The hand of government in shaping accounting and reporting in the UK charity sector

Abstract

Accounting in the UK charity sector has changed massively over the past 25 years, with various stakeholders influencing what has occurred. Using insights from stakeholder theory, and interviews with a number of key actors, this article focuses on the influence of one definitive stakeholder—government—in developing a regime of quality accounting and reporting in the sector. In particular, the evolution of the Statement of Recommended Practice (SORP) for charities is explored. It is argued that a much tighter and more meaningful regime of accounting and reporting has been encouraged by government, among other stakeholders, and this has led to a more accountable and healthier charitable sector.

Notes

^* This is just one estimate of the number of general charities in the UK (England, Northern Ireland, Scotland and Wales) and other estimates differ. In addition to general charities, there are a number of exempt charities (mostly universities, educational institutions and national museums), which are not required to register and are not subject to the Charity Commission's supervisory powers, and excepted charities (including religious charities), which are not required to register but are subject to the supervision of the Charity Commission. Therefore the total number of charities, and their economic impact, is considerably higher.

Additional information

Notes on contributors

Noel Hyndman

Noel Hyndman is Professor of Management Accounting and Director of Research in Accounting at Queen's University Management School, Belfast.

Danielle McMahon

Danielle McMahon is a Teaching Fellow in Accounting at Queen's University Management School, Belfast.