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CFDG Good Practice Publications
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'Socially Responsible Investment: A Practical Guide for Charity Trustees'
Published June 2010
This publication, created in partnership with EIRIS, aims to assist the increasing number of trustees who are adopting or updating responsible investment strategies on behalf of their organisations. The guide provides practical advice and presents case studies of charities that have put these principles into their investment practices.
This document is available to 
download.
'Relocation: A Charity Finance Professional's Guide'
Published June 2010
Relocating premises provides many challenges for charities to negotiate. 'Relocation: A Charity Finance Professional's Guide' compiles several fascinating case studies written by finance professionals in the charity sector. The guide also acts as a practical reference resource, with essential legal and financial information regarding relocation, as well as useful checklists that can be printed off and utilised.
This document is available to download.
'The Tax Implications of Charity Trading'
Published April 2010
The Charity Finance Directors' Group has released a comprehensive guide called 'The Tax Implications of Charity Trading.' Written by Pesh Framjee, head of not-for-profit at Horwath Clark Whitehill, this guide is an essential resource for charities raising funds through trade, or looking to do so in the future.
This document is available to download.
International Financial Reporting Standards and Charities:
A Review of the Potential Impact of Recent Proposals
Published March 2010
Charity accounting and reporting is facing significant change as a result of new international standards, and a debate between other sectors on public benefit accounting. CFDG and BDO Stoy Hayward have published this review which sets out the main issues for finance directors and audit committees.
The document explains the important differences between IFRS for SMEs and:
• the Charity SORP
• the other SORPs covering housing and the HE/FE sectors
• UK GAAP and full IFRS.
It explains how the existing SORP’s requirements are likely to change either to comply with the IFRS for SMEs, or as a result of the three not-for-profit SORPs being under pressure to harmonise. It encourages charities to understand the implications for their own accounts, and be ready to influence the debate and to prepare their own systems. The document provides a summary of the issues of most significance. Each section sets out the differences between the IFRS for SMEs and current guidance, with a scoring of the significance.
This document is available to download.
Unlocking Socially Responsible Investment
Published March 2010
Unlocking Socially Responsible Investment seeks to support socially responsible investment (SRI) amongst charities by demonstrating the advantages, challenging perceived barriers and providing practical insights and guidance. We believe that SRI is a positive, forward-looking strategy for charity investment, and one that can reap significant mission-related, reputational and even financial benefits.
All members (who were members at the time of publication) will receive a free copy in the post.
Additional copies will be available to buy from CFDG for £15.
This document is available to download.
Sustainability in Practice
Published May 2009
Sustainability in Practice: monitoring and reporting is CFDG's best practice publication on environmental and social sustainability. It looks at how and why charities can act and report on their environmental and social sustainability.
At CFDG we believe this is becoming a key issue for charities, and we also believe tackling this issue strategically can significantly benefit charities. It can improve accountability, efficiency and core charitable work, as well as boosting office morale. Our publication aims to make this as easy as possible for charities by defining the main issues and giving frameworks and suggestions for both management plans and reporting.
Copies of the full report are available in hard copy only and are £15 (there is one free copy for every CFDG member who joined prior to publication) - please contact Elisha O'Dera. You can read the summary here.
Sustainability in Practice online (member login required)
The 2008 Charity Pension Maze
Published April 2008
This publication has been produced at a particularly pertinent time for charities as the pension world is going through some dramatic changes and there are specific challenges for the sector.
The 2008 Charity Pensions Maze, produced in association with Barclays, identifies pensions as a significant area of risk management for charities and reveals the need to act now to address pension scheme issues in order to meet the challenges created by a less stable economic environment and continuing regulatory change. This publication is an essential guide for any charity trustee, finance director or pension scheme trustee.
Copies of the full report are available in hard copy only and are £10 (there is one free copy for every CFDG member who joined prior to the publication date) - please contact Elisha O'Dera.
The Role of the Charity Finance Director
Published February 2008
The Charity Finance Directors' Group (CFDG) has launched a comprehensive guide on the role of the charity finance director. The book published to commemorate CFDG's 20th Anniversary examines the role of the charity finance director over the last 20 years.
Each chapter is written by a charity finance director with proven expertise and experience in the area in which they are writing. The book examines the five key themes of leadership, professionalism, relationships, learning and accountability and is an essential reference tool for anyone working in finance.
Copies of the full report are available in hard copy only and are £45 (there is one free copy for every CFDG member who joined prior to the publication date) - please contact Elisha O'Dera.
