A report published by the Charity Commission has shown that many charities may “often overstate governance costs” in their public annual returns or accounts.
The report, published today by the Charity Commission as part of its Accounts Monitoring Review, identified 76 charities with incomes of over £500,000 that appeared to have high governance costs of more than 20 per cent of total expenditure.
The results suggest that only three of the 76 charities (4 per cent) reviewed had “a reasonable explanation for the figures they reported. Some 66 of the organisations (87 per cent) had incorrectly allocated costs to governance costs that should have been included in other categories of expenditure, including charitable expenditure."
The remaining seven charities were found to have incorrectly filled out their annual returns or accounts.