Transparency and accountability in charity finances supports public confidence in charities.
Every charity in Scotland is legally required to prepare a trustees’ annual report and accounts and to submit these to OSCR. These are published on the Scottish Charity Register if the charity is a SCIO or its income is £25,000 or more. Where the charity has income of £250,000 or more or where it is a company of any size, it must prepare its accounts in line with the Charities Statement of Recommended Practice (SORP).
The SORP has specific requirements for the trustees’ annual report in relation to investments where the charity has income of £500,000 or more. These include:
There are also further requirements that need to be understood - more information is available in the SORP on how investments must be accounted for and what information must be included in the charity’s annual report and accounts about investments.