This form of accounting matches income to expenditure at the time the transaction occurs rather than when payment is made or received.

Lists actions to be taken to develop or improve an organisation, project or performance

A way of measuring the added benefits of a project which highlights the changes brought about which would not have occurred if the project hadn’t taken place.

The value added by your activity. A chef ‘adds value’ to food by cooking it, which is why we are prepared to pay more for the cooked meal than the raw ingredients. The phrase has become fashionable in the voluntary sector, though it’s often used rather loosely to indicate that community sector organisations have a ‘distinctive’ or specialist contribution to make which sets them apart from public or private sector organisations.

Part of the Protecting Vulnerable Groups Scheme (PVG Scheme).  Required by organisations who work (paid or unpaid) with ‘Protected’ Adults.

Aims: the long-lasting goals of your group   Objectives: breakdown of how you will achieve those aims

The accounts prepared at the end of the financial year

An AGM is a meeting, held once a year, and open to all members of your community group to attend. It gives your members the opportunity to review the work of the group over the past year and to be part of the planning for the coming year, including reviewing finances, electing a new committee, reviewing and/or adopting the Annual Accounts, election of accountant/auditor/independent examiner and passing or putting forward of Resolutions or motions. 

Most voluntary groups and voluntary management committees produce an annual report and many have a legal obligation to do so under the Companies Act 1990. Commonly used to promote the organisation’s aims and activities and give feedback to members. Can also be used to attract potential funders and donors, recruit volunteers and advertise services to potential users and referring agencies.

Fixed assets are things like equipment or property that you would have to sell in order to get any money. Inexpensive bits of capital equipment (like staplers or waste-paper bins) aren’t usually counted as fixed assets. Current assets are money in the bank and any money owed to you.

The use of an asset to acquire or maintain income.  The term is used to describe a form of community-based development built around an asset that generates independent income.  Commonly the asset is a building and income could be generated from renting out space. Alternatively, the asset is a permanent financial endowment generating interest.

Audit – to examine, verify, or correct the financial accounts. Not all accounts are required to be audited – this will depend on your group’s legal structure, gross income, whether or not you are a registered charity and what is stated in your governing document (constitution).  The law makes a distinction between accounts that have been professionally ‘audited’ (by a professional auditor) and those that have been independently examined (by an independent examiner). Both Company and Charity law provide rules about when and how an audit must be conducted and what an auditor must do.

An auditor is not the person who ‘does the books’ – this is usually your group’s Treasurer. An audit is a thorough examination/verification of financial/accounting records and supporting documents by a professional (a registered auditor who by legal definition is a person/firm capable of conducting an audit under the provisions of section 25 of the Companies Act 1989, i.e. a member of one of the six Consultative Committee of Accountancy Bodies (CCAB) who has “registered” as an auditor).

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Any body, whether or not it is a charity, which has been set up for charitable, benevolent or philanthropic purposes.

The process of seeking money or promises of money for the benefit of benevolent bodies (and companies connected with them) or for general charitable, benevolent or philanthropic purposes.

The governing body of an organisation.  Can be anyone over the age of 16 years although certain people are disbarred from joining the governing body of a registered charity, a Company Ltd by Guarantee or a Community Interest Company.

Procedure for creating, capturing, maintaining, and disposing of financial data of an organisation, either by hand or on a computer.

A budget is a financial plan showing income (money coming in) and expenditure (money going out) for the year ahead

A written projection, often for 1-5 years, for a project or programme of work. Sometimes only related to income and expenditure, but often set within an organisation’s wider framework.

A wide range of support, techniques and initiatives which aim to build the capacity of individuals or organisations within communities to effectively contribute to the local community.

Capital costs are the costs of buying equipment, furnishings, premises or other items that cost substantial amounts and will last for several years. For example, costs incurred in purchasing computers, a minibus or new premises are all capital costs. All other costs are revenue costs.

