The sector will not take advantage of the Government's proposal to exempt charities with income below £1 million from the requirement to have a professional audit, a charity accountant has claimed.
Charity law requires all charities with income above £250,000 to be audited. But the Strategy Unit's report on charity law and regulation proposes to raise that threshold to £1 million. This would place charities on the same legal footing as companies.
But Murtaza Jessa, partner at accountancy firm Trustient, said that the need to be accountable to funders and to satisfy trustees will mean that very few charities with eschew the need for an audit.
"I don't know a single charity that says they don't need an audit," he said.
According to Jessa, the only class of charity that will opt out will be membership organisations since they don't have to report to funders.