Standards and Annual Reporting Guidelines (RJ 650 for Fundraising organisations)
The charitable sector is in a state of flux. There have also been changes in the area of standards and annual reporting and further changes are in preparation. What impact are they having and will they have on your organisation?
The Charity Recognition Standards Committee held consultations in the summer of 2018 for the new recognition scheme standards. The modified standards will apply to recognised organisations from 1 January 2018.
The committee’s modification proposals refer for instance to the subject of ‘integrity’. Following on from this, standards have been proposed for explaining the integrity of the organisation in the annual report.
The current recognition scheme sets out that the costs of fundraising, calculated over the past three years, on average do not exceed 25% of the income from the organisation’s own fundraising. This standard no longer follows on from the revenue breakdown under the modified RJ 650.
The proposal is to replace the current standard with a target spending standard. The replacement standard introduced with these modification proposals relates to the target spending in respect of the total costs.
The main reason for the modification of the Annual Report Guidelines (RJ) 650 for ‘Fundraising organisations’ is the advent of the recognition scheme from 1 January 2016. The largest fundraising organisations (category C and D) must, to be recognised, apply the modified RJ 650 in full. The amended Guidelines 650 for Fundraising organisations are effective for financial years starting on or after 1 January 2017.
Mazars can help you with:
- Applying the amended recognition scheme correctly in the annual reporting from 2018.
- Setting up and conducting a risk analysis to come up with a well-funded continuity reserve.
- Problems classifying income by source, such as the distinction between income from private individuals and income from businesses.
- Applying the new income section (Income as consideration for the provision of products and / or services) for activities of a commercial nature.
- Determining the correct method of processing legacies encumbered with right of usufruct.
Want to know more?
Would you like to know more about the new recognition scheme standards and the Annual Reporting Guidelines (RJ 650)? Please contact Maurice Quaedvlieg (by email or by telephone: +31 (0)88 277 17 95) or Marisa Noronha (by email or by telephone: +31 (0)88 277 20 04). They will be happy to help you.