Ahead of a campaign to target thousands of charities which are in default over filing their accounts on time, the Charity Commission has published samples of the excuses which it says have been used to explain the omission and which are unacceptable
They include the message ‘I don’t have access to the internet’ which was submitted via email; the statement ‘I’m not involved with this charity’s requirements, I am a trustee’; and ‘I already did it…last year.’
The commission says the range of excuses for not filing accounts is diverse, from ‘Your website was closed’; ‘My boot came open on the motorway and the papers went down the M1’; ‘The person with the password is in Malaysia’; ‘Our computer caught fire and we lost all the financial data’; to the ‘Deadline day falls on a religious holiday so we couldn’t file’ [sent by a multiple defaulter].
All charities with income over £25,000 are required to submit accounts, but thousands are in default, indicating a lack of transparency.
The commission cites research from 2015 which found that 3% of accounts submitted were not of ‘adequate quality’ in the 12 months up to 31 March 2013 – based on a random sample. This represents an improvement from the previous year analysed, where nearly half (46%) were inadequate.
However, the commission says it will be targeting those in default as part of a campaign to be launched later this month.
William Shawcross, chairman of the commission said: ‘Although these excuses are amusing, there is a serious point – after a difficult year for charities, it is essential they do all they can to be open about their finances.
‘I hope trustees take note and file their accounts. If not, they could be hearing from the commission soon.’
The regulator is advising trustees to follow three key steps. These are not to wait until the 10 month deadline but to submit documents when they become available; to ensure that they have access to the commission’s online services or ensure that they know who within the charity has the password; and to know that submission is the collective responsibility of the entire trustee body, not just the treasurer or secretary for example.
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