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The trustees’ report is the charity’s opportunity to “tell its own story in its own words”. This is of paramount importance given the recent poor publicity the charity sector has faced – for example, concerns over fundraising, concerns over how much of a charity’s money is actually spent on charitable activities, concerns over governance (following the collapse of Kid’s Company) and the role of various charities in the inquiries into child sexual abuse etc.
A good trustees’ report:
Gives context to the accounts and nances of the charity and prevents the gures being interpreted incorrectly
Demonstrates that the charity is using its resources wisely and for the purposes intended
Satis es the public bene t reporting requirement. One of the de nitions of a charity is that it provides public bene t. This is now policed actively, but a good trustees’ report should demonstrate very ably the bene t being provided and the impact the charity is having on society generally through its work
Shows that the charity is well organised and managed properly
Demonstrates that the charity is carrying out its activities ef ciently and
effectively; and
Attracts new resources to the charity (people and money) enabling the charity to continue its work i.e. it acts as an effective “marketing tool”
WILL THE TRUSTEES’ REPORT BE READ BY ANYONE?
This is a question that is often asked and many charities would be genuinely surprised by the number of people who probably access the report. Along with the charity’s accounts, the report will be available on the Charity Commission’s website. Many members of the public are aware of this and will look up a charity should they become interested in it or need to deal with it in some context. For example, in the case of religious institute charities, it is probable that the following may wish to access the report:
Members of the religious institute itself – we all like to know what others are saying about us!
Members of other religious institutes who may be curious
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