Charity SORP

There are 29 modules in the SORP.  And they are in a somewhat random order! That is the bad news.The good news is that for most charities there are 6 which are particularly important and these are highlighted below.  The others [...]

There are 21 Tables in the SORP and 2 figures. That is the bad news. The good news is that most don’t apply to most charities. The important ones are highlighted below. Table Title SORP Page 1 Outline summary [...]

We are publishing the "The Plain English Guide to Implementing the Charity SORP" at the end of the year with a RRP of £20.

The Charity’s activities are the means of achieving its charitable objectives. They are defined in the Trustee’s statement. Unfortunately, although the initial definition is clear, the SORP then proceeds to use the term activity to also define the different classifications of [...]

There are essentially two classes of fund: Unrestricted and Restricted. Unrestricted funds can be applied for any of the charity’s activities. When they are set aside for a specific purpose, they are called Designated. The undesignated funds are called General. Restricted [...]

Charities are not businesses and therefore create surpluses or deficits in their income and expenditure.  These are accumulated year on year as fund, which are also described as reserves. Under the Charity SORP the surpluses and deficits are recorded against each [...]

The Statement of Financial Activities is the charitable equivalent of a Profit & Loss report for ordinary businesses, which is extended by including balance sheet information for the movement in the funds. It uses standard classifications of income and expense which [...]

Three-dimensional accounting simplifies the implementation of the Charity SORP. On every type of income (sales invoice) you record not only the classification of the income using the nominal or general ledger code for that income type, but also the fund that [...]

The SORP is extremely difficult to implement properly unless you have a multi-dimensional accounting system like Aedon.Accounting. Most charities use starter packages which have a business-oriented chart of accounts that might allow for different departments or cost centres, but certainly don’ [...]

The SORP is extremely difficult to implement properly unless you have a multi-dimensional accounting system like Aedon.Accounting. Most charities use starter packages which have a business-oriented chart of accounts that might allow for different departments or cost centres, but certainly don’ [...]