Charities protest at red border for overdue accounts

By Gemma McKenna, Third Sector, 8 October 2008

New system: The Charity Commission has been criticised for being unfair

Charities among the nearly 5,000 publicly shamed by the Charity Commission's new online register have labelled the system unfair.

The regulator introduced a system on its website last week that highlights the organisations that have filed their accounts late with a red border (1 October, page 3).

Some charities that have seen their records on the online register bordered in red expressed their dismay at the new system.

Laurence Stein, development director at the British Friends of Boys Town Jerusalem, which raises money for a Jewish boys' school in Israel, said the new system was unfair and unjustified. "The commission should contact the charities first," he said.

Linda Walker, national coordinator at Chernobyl Children's Project (UK), which works with children affected by the 1986 nuclear disaster, said the charity had been given a red border even though this was the first time it had filed its accounts late.

"I think it's very unfortunate that we are being branded in this way," she said. "This is the first time it's happened and our accounts will be supplied shortly."

Walker said the delay occurred because the charity changed its treasurer and accountants; she had written to the commission explaining the circumstances in July, ahead of the deadline.

Derek Vitali, head of finance at Bowel Cancer UK, said he was disappointed at the culture of naming and shaming. He said, however, that the charity would have to "raise its game".

The charity said that its accounts information had already been sent to the regulator. However, a spokeswoman for the commission said the data had not been received.

Miriam O'Keeffe, project manager at the BBC Performing Arts Fund, said the charity had a scramble to file its documents after it became aware that its accounts were overdue and its record was highlighted in red.

The commission spokeswoman said charities were reminded their accounts were due as the deadline approached.

"The new register enables supporters to be better informed and also intends to make charities even more accountable to all their donors and beneficiaries," she said.

REGISTER RULES

- Charities with annual incomes of more than £10,000 are required to submit financial documents

- The deadline for receipt of accounts and annual returns is 10 months after the end of a charity's financial year

- The register is the first step in the regulator's campaign to improve compliance rates

- Failure to supply the documents could lead to removal from the register, the commission has warned.

X

You must log in to add to your Storage Folder

All Comments Make a comment

Daryl Martin

Daryl Martin, 8 October 2008, 10:53

I know it sounds tough but in our experience, a charity that can't get its accounts lodged in 10 months has something going on and needs help. It's time the CC started to tighten up.

[Report this post]

Anthony Fallon

Anthony Fallon, 8 October 2008, 12:13

I would agree with Daryls comment. Accounting should be done on a daily basis and not at period end. Although Linda Walker hightlights a problem that the commission needs to take in to account. If a charity can present their information at the year end, it's down to the accountants to get the statutory work done in time for the charity to file with the CC. If this is the case then maybe they should shame the accountants, not the charity.

[Report this post]

Philip Corp

Philip Corp, 8 October 2008, 12:14

A charity of which I am a trustee sent its report and accounts in at the same time as its return, in October 2007 - electronically and in hard copy. Some time later I saw on the website that these were overdue. The secretary contacted the CC and was told that they had had a lot of problems at the time with e-accounts and also losses during the postal strike. In these circumstances it seems inappropriate to introduce these new measures retrospectively. That said, in general I agree with the approach for future years.

[Report this post]

David Holmes

David Holmes, 8 October 2008, 16:36

I totally agree with Daryls comment but would like the CC website to provide a space where charities can post a response so that cases like the one highlighted by Linda Walker can be explained.

[Report this post]

You must log in to comment on articles.

You are reading Third Sector Finance, the weekly bulletin that delivers the top stories affecting charity financial management, accounting, IT and commercial activities.

You must be logged in to make full use of all the site content and features.