{"id":2536,"date":"2019-01-09T15:20:22","date_gmt":"2019-01-09T15:20:22","guid":{"rendered":"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/?p=2536"},"modified":"2020-01-13T14:05:25","modified_gmt":"2020-01-13T14:05:25","slug":"trustees-annual-report-charity-reserves","status":"publish","type":"post","link":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/blog\/trustees-annual-report-charity-reserves\/","title":{"rendered":"Trustees Annual Report: Are you accurately reporting charity reserves?"},"content":{"rendered":"<h2>Charity Reserves<\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Despite the legal requirement for registered charities to include their reserves figures in their trustees annual report, recent&nbsp;<strong><a href=\"https:\/\/www.gov.uk\/government\/publications\/charity-reserves-policies-demonstrating-and-building-resilience\">data<\/a>&nbsp;<\/strong>revealed less than 25 per cent of charities with incomes of over \u00a3500,000 actually provided the correct charity reserves figure in 2018.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">Charity reserves are defined as a portion of a charity&#8217;s unrestricted funds that are freely available to spend on any of the charity&#8217;s purposes. However, many trustees incorrectly assume reserves and total unrestricted funds are the same, prompting serious concern from the Charity Commission regarding these trustees&#8217; ability to make important financial decisions.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone wp-image-2538 size-full\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/01\/Reserves-statistic-smaller.png\" alt=\"Inforgraphic stating: Over 30% of charities with incomes of over \u00a3500,000 failed to provide the required information about their charity reserves policies in their trustees annual report.\" width=\"700\" height=\"160\" srcset=\"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/01\/Reserves-statistic-smaller.png 700w, https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/01\/Reserves-statistic-smaller-260x59.png 260w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/span><\/p>\n<h1><span style=\"font-family: arial, helvetica, sans-serif;\">Trustees annual report<\/span><\/h1>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The trustees annual report helps people understand what it is your charity does, particularly potential funders and beneficiaries.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">It tells people:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">About the work your charity does.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Where the money comes from.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">How you&#8217;ve spent your money in the past year.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">If your charity&#8217;s income is less than \u00a3500,000 (and providing it doesn&#8217;t have assets worth more than \u00a33.26 million), prepare a simple report including:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Charity&#8217;s name, registration number, address and trustee names.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Structure and details of how it is managed, including how trustees are recruited.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Objectives and activities for the year.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Previous achievements and performance.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">A financial review including any debts and details of your reserves policy.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Details of any funds held as a custodian trustee<\/span><\/li>\n<\/ul>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">You are required to prepare a full trustees annual report if either: Your charity&#8217;s income is above \u00a3500,000 (or above \u00a3250,000 if its assets are worth more than \u00a33.26 million), or your charity is a company or CIO<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">A full report should follow the&nbsp;<strong><a href=\"https:\/\/www.gov.uk\/guidance\/prepare-a-charity-trustees-annual-report#sorps-for-charities-which-one-to-use\">guidelines set out by a SORP<\/a>.<\/strong><\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone wp-image-2551\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/01\/Charity-Reserves-flow-chart-Coloured.png\" alt=\"Flow chart identifying which trustees annual report, charities are required to complete.\" width=\"375\" height=\"500\"><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;\">Trustee Indemnity<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><em>Don&#8217;t let your trustees be uninformed on reserves. Use the Charity Commission&#8217;s&nbsp;<a href=\"https:\/\/www.gov.uk\/government\/publications\/charities-and-reserves-cc19\/charities-and-reserves\"><strong>guide<\/strong><\/a> for top tips. To ensure your protected should things go wrong, contact ThirdSectorProtect today to discuss purchasing&nbsp;<a href=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/who-we-cover\/charity-trustees\/\"><strong>trustee indemnity cover&nbsp;<\/strong><\/a>from a broker you can trust.<\/em><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><em>For more information on keeping your trustees safe from harm, read our blog post:&nbsp;<strong><a href=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/2018\/07\/25\/is-your-charity-doing-enough-to-protect-its-trustees\/\">Is your charity doing enough to protect its trustees?<\/a><\/strong><\/em><\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><em>For more tips and tricks on all things related to charities, not-for-profits and community groups, follow us on&nbsp;<a href=\"https:\/\/www.facebook.com\/ThirdSectorProtect\/\"><strong>Facebook<\/strong><\/a>,&nbsp;<a href=\"https:\/\/twitter.com\/ThirdSecProtect\"><strong>Twitter<\/strong><\/a>&nbsp;&amp;&nbsp;<a href=\"https:\/\/www.linkedin.com\/showcase\/thirdsectorprotect\/\"><strong>LinkedIn<\/strong><\/a>.&nbsp;<\/em><\/span><\/p>\n<table width=\"124\">\n<tbody>\n<tr>\n<td><span style=\"font-family: arial, helvetica, sans-serif;\"><em><a href=\"https:\/\/www.facebook.com\/ThirdSectorProtect\/\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-2152\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2018\/09\/facebook.png\" alt=\"\" width=\"120\" height=\"120\"><\/a><\/em><\/span><\/td>\n<td><span style=\"font-family: arial, helvetica, sans-serif;\"><em><a href=\"https:\/\/twitter.com\/ThirdSecProtect\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-2154\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2018\/09\/twitter.png\" alt=\"\" width=\"120\" height=\"120\"><\/a><\/em><\/span><\/td>\n<td><span style=\"font-family: arial, helvetica, sans-serif;\"><em><a href=\"https:\/\/www.linkedin.com\/showcase\/thirdsectorprotect\/\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-2153\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2018\/09\/LinkedIn.png\" alt=\"\" width=\"120\" height=\"108\"><\/a><\/em><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n","protected":false},"excerpt":{"rendered":"<p>Charity Reserves Despite the legal requirement for registered charities to include their reserves figures in their trustees annual report, recent&nbsp;data&nbsp;revealed less than 25 per cent of charities with incomes of over \u00a3500,000 actually provided the correct charity reserves figure in 2018. Charity reserves are defined as a portion of a charity&#8217;s unrestricted funds that are [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[3,112,14],"tags":[109,110,111,40],"acf":[],"_links":{"self":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts\/2536"}],"collection":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/comments?post=2536"}],"version-history":[{"count":2,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts\/2536\/revisions"}],"predecessor-version":[{"id":6816,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts\/2536\/revisions\/6816"}],"wp:attachment":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/media?parent=2536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/categories?post=2536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/tags?post=2536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}