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How should a charity account for its branches?
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The trustees must ascertain the legal status of their local
units: Any 'branch' that fulfils the requirements to
register as a separate charity (ie it is autonomous, has
income over ?1,000 or has a permanent endowment or the
exclusive use/occupation of land), must be separately
registered. As a separate charity, it would normally have
its own accounts and trustees' annual report (but see
uniting directions question). If the branch is not a
separate charity then its funds will be included with those
of the main charity as follows: Funds raised by a branch
for the general purposes of the main charity will be
accounted for as unrestricted funds. Funds raised by a
branch for specific purposes of the main charity (including
for use solely in the branch) will need to be accounted for
as restricted funds. This is a complex area.
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