Posted on 10th February 2010
The government has decided to review a change to accounting procedures for NHS charities following protests from the Charity Commission, among others. It had planned to implement an international accounting standard that may have required the consolidation of certain NHS charity donations into the group accounts of an NHS body.
The decision has been deferred for a year to allow time for a review of the implications.
The commission said the move could be viewed as tantamount to a form of 'nationalisation' of the gifts and donations of the public, and could lead to a decline in public trust towards NHS charities. It said, "Consolidation creates the risk that charitable assets could be perceived to be at the disposal of the public body for its own corporate use.
"We are pleased to have the opportunity to contribute to this important review which includes representatives from NHS charities and other stakeholders and to have the chance to co-operate in finding a solution which maintains public confidence in giving to NHS charities."
The commission believes that the consolidation of NHS charities into the accounts of a public body is inconsistent with charities' independence.
NHS charities receive charitable income in excess of £330m and control charitable assets in excess of £2bn. They range from Great Ormond Street, which has a substantial income, to Ravensbourne NHS Charitable Trust Fund, with an income of £3,000.
The Charity Commission has published a Parliamentary briefing on this issue.
