CPD for Charity and Not-for-Profit Finance Professionals

Finance in the Charity Sector

The charity and not-for-profit sector in the UK employs a large and growing finance community - from small voluntary organisations with part-time treasurers to major charities with professional finance functions running budgets of hundreds of millions. Finance professionals in this sector face sector-specific accounting standards, regulatory requirements from the Charity Commission, and increasing scrutiny of governance and financial controls.

Charity-Specific Accounting: SORP

Charities in the UK prepare accounts under the Charities SORP (Statement of Recommended Practice) - currently FRS 102-based. The SORP governs how charities present income (distinguishing restricted, unrestricted, and endowment funds), expenditure analysis by activity, and fund accounting. Finance professionals moving into the charity sector from commercial roles need to understand these distinctions - fund accounting in particular is quite different from commercial profit and loss presentation.

Regulatory Requirements

Charities above certain income thresholds must have their accounts independently examined or audited. The Charity Commission for England and Wales, OSCR in Scotland, and the Charity Commission for Northern Ireland each have specific regulatory requirements. Finance professionals working with large charities need familiarity with the statutory framework for charity accounting.

Housing Associations

Registered providers (housing associations) are regulated by the Regulator of Social Housing. They use the Housing SORP and have specific requirements around social housing grant accounting, component accounting for properties, and viability reporting.

CPD Priorities for Charity Finance

Charity SORP updates, gift aid and tax relief (Gift Aid makes up a significant income stream for many charities and requires technical understanding), VAT partial exemption (many charities have complex VAT positions), restricted fund management, and governance and trustee engagement are the core CPD areas for charity finance professionals.

Professional Support

CIMA, ACCA, and ICAEW members in the charity sector can access sector-specific resources through CIMA Charitable and Voluntary Sector SIG, ACCA's public sector interest group, and the Charity Finance Group (CFG) - the specialist body for charity finance professionals in the UK.

Further Reading

• CPD for Accountants
• Charity Accountant Career Guide
• Public Sector Finance

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