One third of charity accounts are 'unacceptable' | Attitudes to Muslim charities stifling aid, says Bubb | MPs call for change in lottery regulations

Plus: Big Lottery Fund will make applications more flexible | A quarter of charities cannot meet current demands on services | Regulator investigates charity that spent 90 per cent of income on fundraising

A third of charities’ annual accounts are of unacceptable quality, and two-thirds of charities fail to formally report on the public benefit they provide in their annual reports, according to a new report from the Charity Commission. The Quality of Charity Accounts assesses how useful charity accounts are to users and is based on a random sample of 107 charities’ most recent annual accounts.

Attitudes towards Muslim charities are stifling aid efforts, according to Acevo chief executive Sir Stephen Bubb. Speaking at a press conference in London, Bubb said that he had written to the leaders of the three main political parties to urge them to meet him and a delegation of Muslim charities to discuss "serious flaws" in the UK’s legal and financial regulation and in its approach to tackling extremism.

The regulation of society lotteries should be tightened for large, commercially run organisations but relaxed for smaller and start-up lotteries, the House of Commons Culture, Media and Sport Committee has said. In a report, the committee also also said that the 35 per cent cap on operating costs – which does not include prizes and money set aside for rollovers – should be reintroduced for the largest lotteries.

The Big Lottery Fund has unveiled its strategic framework for 2015-21, in which it states that it will make its applications process more flexible. The chief executive of the grant-maker, Dawn Austwick, said that enabling communities to have the tools to solve their own problems would be a second priority.

More than a quarter of charities say they are unable to meet current demands on their services, according to a new study published by the Institute of Fundraising, the Charity Finance Group and the professional services firm PwC. Seven out of 10 respondents said they had experienced an increase in demand for their services over the past year up from 65 per cent in the previous study.

The Charity Commission has opened a statutory inquiry into an international children’s charity that spent nearly 90 per cent of its money on fundraising activities last year. The Cradle Child Trust had an income of £29,531 in the year to January 2014, and spent £24,531 - 88 per cent of expenditure - on fundraising.

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