Part 2 - Written question (50 marks) You are the new Finance Director for the Food Trust (FT), a charity whose work is focused on delivering food support to urban communities. When reviewing the reports and accounts for the first time you see that there are three main streams of charitable activity: receiving food donations in, distributing these, and advocating on behalf of those on the poverty line. Income mainly comes from general donations (community fundraising and associated gift aid), some general fundraising (appeals and legacies) and corporate sponsors. Money is often given for specific regional areas, but surprisingly gifts in kind (aside from free food gifted to the Trust for distribution) is modest. The charity is a company limited by guarantee, and is registered with the charity commission. The Treasurer has asked you to write a report for the Board, focusing on two areas: 1. How to account for the main areas of income and expenditure, including an idea of accounting policies and what to disclose in the notes to the accounts 2. The main tax considerations for the charity In addition, the Board has two new ideas they want your guidance on: a. Asking for some basic donation or payment from current recipients of free food - the amount of money will be small, but will enable more people to be reached in future. b. Setting up a travelling 'soup kitchen', which will reach remote rural communities; all of the food will need to be purchased beforehand, and then some of the food will be gifted and some sold. Write a report for the Board on these areas. Part 2 - Written question (50 marks) You are the new Finance Director for the Food Trust (FT), a charity whose work is focused on delivering food support to urban communities. When reviewing the reports and accounts for the first time you see that there are three main streams of charitable activity: receiving food donations in, distributing these, and advocating on behalf of those on the poverty line. Income mainly comes from general donations (community fundraising and associated gift aid), some general fundraising (appeals and legacies) and corporate sponsors. Money is often given for specific regional areas, but surprisingly gifts in kind (aside from free food gifted to the Trust for distribution) is modest. The charity is a company limited by guarantee, and is registered with the charity commission. The Treasurer has asked you to write a report for the Board, focusing on two areas: 1. How to account for the main areas of income and expenditure, including an idea of accounting policies and what to disclose in the notes to the accounts 2. The main tax considerations for the charity In addition, the Board has two new ideas they want your guidance on: a. Asking for some basic donation or payment from current recipients of free food - the amount of money will be small, but will enable more people to be reached in future. b. Setting up a travelling 'soup kitchen', which will reach remote rural communities; all of the food will need to be purchased beforehand, and then some of the food will be gifted and some sold. Write a report for the Board on these areas
