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Charity technical briefings

Accounting considerations related to the Coronavirus 2019 (COVID-19) pandemic

The coronavirus 2019 (COVID-19) pandemic is affecting economic and financial markets, and virtually all industries are facing challenges associated with the economic conditions resulting from efforts to address it. For example, many charities have seen sharp declines in revenues due to the closure of retail outlets or from the cancellations and delays in fundraising events due to regulatory and organisational mandates (e.g. “shelter in place” mandates, school closures) and voluntary changes in consumer behaviour
(e.g. “social distancing”).

The continuation of these circumstances could result in an even broader economic downturn, which could have a prolonged negative impact on the country, both increasing the need for charitable operations and increasing the challenge of fundraising and delivery. This briefing highlights some of the financial accounting and control impacts that trustees will need to consider.

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