Cash flow is the movement of cash (including bank deposits) in and out of an organisation.  Can give a measure of the health of an organisation during a specified period of time.

Person who is in overall charge of a meeting, committee or board.

Legal status of a non-profit organisation registered with the Office of the Scottish Charity Regulator (OSCR).

Type of accounting required by charity’s that meet with the  Scottish charity accounting regulations.

Based on the Children Act 1989, with the guidance for Scotland being based on the Children (Scotland) Act 1995.  Organisations working with children are legally obliged to adhere to the regulations set out in this act.

Written set of guidelines which outlines the principles and expectations of how an organisation expects its staff, volunteers, members and users to act.

Group of people elected or appointed to perform a specific function e.g. governance committee; research and development committee; finance committee.

Survey of local issues, need and opinion on a particular issue.

Buildings for use by community groups, and run by not-for-profit organisations.

The development of communal activity to improve quality of life in a particular geographical area.

A non-profit organisations or associations of people, working together on common interests to provide services and benefits to the community.

A type of company that benefits the community rather than the owners, managers or employees.

Community Plans are usually developed by Community Planning Partnerships.  They build on a vision for the future of the area and how the public agencies will work in partnership to achieve the vision. 

A process through which local authorities come together with third sector and private sector organisations to identify needs, plan for and provide services and resources and promote the future wellbeing of the area. 

A summary of the past, present and anticipated future of an area.  Can be used to identify problems, impact of proposed action, and provide evidence to help develop an action plan, inform the development of a project, assist in allocation of resources, or support a proposal or funding bid etc.

 See Third Sector.

Transport provided by third sector organisations, using a combination of volunteers and paid staff.

“A written agreement which defines and manages the relationship between the Third Sector and one or more Public Sector bodies”.

Common legal structure for voluntary organisations that employ staff, own buildings or other tangible assets, or have substantial turnover.  Liability is limited, usually to £1.  Directors cannot benefit from profits, which must be reinvested into the company.

A group’s governing document which sets out the rules on how it operates including aims, purpose(s), powers and the framework within which it works. If a group becomes incorporated (as a Company Ltd by Guarantee or a Community Interest Company for example) their constitution is extended and referred to as the Memorandum & Articles.

A professional that can assist a project or organisation at specific times by providing expert or specialist advice.

Money in budget for unforeseen expenditure.

Written agreement between people or organisations that is enforceable by law.

An organisation’s central pot of money to cover running costs and overheads.

See Third Sector Interface

 A non-profit organisation included in the Scottish Charity Register.

In order to be entered in the Scottish Charity Register an organisation must pass the two part charity test which requires you to demonstrate your purposes are charitable and that your activities are providing public benefit.

An unincorporated legal structure with charitable status.  A charitable trust does not require membership participation, is not concerned about a lack of democratic accountability however trustees carry full liability.

A Company is an incorporated legal structure that is registered with Companies House.  They are required to file specific company information with Companies House, which is then available to the public. Companies have legal personality and are treated in law similar to that of a real person.

The Registrar of Companies in the UK responsible for incorporating and dissolving limited companies, examining and storing company information delivered under the Companies Act and related legislation, and making this information available to the public.

CRBS  manages the service of providing free disclosure records, guidance, advice and support to voluntary sector organisations working with children, young people and protected adults.

Data protection refers to rules and regulations around processing data on identifiable living people.  It is based on The Data Protection Act 1998

A governance structure for a group which ensures all eligible people have an equal say in the decisions that affect the group

Produced by Local Authorities, they set out policies and proposals for development and use of land in their area

If your group is looking at owning or running community assets, and aims to be engaged in the economic, environmental and social regeneration of a defined area or community, work in partnership with other groups and agencies and be self sufficient then you might be called a Development Trust. There is no set form of legal structure for a development trust. 

Elected or appointed member of the management committee of a Company Ltd by Guarantee or Community Interest Company, known as the board of directors

Includes physical, emotional cognitive, sensory, mental or developmental.  See Equality Act 2010.

