Charities continue to operate in a fast-changing world with lots of uncertainty and unknowns. To a large extent this has always been the case, but in recent times the pace of change and the rate of unexpected, or “once in a generation”, events has accelerated.
In this article, Nick Moore takes us through some theories and systems which might help charities manage through the new world of constant change, given that it seems like it is here to stay.
And while in some instances change is happening at breakneck speed, in others, events seem to be suspended in time. Like the date of the upcoming general election, for example, which we are still waiting for confirmation of.
In the world of charity finance, the publication of a new Charities SORP has also been long heralded. The current delay is due to the Financial Reporting Council’s (FRC) periodic review of FRS 102.
According to an update published on the Charities SORP’s website earlier this year: “The FRC published an Exposure Draft (FRED 82) in December 2022, proposing significant amendments to FRS 102 that would be effective for periods commencing on or after 1 January 2025. Based on this date, it was expected that the new Charities SORP would be published in August 2024.
“However, the FRC project update stated that the FRC currently expect to issue the final amendments to FRS 102 in the first half of 2024, with an effective date not before 1 January 2026. For this reason, the SORP-making body are re-considering the timeline for the publication of the new SORP.”
It adds that the drafting of a new SORP is “well underway” but it cannot be finalised until after the FRS102 amendments are issued. It will also be subject to a three-month consultation so until the FRS102 update is published, the SORP-making body is unsure when the new SORP will be published.
On top of this, we are facing long-term changes that are altering the way we live and work. For example, there is the ongoing evolution of technology, which seems to be becoming more rapid with developments such as AI.
Then there is the impact of the climate crisis. Again, we are seeing the effects of this at an ever-increasing rate. Hopefully, this will fuel the will to act urgently on a global level.
Whatever happens, charities need to know that change – be it fast or slow – is constant.
Tristan Blythe is editor of Charity Finance
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