VAT Compensation Scheme for Charities
The VAT Compensation Scheme for Charities, announced in Budget 2018, is now open for application in respect of the year ended December 2018. Intended to alleviate the VAT burden on charities, and to partially compensate for VAT incurred in the day to day running of charities, the initiative applies to VAT incurred in expenditure on or after 1 January 2018. Claims must be submitted by the 30 June of the year following the calendar year to which the claim relates. VAT paid prior to 1 January 2018 cannot be reclaimed.
Brexit risks for the Not-For-Profit sector
The outcome of Brexit, and the UK’s future relationship with the EU, remain uncertain. Come March 2019, there are broadly two potential scenarios: a “no deal” scenario, where time runs out and the UK leaves the EU with no agreement and trades under WTO terms, or a scenario where a deal is reached between the UK and the EU on the terms of a withdrawal and a framework for a new relationship.
Both scenarios present significant risks, and opportunities, for all business sectors, not least the not-for-profit sector, with approximately 50% of all EU workers currently in the UK working in charitable organisations. This presents an obvious staffing challenge to the sector and charities should consider how they can offer support to their EU colleagues in light of the current uncertainty.
Statement of Recommended Practice for Charities - update
In December 2017, the Financial Reporting Council (FRC) published their first Triennial Review of Financial Reporting Standard 102 (FRS102), being a series of incremental improvements and clarifications developed in response to stakeholder feedback received on the original standard. The updated standard was published in March 2018 and is mandatory for financial periods beginning on or after 1 January 2019, with early adoption permitted.
In response to the changes to FRS102, Charities SORP Update Bulletin 2 was published in late 2018, to bring the existing SORP into line with the revisions to FRS102.
Telling your story – Financial reporting by Charities
Ireland’s not-for-profit sector comprises over 23,000 community, voluntary and charity organisations both north and south. All are unique in their own way and many have to ‘up their competitive game’ in order to attract the attention of donors and grant awarding bodies. How a charity tells its own story can be extremely helpful in raising awareness, as well as funds, to support the charitable activities that it undertakes. The charity’s Annual Report affords a great opportunity to do so.
We are individually responsible for Corporate Social Responsibility
It is said that positive corporate atmosphere is generated by a collective of positive individuals no matter what the size of that organisation is. Having a positive work culture allows for a more productive and motivated work force. There are numerous studies carried out which will back this theory up.
Nurture and embrace the individuality of your organisation and the socially responsible individuals within it.