Available under the 1997 Police Act for positions that require a disclosure out with the scope of the Protection of Vulnerable Groups (PVG) scheme.  See Scheme Record for people working with children, young people and protected adults.

The Equality Act 2010 defines and prohibits various types of discrimination including direct, indirect, by association and perception, or arising from disability.

The safe and legal removal from the Companies House register. The all inclusive professional service includes all striking-off fees and the necessary resolutions and others documentation necessary for the orderly dissolving of the company.

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The Equality Act 2010 defines nine protected characteristics.   The Equal Opportunities process ensure under-represented groups are provided with fair and equal opportunities.  A legal requirement that prevents anyone from feeling they have not been treated fairly and ensure that staff and/or volunteers are aware of their legal duties and responsibilities.

Assessment of a project or programme to identify the extent to which objectives have been achieved, how efficiently they have been achieved, and whether there are any lessons to be gained for the future.

An outline of how you will leave the project or business after your objective has been completed.

Charities must have their accounts externally scrutinized, either by Independent Examination or Audit.

A meeting of the whole membership of the group, called at short notice to discuss an urgent matter.

The right for employees to take leave for various family related reasons. Some is paid and some is unpaid.

Undertaken before any technical development or implementation of a project.  It will show the strengths and weaknesses of any existing or proposed projects, and will include opportunities and threats presented by the environment and any resources needed to carry out the project to completion.  Normally feasibility is judged on cost and value.

Drawn up by HM Revenue and Customs (HMRC) for charities that trade or have a trading arm, to ensure that those dealing with tax matters are fit and proper.

Parents of children under 17 (18 if the child is disabled) and carers of adults are legally entitled to make a request for their employer to consider flexible working options. The law requires that an employer follows a particular process to consider flexible working requests.

A small group of people brought together to focus on a particular issue. They encourage discussion, reflection and the exchange of ideas and opinions.

Covered by the Food Safety Act 1990.  Covers regulations on registration of food premises, temperature control, general food hygiene and offences relating to the sale or keeping for sale of food and powers of inspection held by Environmental Health Officers.

Freedom of Information (FOI) legislation states that data subjects have the right to request access to personal data you might hold on file about them.  It can also be a valuable resource for the voluntary sector.

An old style of legal structure. Originally, a Friendly Society was a benevolent unincorporated society set up to offer its members mutual relief and benefit (usually in respect of alleviating hardship associated with sickness, unemployment or old age).  These old style Friendly Societies are most often associated with offering pensions, loans or insurance services. Existing Friendly Societies are regulated by the Financial Services Authority (FSA). They do not register any new Friendly Societies.

The term ‘full cost recovery’ means securing funding for – or ‘recovering’ – all your organisation’s costs, including the direct costs of your projects and all your overheads. The full costs of your project are all the costs directly relating to the project including the project’s share of the overheads.

A government scheme which enables charities and community amateur sports clubs (CASC’s) to reclaim tax on donations of money made by UK taxpayers.

Refers to the overall guidance, direction and supervision of the organisation – making sure that it acts in line with its constitution and legal identity. In the voluntary sector it is most often used in connection with the role of committees or boards.

Money given to an organisation that does not need to be repaid.

A legal structure.  Set up and managed by trustees  with specified beneficiaries ( i.e. people) who receive money in the form of grants from the trust.

Minimum standards for dealing with discipline, dismissals and grievances as set out in ACAS’ Code of Practice on disciplinary and grievance procedures.

Offensive behavior as defined by the Equality Act 2010.

Processes and procedures in place to protect people against risks to health or safety arising out of work/activities.

Statutory annual leave which can include public and bank holidays.  Part-time workers entitlement is calculated on a pro-rata basis. 

Broader or longer-term effects (intended, unintended, positive and negative) of a project or organisation’s outputs, outcomes and activities. Impact is less tangible and therefore harder to measure than inputs and outputs.

