In our 2020 Year in Review, we commented that COVID-19 restrictions would continue for some time into 2021 and “maybe even to Autumn” and that the sustainability challenges would remain. Our outlook was overly optimistic; with the threat from COVID-19, despite the amazing vaccination effort, continuing to weigh down on high street footfall which is critical to the general economy.
Anderson Anderson & Brown LLP (AAB) is one of the UK’s leading Chartered Accountants and Business Advisory Firms. Our specialist Charity Services Team of experts understands the needs of third sector organisations and has worked with many during this time of immense pressure for the sector. Our team is drawn from each of the service areas of AAB, such as audit, business advisory, payroll & employment taxes, corporation tax and indirect tax. Each member joined the charity services team because they are passionate about the impact of the work of charities do in our communities.
Many businesses have had to think on their feet in the past year as a result of COVID-19, but none more so than those in the charitable sector. The pandemic has provided new challenges, not only in providing core services to those in need but also in keeping on top of the day-to-day finances.
2020 has been a hugely difficult year for many, particularly in respect of concerns about health, wellbeing and financial security. The Office for National Statistics estimated in September that the UK economy was around 20% smaller than at the end of 2019, bringing unprecedented headwinds for the UK’s businesses. The pressures on Public Sector bodies and third sector organisations have varied; needs have been considerable, combined with “lockdown” making delivery challenging, whilst funding from usual sources has declined significantly.
The zero-rate relief for charity advertising has provided significant benefits for charities since its introduction for newspaper advertising in 1986. Over the years, there have been a number of changes to the relief which have generally extended the scope to cover broadcast media and all advertising, whether it be fundraising or recruitment adverts.