Proposed SORP Threshold Could Burden Small Charities, Audit Firm Warns

The lowest income threshold of £500,000 proposed for the next version of the charities accounting framework is too low and could burden smaller charities, audit firm RSM UK has said.

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The updated version of the Charities Statement of Recommended Practice (SORP), a consultation on which closed today, proposes three tiers of guidelines based on annual income levels, the lowest of which is £500,000. Nick Sladden, partner and head of charities at RSM UK, said that while introducing three tiers was a “positive step towards supporting proportionality”, the £500,000 threshold “risks putting additional burden on smaller charities”. Read more here.