Charities and not-for-profit organisations face a distinct financial reporting environment, shaped by the Charities SORP, Charity Commission requirements, restricted and unrestricted fund management, and the governance expectations of donors, regulators, and beneficiaries. Elberra Consulting provides specialist accounting and financial advisory services for UK charities, community interest companies, and other not-for-profit organisations.
Unlike commercial businesses, charities must account for their income and expenditure in a way that reflects the purpose and restrictions attached to each funding stream. The Statement of Recommended Practice (SORP) for charities — produced under the FRS 102 framework — prescribes specific presentation requirements for the Statement of Financial Activities (SoFA), Balance Sheet, and Cash Flow Statement.
Failure to apply SORP correctly can lead to qualified audit opinions, Charity Commission regulatory action, and reputational damage. It can also complicate grant applications where funders scrutinise financial statements to assess organisational health.
We prepare statutory accounts for charities of all sizes, ensuring full compliance with the Charities SORP (FRS 102) and any sector-specific supplementary guidance. Our accounts present your financial position clearly and accurately — satisfying Charity Commission filing requirements and providing the transparency your stakeholders expect
Charities frequently hold multiple funds with different restrictions, sources, and purposes. Effective fund accounting ensures that restricted funds are spent in accordance with donor intent, that any unused restricted funds are correctly classified, and that your management accounts provide a clear picture of your financial position across all fund categories. We set up and maintain fund accounting systems tailored to your organisation.
Grants bring financial reporting obligations. We track grant income and expenditure against award conditions, prepare grant monitoring reports for funders, and advise on the accounting treatment of grant conditions — including performance-related grants, capital grants, and multi-year awards. We also support organisations through grant audit processes.
Charities with an annual income between £25,000 and £1 million are typically required to have their accounts independently examined rather than formally audited. Our independent examiners review your accounts in accordance with the relevant Charity Commission guidance, providing the assurance your trustees and beneficiaries require at a proportionate cost.
For larger charities subject to statutory audit, we work alongside your appointed auditor to prepare comprehensive audit-ready accounts and supporting documentation. We also advise on audit findings and management letter points, helping your finance team and trustees understand and address issues raised.
Trustees have a legal duty to exercise financial oversight of their charity. Many trustees — particularly in smaller organisations — lack formal finance training. We provide clear, accessible financial reports for trustee boards and can deliver trustee training sessions covering financial governance, SORP basics, fund management, and risk management.
Effective financial management requires timely, accurate management information. We prepare monthly or quarterly management accounts for charity clients, including income and expenditure by fund, budget variance analysis, cashflow forecasts, and narrative commentary designed for non-financial trustees and senior managers
Charities benefit from a range of tax reliefs and VAT concessions, but navigating these reliefs requires specialist knowledge. We advise on Gift Aid, payroll giving, VAT recovery on mixed activities, business rates relief, and other tax matters relevant to your organisation. We also handle HMRC correspondence and annual tax filings.
At Elberra Consulting, we believe that effective financial management is the foundation of lasting social impact. Our tailored accounting solutions allow you to focus on your purpose — while we ensure your finances remain transparent, compliant, and sustainable.
We begin by understanding your goals and systems to shape a strategy that fits your operations.
We develop clear, data-driven plans with actionable steps and timelines to achieve measurable results.
We collaborate with your team to deploy systems, processes, and training that ensure smooth execution.
We monitor performance and refine strategies to maintain lasting compliance and efficiency.
Unrestricted funds can be used by the charity for any purpose that advances its charitable objects. Restricted funds are subject to conditions imposed by the donor or funder — they must be spent on specific activities or projects. Endowment funds are a further category, where the capital must be preserved and only the investment income may be spent. Correct classification is essential for SORP compliance.
A statutory audit is required if your charity’s gross income exceeds £1 million in any financial year, or if its gross assets exceed £3.26 million and gross income exceeds £250,000. Some charitable companies may face additional requirements under company law regardless of income threshold.
Yes. We advise on and implement accounting software appropriate for not-for-profit organisations, including fund accounting modules. We also provide training for finance staff and trustees to ensure the system is used effectively and produces the management information your organisation needs.
