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Financial stress behind a jump in charities filing late accounts
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Cuts and donation drops have seen groups axe jobs in accounting and finance departmentsThe number of charities filing their accounts late is a sign of the financial stress the sector is under, according to experts.
These include falling donations and government funding cuts creating more uncertainty over the financial position of many charities.
This, as well as the complexity of charity accounting regulations, means they are struggling to meet deadlines or delaying the filing of accounts.
Hazra Patel of chartered accountants Lubbock Fine said that some charities are delaying filing accounts that they know highlight undesirable results as they do not want to shake the confidence of their donors and other stakeholders.
However, she added that delaying the filing of accounts can achieve the opposite, as a missed filing deadline can raise alarm bells about the financial stability of a charity.