The Charities (Amendment) Bill 2022 currently sits with the Oireachtas to be passed into legislation. Once this bill has been passed, we will see considerable revisions made to the Charities’ Act 2009. The enforcement of Charities SORP (FRS 102) becoming mandatory for organisations that meet the threshold is one such revision.
The bill is on track to be passed by the end of this year and will impact accounting periods from the 1st of January 2025. Meaning mandatory Charities SORP will be in effect for year ends 31st of December 2025.
The revised legislation will affect all charities in Ireland. It is understood that the current exemption in place regarding educational bodies will endure, however, the same cannot be said for university foundations which will find themselves no longer exempt. It is also understood that any charity will be able to prepare in line with another industry-wide recommended practice (such as Housing SORP for example).
What are the next steps?
- You must ensure that from your 2024 accounting period the information recorded in the accounts package is in line with SORP (or presented in the SORP format in charities management accounts). SORP will require two years of figures along with their breakdowns between restricted and unrestricted.
- Prepare a working to make sure that reserves are split between restricted and unrestricted where appropriate.
- Attend any webinars available over the coming months to help you navigate these changes. Keep an eye out on our upcoming courses page here.
- Determine whether your current accounts package is suited to the needs of Charities SORP postings, and if not – make the necessary changes.
Ensuring your organisation is fully compliant when Charities SORP is introduced is crucial in navigating these changes without incident.
The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accepts no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article. The information at the time of publishing was accurate and could be subject to final changes.