Re: Non Profit guaranteed company

vajark
vajark Registered Posts: 7 New contributor 🐸
Hi, I need help.

I am going to work on an small non profit guaranteed company as a volunteer, but really not sure how this sort of organisation works. Can someone advise me please -

1. How to deal with HMRC -tax returns, filing.
2. What sort of books I should prepare to record..
3. Other thing I have to be careful about

They receive 'ring fenced' funds from 4-5 places needs to do matching against the applications in year end, and also raised money as 'non-ring fenced' from auction and donation.
Their year end is 04 April 2011, set up June 2009, hasn't done any tax returns yet.

Thanks.

Comments

  • wildgoose1uk
    wildgoose1uk Registered Posts: 200 Dedicated contributor 🦉
    I am guessing you mean it is a charity which is a company limited by guarantee in which case you will have both a charity number and a company number for it.

    It will need you to have an understanding of restricted funds and non restricted funds and also of fund accounting. You will also need an understanding of the Charity SORP.

    You will find the Charity Commission website a mine of useful information in terms of how to account and how to present the accounts.

    Additionally I can recommend a book by Kate Sayer of Sayer Vincent called 'A Practical Guide to Charity Accounting' which seems to be being reprinted at the moment. There may be better more recent books available but this is the one I cut my teeth on so to speak.

    How much effort and financial investment you put into setting up the accounts depends in part on turnover and how complicated the accounts are.

    it involves too much to be specific here but have a look at the above.
  • RAS
    RAS Registered Posts: 124 Dedicated contributor 🦉
    I would be careful, just because it is a non profit making company, it does not mean it is always a charity. It is quite a specialised area, so unless you are getting proper supervision by someone, you could get yourself in a right mess. Good luck with it.
  • wildgoose1uk
    wildgoose1uk Registered Posts: 200 Dedicated contributor 🦉
    True..... but as it has volunteers, donations, and restricted funds I think the balance of probability is that it is a charity.
  • vajark
    vajark Registered Posts: 7 New contributor 🐸
    That is one thing confused me. This is a charitable organisation but not a charity, no registration number. It's a company limited by a guarantee, has got a company number. There are share holders, but non profit organisation.

    I had a look Kate Sayer's site, her books look good and will give me an idea where to
    start.

    Thank you very much. If there is further information, please let me know.
  • RAS
    RAS Registered Posts: 124 Dedicated contributor 🦉
    To be honest if you are doing this on a voluntary basis, I would leave it alone as it there appears a lot of unanswered questions. Unless there is someone in the organisation who can give you some definite answers and guidance it does seem that you are going to put your head on the chopping block for no reward. It is a specialist area.
  • vajark
    vajark Registered Posts: 7 New contributor 🐸
    I understand what you mean. I agree with you. It can be a big challenge but I have a feeling I will be stuck in the middle of nowhere.
    Thank you for your advice.
  • wildgoose1uk
    wildgoose1uk Registered Posts: 200 Dedicated contributor 🦉
    Sound advice from RAS
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