Complete guide to preparing charity annual reports and trustees' annual reports for the Charity Commission. Learn about content requirements, disclosure requirements, and best practices.
The trustees' annual report is a crucial component of charity accounts that provides context and narrative about the charity's activities, achievements, and future plans. It accompanies the financial statements and is submitted to the Charity Commission as part of the annual return.
The report must provide a fair review of the charity's structure, activities, and objectives. It should be balanced, comprehensive, and enable readers to understand the charity's achievements and the difference it makes.
Specific disclosure requirements apply depending on charity income and structure. Trustees must ensure the report accurately reflects the charity's activities and complies with SORP and Charity Commission requirements.
The report must describe the charity's purposes (as set out in its governing document), main activities undertaken to achieve those purposes, and the achievements and outcomes of those activities.
The report must include details of trustees who served during the year, recruitment and appointment methods, and any relevant training or induction provided to trustees.
The report should include a review of financial position, principal sources of funding, investment policy, and reserves policy. This provides transparency about how funds are managed.
Larger charities must include a statement on risks and uncertainties, and details of any safeguarding policies and incidents. This provides important accountability to stakeholders.
Our specialist charity accountants can help you prepare a comprehensive trustees' annual report that meets all regulatory requirements. Contact us today for assistance.