How does your organisation report its public benefit?

We need your views. The Office of the Third Sector has launched a consultation on changes to the accounting and reporting framework for charities as a result of the Charities Act 2006. One proposal that needs consideration is the requirement for charities to report on their public benefit.

It is proposed that in annual reports covering financial years beginning on the 1st January 2008 or later, smaller charities (below the new statutory audit threshold of £500K annual income) would be required to give a brief summary of how the charity’s purposes have provided benefit to the public during the year. Larger charities would be required to provide a more detailed review of how the significant activities undertaken by the charity further the charity’s purposes for the benefit of the public. All charities that prepare an annual report would also have to include a confirmation by the trustees that they have “paid due regard” to Charity Commission guidance on public benefit.

The consultation asks:

1. Do you agree that it is appropriate for charities to report publicly how they meet the public benefit requirement?

2. Do you agree that the annual report of a charity is the best medium through which to report public benefit?

3. Do the proposals achieve the right balance in reporting public benefit and the regulatory cost of providing such information?

CTN is gathering your responses to this consultation to inform its submission to the Office of the Third Sector. Send your thoughts to claire.f@trusteenet.org.uk by 31 August 2007.

Over the next month the polls on trusteenet will be dealing with the questions asked in the consultation. So, as well as letting CTN have your more detailed responses, please quickly click on the poll to help us have a better idea of what trustees think.

Further information on the consultation can be found at –www.cabinetoffice.gov.uk/third_sector/law_and_regulation/charities_act_2006 and then clicking on Charities Act 2006 implementation in the white box on the left.