First meeting of a newly formed group, often this is the meeting at which the group will be constituted. 

The name for an organisation that has a legal structure.

See External Scrutiny.

Specific data that can be measured to determine whether an activity, project or organisation has met a particular outcome.

Enterprises owned by the people working in them, and run on a democratic basis with members sharing all the control and all the profits equally.

The resources that contribute to a programme or activity including income, staff, volunteers and equipment.

A strategic and operational structure connecting and promoting common interests of agencies/bodies/partnerships working together. For example, Community Planning Partnerships, Volunteer Centres, Councils for Voluntary Service and Local Social Economy Partnerships are currently working towards establishing a single interface for the third sector by 2011.

A written description of duties and responsibilities used in the recruitment of paid staff and volunteers.

The legal definition of your organisations.  There are various types of legal structures available to third sector organisations. 

A structured focus on addressing geographically defined interests and requirements.

Money given on the condition that other funds (of equal or greater amount) are raised to make up the overall project total.   Match funding can be your group’s own funds, other grants or earned income.  It can also take into account funding ‘in kind’ such as volunteers’ time.

Forms of communication that reach and influence people including T.V, radio, newspapers, magazines etc.

The governing document of an incorporated organisation (company) which sets out the rules on how it operates including aims, purposes, powers and the framework within which it works.  For unincorporated organisations the governing document takes the form of a constitution which is shorter.

Stages into which projects are divided in order to monitor and evaluate progress.

The record of the proceedings of a meeting.  Includes a note on decisions made by the group/committee. 

Ongoing supervision of activities and progress to ensure project is on schedule in meeting targets and objectives. Specific monitoring information is often required by funders.

A group of people authorised to make decisions on the management of an organisation.

A statement describing the purpose of a group; who it is and why it exists.

Can help identify community assets and determine potential concerns. The results can be used to build an agenda for change, develop a project to meet needs or to build capacity within the community.  See community consultation.

Describes an organisation that has been established to reinvest any financial surpluses back into achieving the objectives of the organisation. Often used when referring to the voluntary or community sector.

End to be achieved, can be broken into goals.

Office of the Scottish Charity Register (OSCR).  Monitors charities on the Scottish charity register.

Outcomes are all the things that happen because of the project’s or organisation’s services, facilities or products – the changes, benefits, learning or other effects that result from what the project or organisation makes, offers or provides. When people use a project or organisation, they expect it will make some kind of difference to them. Outcomes are all the changes that actually occur when you carry out activities to achieve the aims. They may not be the same as the outcomes you originally planned.

Products, services or facilities that result from an organisation’s or project’s activities. Outputs can include services you offer, products you sell or give away (for example, booklets), and facilities you provide. They are what you “put out” as a result of your activity. The people you help use these outputs to achieve changes they want to achieve for themselves. Your outputs should relate to your objectives.

All organisations, from all sectors, have central or core costs which are their overheads. These include:-  financial and management costs; research & development costs; rental of premises etc.

The procedures within an organisation to take action in response to performance.  Often used to evaluate success of a project. 

Defined in the Data Protection Act as “data which relates to a living individual who can be identified from those data; or from those data and other information which is in the possession of, or is likely to come into the possession of, the data controller and includes any expression of opinion about the individual and any indication of the intentions of the data controller or any other person in respect of the individual”.

Skills and attributes a person needs in order to carry out a task.

A public relations (PR) statement given to the media to inform the public of events or developments in your organisation.

Commercial business set up for the financial benefit of its owners.

Procurement is the whole process of buying goods and services, from initial advertising through to appropriate contracting arrangements.

See Community Profile.

A piece of work with time and resource limits, working towards pre-defined aims and objectives.

Good project management translates business plans into reality bringing them in on budget and on time, and within allocated resources.

A project plan describes the different elements of the project, including its purpose, goals and objectives, and the cost of putting them into practice.

