Last month, on the 10th of July, the Charities Amendment Act 2024 was passed into law. This legislation introduced significant changes to the charitable sector, affecting areas such as financial reporting and trustee responsibilities. To assist you in navigating these changes and ensuring compliance, we’ve outlined key modifications that could impact your clients.

1. New Charitable Purpose: The advancement of human rights is now recognised as a charitable purpose.
2. Trustee Responsibilities: Clarifications have been made regarding charity trustees' responsibilities, including new indemnity provisions for court-appointed trustees. If you’re on the board of any charities, it is worth a read.
3. Financial Reporting Simplification:

• Unincorporated Charities: With incomes or expenditures under €250,000 can submit an income and expenditure account plus a statement of assets and liabilities instead of full annual financial statements.
• Charitable Companies: Must adhere to the Companies Act for financial reporting as per ministerial regulations.

1. Updated Audit Threshold: Increased to €500,000, but practically we continue to apply the tax exemption thresholds remaining at €250,000.
2. Exemptions for Small Charities: Very small, unincorporated charities, meeting specific criteria like having an income or balance sheet below €10,000 or no employees, are exempt from detailed financial filings but must submit annual returns.
3. No Mandatory SORP: While SORP is still recommended best practice, it is not mandatory under the Act. The Act does give the Minister authority to make SORP mandatory in the future.

We understand that these changes may be complex. Our Practice Support team is available to provide guidance and assistance. If you require further clarification or wish to discuss how these changes might affect your clients, please don’t hesitate to contact us.

The contents of this article are meant as a guide only and are not a substitute for professional advice. The author/s accept no responsibility for any action taken, or refrained from, as a result of the material contained in this document. Specific advice should be obtained before acting or refraining from acting, in connection with the matters dealt with in this article.