to report that the number of incorporated charities that have prepared audited financial statements, but elected to publish these in an abridged form, now exceeds 34%. (We are still keying 2016 accounts so it possible this total percentage could change. Right now, the level of abridgement for all incorporated nonprofits – whether charities or non-charities – stands at 40%).

The filing of abridged accounts by companies limited by guarantee is now permitted under the Companies Act 2014. The choice to file accounts in this limited form represents a decision on the part of the members of these companies to withhold a significant body of financial transaction information from the public.

Given the findings of the recent Amárach survey – published at the recent CII conference – showing that public trust in charities is still very low, it seems that charities are not acting in a way that promotes their self-interest. How can you expect people to trust you more when you tell them less?

 

List of charities publishing abridged accounts

For a list of those charities that have filed abridged accounts for 2016, click here.

To see the 2015 list, click here.

And for the small number of charities that are bucking the trend, by reverting to full published financial statements in 2016 – having previously published abridged ones – see here.