Apologies, it has been a while since I posted in here, but I have been really busy. I think I am now back in the land of the living.
I have a question that I am hoping someone can help with:
I am a member of a charity organisation, who raise money for any charity or welfare event that needs it. I used to be the treasurer, however this has passed on to someone else. We sell quiz sheets over a few months each year, and sometimes other charities sell them on our behalf. Some of the charities then send us 100% of the cash to us, and we then send a chq back for 50%, other charities only send us 50% and keep 50%. In the past (even before I was treasurer) we used to record this in the books as 100% coming into our account and 50% going out as a donation (all of our fundraising monies go out as donations to various places). The new treasurer has decided that this is unethical and is now only recording the 50% in our books, stating that it would be double accounting if we recorded the whole 100%. I don't think this is correct, as the charity receiving the 50% will be recording it as a donation income. It will also show the money we make on the quiz as less than we have, and show our donations to charities as a lot less than we have given. (about £3k in 50/50 donations). If we sold all of the quizzes ourselves, and then gave donations to those charities it would be shown as 100% in and 50% out. Please can someone tell me what the correct way should be?
Thanks in advance.
Carol
-- Edited by choccly-pops on Wednesday 7th of February 2018 03:41:03 PM
The charity is based in the UK (clubs all over the world though, with head office being in US) however, each club has it's own charity number and is registered with the charity commission. It is a non profit voluntary organisation (the admin costs are paid for by the club members) and it provides funds (donations) to other charities, puts on shows, takes people on trips, assists in sending children on a VSO trip etc.
The quiz is put together, printed and sold by the club, to the general public, and has our name all over it. It has the price on it, and is sold by everyone at this price. We leave say 20 in pubs for them to sell (we get 100% of the money), we give a number of the quiz sheets to other charities or friends to sell, some of which are agreed beforehand that it will be on a 50/50 basis. Some of these charities sell x amount, to the general public, by displaying them in their shop or wherever. As far as the public are concerned, the money is going towards my club, although we do state a list of a few of the charities we have helped/are helping. Some of the charities send us 100% of the takings, and we then send them a cheque for 50% as agreed. This goes into our books as 100% income and then a donation of 50% to the charity. However, some of the charities only send us a cheque for 50% of the takings, keeping the other 50% for themselves, as this saves on administration of us writing and sending a cheque back, and them having to bank it. These 50% receipts used to be input to the accounts on paper the same way the 100% receipts were, as effectively it is still a donation. However, the new treasurer is stating that this is unethical and that we should only show 50% coming in to our charity, and nothing going out.
I still might yet, depending on which way this thread goes. If it is in my favour there may well be a show, but if you all agree with the new treasurer then I'll slink off quietly into the night
He/she cannot use the 'ethics' line to dismiss an argument - he needs to use the regulation.
So - your pal has been given some info on Aweb, Im assuming he is still reading it as he hasnt come back on to answer the next batch of questions!
I wont repeat the information he has been given so far but can add some more documents to aid the discussions. Firstly the key here is that it is a UK registered charity registered with the charities commission - therefore it has to follow its guidance in the make up of its accounts. Ive not added a link to their site, its easy enough to get. But I have added the Charities SoRP (FRS102) which is the current regulation and covers this off
I am assuming that you do not state on the quiz forms that x% of the money from the sale of the quiz form goes to A.N. other charity, plus also that you are disregarding the prize money for the purposes of your enquiry
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
