Accounting for Charities & Non-Profit: What to Look For
Charity accounting follows the Charities SORP, which requires fund accounting, specific trustee disclosures, and Charity Commission reporting. Charity accountants handle restricted and unrestricted fund management, Gift Aid claims, trading subsidiary structures, and the complex VAT partial exemption rules that apply to charitable activities.
General guidance reviewed 12 July 2026 · How we review content
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VAT Returns
Accurate VAT registration, returns, and compliance.
Payroll
Reliable payroll processing, PAYE, and pension auto-enrolment.
Bookkeeping
Professional day-to-day financial record keeping.
Annual Accounts
Statutory annual accounts preparation and filing.
Tax Planning
Strategic tax planning to minimise your tax liability legally.
Audit Services
Independent statutory and voluntary audit services.
Charities & Non-Profit Accounting FAQs
When does a charity need an audit vs independent examination?
Charities with income over £1 million must be audited. Those with income over £250,000 and assets over £3.26 million also need an audit. Below these thresholds, an independent examination is usually sufficient. Charities with income under £25,000 have the lightest reporting.
How does Gift Aid work?
Gift Aid allows charities to claim 25p for every £1 donated by UK taxpayers who have signed a Gift Aid declaration. The charity claims basic-rate tax back from HMRC. The Gift Aid Small Donations Scheme covers small cash and contactless donations without individual declarations.
Can charities trade commercially?
Charities can trade in pursuit of their primary purpose tax-free. Non-primary-purpose trading below £80,000 (or higher thresholds for larger charities) is exempt. Larger commercial trading should be conducted through a trading subsidiary that Gift Aids its profits to the parent charity.
Looking for Charities & Non-Profit accountants?
Review the questions to ask, then check claimed profiles for explicitly confirmed charities & non-profit experience.
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