CHARITIES - SERVICES WE PROVIDE

Campbell Dallas has a large portfolio of charity and not for profit clients. We recognise that the days of taking on such clients “as a favour” and passing the work to an inexperienced trainee are long gone. Over the last decade there have been very significant changes in this sector, some of which are common public knowledge:-

• High profile frauds in charity organisations;
• The Introduction of the Office of the Scottish Charity Regulator (OSCR);
• The introduction of The Charities and Trustee Investment (Scotland) Act 2005, and the related Regulations (The Act).

One other major change that is possibly not as apparent to the public as it is to professional advisers involved in this sector, is the adoption of a much more commercial approach by trustees to the running of their charities.

Trustees recognise that with the number of existing charities, the majority of whom are viewed as worthwhile and supporting good causes, competing for donations from the public, grant-making bodies and central and local government, there is no room for complacency. To attract funding charities must:-

• Adopt a commercial approach to fund raising;
• Adopt robust governance to the operation of the charity;
• Seek the best professional advice available to them.

What We Do
At Campbell Dallas we recognised the changes in the sector and made a conscious decision to continue to support the sector and to adapt our service provision to the sector needs.

We have set up a dedicated Charity Team, headed up by Nellie Buchanan, a partner who is also the financial director of a high profile national charity. Nellie is supported by staff from our Audit and Accounts Department, General and Specialist Tax Departments and Secretarial and Payroll Department.

We recognise that the introduction of The Act, OSCR and the update of “Accounting and Reporting by charities”- the Statement of Recommended Practice (The SORP), together with the introduction of new and updated accounting guidelines, pose significant challenges to trustees. We aim to provide a service that is proactive, caters for the needs of new and existing clients and is pitched at a competitive price.
A summary of recent developments in the sector and how we are tackling these is summarised over:-

Qualification As A Charity
The Act states that Charities must pass a charity test either to obtain or retain charitable status. We are able to give pro-active advice on this issue;

Operating Vehicle For The Charity
Currently charities can either be incorporated or unincorporated, the benefit of incorporation being limited liability to the members. We discuss with start up charities the most appropriate type of structure to suit their needs;

Accounts Preparation And Audit Requirement
Not all charities require a statutory audit. Depending on the size of the charity and the wording of its constitution, there is a possibility that an audit may not be required and that either an independent examiner report or a receipts and payment account may be more appropriate. We discuss this with the trustees and confirm that they are adopting the most appropriate form for their own charity, based on commercial, governance and fund raising criteria.

We pride ourselves on presenting a service that is

• Robust;
• Cost effective;
• Risk based;
• Highly commercial, focusing on key business issues.

Trustees’ Responsibilities And Governance
Recent legislation indicates that OSCR will be focusing on a charity’s governance and that the trustees are fulfilling their responsibilities.

We are able to carry out an independent appraisal of the systems in place to comply with these requirements and report back with our findings and recommendations.

Specialist Tax Services
Tax legislation generally affords substantial reliefs to charities for income and capital gains tax. What is not so clear is the position on Value Added Tax and trading income for charities and charity subsidiaries.

The members of our Specialist Tax Department assigned to the charity sector team can give comprehensive practical advice on these issues.

WHO TO CONTACT
Should you require advice on any of the above please contact
NELLIE BUCHANAN: telephone: 0141 887 4141 email: nellie.buchanan@campbelldallas.co.uk