Accountant for Charity

Specialist Accountants For Charity

Contrary to popular belief, charities are not tax exempt. However, while there are actually various taxes that charities need to pay, accountants from our respected network of finance professionals can assist nonprofit organisations in reducing the amount of money they have to give away in tax.

As a result, these bodies can financially streamline themselves and free up more money to redirect to good causes. We have the knowhow to find accountants who are especially primed to hold the hands of charities as they navigate a raft of legislative and regulatory requirements.

In tough economic times, NPOs are unable to rely just on their good intentions. They also need a practical insight into how to ensure they are paying all of the tax they owe while also claiming much-needed tax reliefs. Specialist accountants can help charities to meet all of these ends.

What Is A Charity?

What legally counts as a charity can depend on the jurisdiction in which it operates. In England and Wales, for example, a charity must — as per the Charities Act — be established for strictly charitable purposes and be subject to the control of the High Court’s charitable jurisdiction.

The Charities Act also describes examples of what it deems charitable purposes. These include — but are certainly not limited to — preventing or relieving poverty, advancing education, religion or health and promoting the efficiency of the police, fire and rescue services.

The Act acknowledges that it does not explicitly list all of the purposes that can be recognised as charitable. Therefore, the word ‘charity’ could often be seen as having a cultural, rather than simply technical, definition.

How Can Accountants Assist Charities In Their Work?

Many accountants have spent years working with clients in the third sector, and so know what particular financial challenges they tend to face. You can also expect a specialist charity accountant to keep themselves up to date on tax law relevant to this sector.

Given how cash-strapped many charities can be, they can come to hugely appreciate having an accountant at close hand to provide them with expert guidance — such as on how to claim tax relief on Gift Aid donations, trading profits and Capital Gains Tax.

You could even benefit from consulting an accountant for charity if the charitable organisation in question has yet to be established. This accountant could guide you through various stages of the charity setup process — including deciding on a legal structure and dealing with HMRC.

The accountant can also prepare a charity’s annual accounts and even undertake an audit or independent examination of the charity in order to ascertain any ways its existing financial systems could be adjusted for improved tax efficiency.

How Contractors Can Find The Right Accountant

Charities exist in many forms — including as homeless charities, grant-making charities and student unions. However, regardless of your own charity’s structure or purpose, we can — at no financial charge to you — put you into contact with an accountant who has been judged as highly capable of accommodating your organisation’s requirements.