Tag: RSM UK

Charities need consistency in financial thresholds, says RSM UK

Stuart Mitchell

In response to the Department for Culture, Media and Sport’s (DCMS) consultation on financial thresholds in charity law and whether they should be increased in line with inflation, RSM UK says charities need consistency in financial reporting obligations, and requirements should be proportionate to the size of the charity. Nick Sladden, partner and head of charities at RSM UK, said: “We welcome the government’s commitment to review these thresholds at least every 10 years, but it’s crucial this is upheld to ensure out of date regulations are not being relied…

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Charity mergers up 90% as organisations look for economies of scale

Stuart Mitchell

Consolidation in the charity sector has seen an annual jump of 90% – reaching a record high, according to analysis of Charity Commission data by RSM UK. The number of charities recording mergers increased from 174 in 2023 to 331 in 2024, as growing cost pressures led charities to consolidate to deliver economies of scale. With over 180,000 charities in England and Wales, mergers can offer several benefits to the sector including reducing the duplication of efforts and resource where multiple charities might have the same objectives. Nick Sladden, partner…

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More than one in four charities have not reviewed their reserves policy in last year

Stuart Mitchell

New findings show more than one in four charities (26%) have not reviewed their reserves policy within the last year, according to a survey by leading audit, tax and consulting firm RSM UK, leaving themselves at risk of failing to manage financial instability. This is particularly pertinent in the current economic climate. While the data found over a third (34%) of charity trustees had reviewed their reserves policy within the last three months and 40% within the last year, 11% of respondents had only reviewed it within the last two…

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Charity probe highlights need for robust record keeping, says RSM UK

Stuart Mitchell

As the Charity Commission launches a probe into an armed forces charity’s unaccounted funds, RSM UK is reminding trustees of the importance of keeping detailed, up to date records to avoid regulatory action and hefty fines. In this most recent case, auditors were unable to source records to account for £89,000 of expenditure and £151,000 of donations. Charities are advised to follow the recently updated Charity Commission guidance, ‘Internal financial controls for charities’, known as CC8, to ensure finances are properly managed and documented. Nick Sladden, head of charities and…

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