The Charities SORP is a Statement of Recommended Practice which sets out how charities should prepare their annual accounts and report on their finances.
The Charities Statement of Recommended Practice (the SORP) provides guidance to charities on how to apply the financial reporting standards which apply in Ireland and the UK. The SORP is not a legal requirement in Ireland but many Irish charities have voluntarily adopted it in order to follow best practice in relation to financial transparency.
The SORP encourages all charities to consider voluntary adoption of the framework.
SORP has a massive role to play in a charity as it assists them in providing financial information about their activities and resources to bring greater public transparency and regulatory accountability to the work of the charity sector
Based on an analysis of all of the financial statements filed by Irish non-profits since 2015, it was discovered that just 12% of Ireland’s incorporated charities currently file financial statements using Charities SORP on a voluntary basis.
At UHY FDW we have worked with many charities to assist in seamlessly implementing the SORP framework. It is not currently a legal requirement but it will be in the near future and we advise it is best practice to implement it.
We can help your charity implement the SORP framework seamlessly. Contact our charity specialists to discuss how we can assist you.
Contact: martinagribben@fdw.ie for more info