The Charity Commission has published its proposals for revising the SORP.

The last revision took place in October 2000. Since then a number of recommendations have been made, both by the sector and by the Government in its report Private Action, Public Benefit. It is widely believed that charities need to be more consistent and provide more details in their reporting than at present. The proposals set out in the draft published for consultation, aim to reflect this.

As well as suggesting an enhancement of trustee annual reporting and an emphasis on the disclosure of the activities, services, programmes and projects undertaken by a charity, it also proposes that the Statement of Financial Activities (SofA) should be restructured in order to provide a clearer understanding of the financial implications of these activities.

“This review of the Charities SORP carries a heavy burden of expectation,” says David Taylor, charity commissioner and Chair of the SORP Committee. “We have sought to address sector needs, taken on board new accounting standards and developments in the sector. What’s more, it addresses calls for greater consistency in cost allocations, and creates a focus for better reporting of objectives, activities undertaken and the achievements and impacts that result.”

Background information and a summary to the key changes are provided in the “Invitation to Comment”, which accompanies the draft text on the commission’s website. Both documents can be downloaded from www.charitycommission.gov.uk