Finance: Grant-makers' grumbles lead to a guide to the Sorp

Graham Willgoss

The first guide for grant-making charities on how to prepare their annual published accounts in line with the Sorp has been launched.

The Association of Charitable Foundations and chartered accountants Saffrey Champness have teamed up with the Charity Commission to produce the guide after several grant-makers complained they found some aspects of the Sorp difficult to put into practice and were uncertain about how it should be applied.

Sorp Made Simpler will also explain new accounting rules under the accounting standard.

"The publication of this guidance recognises for the first time the distinct needs of grant-making trusts when it comes to financial reporting," said Carol Mack, deputy chief executive of ACF and editor of the guide.

"As the Sorp framework applies to all charities, grant-makers have found it difficult to apply some of its principles because they do not usually deliver services or fundraise. The publication gives advice on how to apply the principles of the Sorp."

The guide shows how the Sorp allows grant-makers to report their performance in a way they feel is appropriate for their charity.

It includes additional guidance on the recognition of grant commitments, which ACF says will result in some grant-makers needing to review their grant-making procedures and the approach they take to their annual reviews.

The guide costs £75, or £35 for charities, and is available from the Directory of Social Change.

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