The draft includes almost all the recommendations made in the CFDG report, including changes to explain more clearly details of income sources and fundraising costs.

CFDG's most controversial proposal, however, that charities should include a financial figure for volunteers' time in their statement of financial activities, is not included in the draft. Nevertheless, the CFDG points out that the draft does encourage trustees to give a full explanation of the contribution volunteers make to the activities of charities.

"We wouldn't expect charities to develop and implement precise time recording systems for volunteers, but their part in helping charities achieve as much as they do must be recognized," said CFDG trustee and finance director of the MS Society Helen Verney. "Trustees should make sure that everyone who reads their report knows about them."

Shirley Scott, chief executive of CFDG, also welcomed the draft: "The aim of the SORP and of the Inputs Matter report is to improve the quality of reporting in the charity sector so that all those engaging with the charity, whether as trustee, employee, funder or beneficiary, can fully understand what the charity does and how it acquires and uses the resources available to it. We believe that adhering to the new SORP will help charities to achieve that aim."