The Charity Commission has launched its first consultation to seek views on how best to reform the process for developing the Statement of Recommended Practice (SORP).
The regulator said it welcomes recommendations for any necessary changes to ensure SORP “remains fit for the future”.
The Charities SORP is the set of rules which governs charity accounting for charitable companies and larger charities (defined as those with an income of more than £250,000).
The consultation follows the recent expansion of the SORP-making body to include the Charity Commission for Northern Ireland and the Charities Regulatory Authority for the Republic of Ireland.
It is believed that the new SORP-making body will work towards promoting a common approach to high quality reporting by charities while maintaining local differences and legal requirements.
Announcing the consultation, Sarah Atkinson, Director of Policy, Planning and Communications at the Charity Commission for England and Wales said: “In order for charity to thrive, charities need to demonstrate thatthey meet the legitimate expectations of the public in everything they do. Transparency about the work they carry out and how their money is spent is critical to maintaining public trust. It is therefore vital that the process for developing the accounting framework inspires confidence and enables charities to report clear, reader-friendly information.”
Judith Hayhow, Head of Support Services at the Office of the Scottish Charity Regulator, added: “If the Charities SORP isn’t right, the accounts that charities produce won’t be right for those who need to use them.
That’s why we as regulators are committed to opening up and inviting feedback on the way in which the SORP is developed.”
The consultation will run for 10 weeks, ending on 4 February 2019. To read the full consultation document, please click here.