Know Your Cost Base Know Your Charity
Published April 2007
The Charity Finance Directors’ Group (CFDG) has launched a major new report entitled Know Your Cost Base Know Your Charity. The publication provides a robust framework within which charities can consider their costs and cost drivers as well as special considerations such as VAT, reserves policy, transfer of risk etc.
This CFDG report, in association with haysmacintyre, aims to raise awareness of the importance of understanding a charity’s cost base and its implications for both funding and broader financial management. A good understanding of a charity’s cost base is essential for sound financial management. The behaviour of a charity’s costs affects the budget, the annual accounts and particular project work, either to estimate for potential work or to report to funders. Chris Harris, Director of Finance and Resources at Action for Blind People and chair of the working group who developed this report said: “The charities sector is growing and becoming increasingly professional in many areas of activity. Those responsible for financial matters have to keep pace and make sure their charity stays successful and sustainable. This report is essential reading for those that want a briefing on the main points.”
CFDG has issued a Press Release announcing the publication of the report. Copies of the full report are available for £10 - please contact Elisha O'Dera.
A copy of the Introduction is available for free to download:
download (1.25MB)
The Charity Pensions Maze
Published June 2004
The Charity Finance Directors' Group (CFDG) has today released
a major report ‘The Charity Pensions Maze’. The report
examines the current state of pensions in the charity sector and
provides guidance to charities struggling to deal with the current
pensions crisis and find a way through the pensions maze.
Whilst the crisis in corporate pensions has been well documented, this report is the first of its kind specifically for charities. Charities have their own particular pensions issues, not least because of the need for sensitive use of donors’ money.
Sedgwick IFC, sponsors.
‘The Charity Pensions Maze’ recognises that there are no ‘quick fix’ solutions and that current problems are not going to miraculously disappear simply as a result of improvements in the stock market. The Report, sponsored by Sedgwick IFC, encourages charities to actively manage their pension liabilities and includes a number of case studies of the approaches taken by major charities including Barnardos and NSPCC.
CFDG has issued a Press Release announcing the publication of the report. Copies of the full report are available for £10 - please contact Elisha O'Dera.
A copy of the Executive Summary is available for free to download:
download (278KB)
Inputs Matter: Consultation Report - Free download
Published April 2004
The Charity Finance Directors’ Group have concluded the
first stage of their work on inputs into charity accounts. Many
constructive responses from CFDG members and the general public
were received during the consultation process to produce this
report. However, by far the most controversial proposal was that
a value for volunteer time should be included in the financial
statements of charities.
CFDG issued Inputs Matter: Improving the Quality of Reporting in the Charity Sector in November 2003. It contained a bold collection of proposals that we hoped would improve the quality and consistency of charity annual reports. CFDG is in close contact with the SORP review committee, which has considered the recommendations in the “Inputs Matter” report as part of its current review.
Pending publication of the SORP committee’s recommendations CFDG is seeking funding for the next stage of the project. Hopefully this will enable us to develop working examples, and examine how the recommendations can be applied in practice. The second stage of the project will particularly focus on how to develop practical systems for valuing volunteer time.
A full copy of the document is available for free to download:
download (30KB)
Inputs Matter: Improving the Quality of Reporting in the Charity Sector - Free download
Published November 2003
CFDG launched a bold collection of proposals for consultation
that they hope will improve the quality and consistency of charity
annual reports. In the report, Inputs Matter: Improving the Quality
of Reporting in the Charity Sector, CFDG sets out plans to tighten
the definitions used in charity accounting and create a more level
playing field between charities. Ultimately the goal of the project
is to allow the public to have more knowledge of how the money
they donate to charity is being spent.
The report contains a range of proposals in relation to Support, Management and Administration Costs, Fundraising Costs and the Valuing of Volunteers. These include:
· That consideration should be given to include a value
for volunteer time in the SOFA
· Management and administration costs should be called
‘governance’ costs or similar, with the term defined
to make it clear what sort of costs should be included, and sufficient
detail provided to explain all cost allocations
· Allocation policies relating to fundraising activity,
themselves based on clearer definitions as to what constitutes
fundraised income, should be determined in advance of the year-end
and be approved by the trustees before they are applied.
It is hoped these proposals will spark a debate on charity reporting. CFDG now want to find out what their members and other interested parties think of the proposals, and whether they will lead to more meaningful financial ratios. It is also anticipated that the Report will contribute to the next annual SORP review.
A full copy of the response is available to download:
download (363KB)
download (1.13MB)