1st Friday
Tax Chat

Charity Hallmark No. 5 – Financially sound and prudent

Charity Hallmark No. 5 – Financially sound and prudent

An effective charity has the financial and other resources needed to deliver its purposes and mission, and controls and uses them to achieve its full potential.

In order to demonstrate this:

  • Does your charity have policies to control and manage its reserves, investments and borrowing, taking professional advice where needed? Yes/No
  • Does your charity integrate financial planning with wider organisational planning and management, ensuring that funds are available when the charity needs them and are used in the most effective way to the benefit of the charity? Yes/No
  • Does your charity ensure financial sustainability by managing cash flow and monitoring and reviewing financial performance during the year, taking timely corrective action where needed? Yes/No 
  • Does your charity consider the sources of its income and has a strategy in place to raise the funds it needs – diversifying its sources of income as far as possible? Yes/No 
  • Does your charity review its fundraising strategies and activities to ensure that they comply with good-practice standards, taking account of any relevant ethical issues? Yes/No
  • Does your charity make itself aware of the financial risks involved with existing and new ventures and manages the risk of loss, waste and fraud by having robust financial controls and procedures in place? Yes/No
  • Does your charity structure its activities in a tax efficient way and minimises the operational risk to the charity from trading activities? Yes/No 
  • Does your charity prepare its Annual Report and accounts in accordance with good practice requirements, and fulfils the legal requirements for filing in a timely fashion? Yes/No

If you have answered “no” to the questions above, please give us a call on 01484 538351 or email us at