Some organisations perpetuate the myth of zero overheads and it is damaging the rest of the sectorAs a result of public scrutiny,the way charities explain how they spend their money is changing. From raising funds to running an office, many close-of-year reports now offer a fuller picture of an organisation – rather than just what is spent on providing a service for beneficiaries. The fresh accounting regime (SORP) will also mean that this trend will continue. Reporting will become even more focused on what charities have done, and why they have done it and how this is making a disagreement. This impact-focused reporting will justify why organisations exist and will mean that the days of charities stating that they spend 100% of public donations on charitable activity will,hopefully, soon be over.
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Source: theguardian.com