The income threshold before charity accounts have to be audited is increasing from £500k to £1m for year ends after 31st March 2015.

There are significant cost and regulation implications for charities that pass the threshold and this is good news for those growing charities that have been hovering close to that limit and those that have been just above it. This has certainly been the case for a number of the charities that I work with.

The change to the audit limit is, of course, not an excuse for poor financial management or lack of control. Strong financial controls and clear reporting to the trustees can enable good, well founded decision making and ultimately the protection of the charity and ensuring that donors can be assured that their donations are being used wisely.

The 3rd sector has been growing strongly over recent years with Government and Local Authority cutbacks has come a move towards charities and social enterprises filling the gap. However, this can be a tough business sector often run by volunteers or those that take very little for putting their heart & soul into helping people.

Charities and social enterprises need the support of the business community, not just in terms of donations but perhaps even more importantly in time and skills. Just because these organisations are run for other objectives than profit does not mean that their survival, management and growth is any less challenging or less in need of strong business acumen.