Method of promoting your organisation to user groups.

Public liability is based on the law of tort, and focuses on civil wrongs.  The degree of public liability varies depending on individual circumstance.

Made of up Government agencies e.g. Local Authority, Police, NHS, Scottish Natural Heritage.  

Scheme set up to administer the Protection of Vulnerable Groups (PVG) Act introduced in 2011, which introduced Scheme Records for individuals working with Vulnerable Groups, replacing them with PVG Scheme Records. 

A system which provides you with a framework of pre-written standards and methods your group can use to strengthen and improve your organisation by working towards meeting them. It can be used to manage your work on a day to day basis and also to manage change.

Income and Expenditure accounts, commonly called receipts and payments by OSCR (Office of the Scottish Charity Regulator).  They are the simplest format for annual accounts.

The process of identifying and taking on volunteers or paid staff.

A catch-all term which refers broadly to physical, economic and social renewal of a community.

In respect of the Protection of Vulnerable Groups (PVG) Scheme, regulated work only applies to those who work with children and/or protected adults. The carrying out of the activity or the work must be part of the individual’s normal duties that is, something an individual does as part of their post on an ongoing basis.  Therefore some, but not all, activities with children or protected adults are excluded from being regulated work if the activity is occurring incidentally to working with individuals who are not children or protected adults. It is up to each organisation to decide whether or not an individual is doing regulated work as part of their normal duties.

Money that has to be spent in a certain way.

Costs incurred in the day-to-day running of an organisation and its projects. Can be overheads or direct project costs, and include items such as stationery, rent, heat and lighting, phone bills and materials.

Process of identifying hazards, reducing, evaluating, monitoring and recording of risks and precautions.  This is a legal requirement for some organisations.  See duty of care.

An assessment being carried out by OSCR, of charities on the Scottish Charity Register who were granted charitable status prior to the Charities and Trustee Investment (Scotland) Act 2005 and the establishment of OSCR, to check that they meet, and continue to meet the Charity Test.

Scheme Records replace Disclosure Certificates issued under the 1997 Police Act for individuals working with Vulnerable Groups.

A legal structure for charities registered in Scotland.  Trustees are protected from incurring personal liability.

A national performance framework focusing on how key targets will be achieved.  The Scottish Government has set out national outcomes covering areas such as education, services for the young and older people, health and community safety.  Each local authority area of Scotland has agreed to draw up a SOA setting out how they will contribute to achieving these.

A way of assessing and demonstrating social, economic, environmental and political impact and limitations.  It can be carried out at any level and will enable you to gauge the social capital in your community and the impact you are having on your target population.  Can provide information to assist in the further development of a project and will help establish whether your project is meeting its objectives and fulfilling the needs of the community and can provide evidence of return on investment.

The social economy spans economic activity in the community (voluntary sector) and includes social enterprise. The social economy usually develops because of a need to find new and innovative solutions to issues (whether they be socially, economically or environmentally based) and to satisfy the needs of members and users which have been ignored or inadequately fulfilled by the private or public sectors. By using solutions to achieve not-for-profit aims, the social economy has a distinct and valuable role to play in helping create a strong, sustainable, prosperous and inclusive society.

The term social enterprise can refer to a type of activity or to an organisation practising that activity. They are commonly set up to meet a social need rather than for the benefit of shareholders, or to generate income for a not-for-profit organisation to help them be more sustainable.

A type of social enterprise, it is a business set up specifically to create employment for disadvantaged people.

Forms of media that enable social interaction.

In the third sector this can refer to paid or unpaid staff (i.e. volunteers).

An individual or organisation that has an active interest (a stake) in a particular organisation or issue.  For example, funders, members, contractors, purchasers trustees, beneficiaries, volunteers and paid staff are all stakeholders in a voluntary organisation. 

Stakeholders that give guidance on strategic direction of organisation.  Often the initial group of people involved in setting up a voluntary organisation.

Set up to develop and/or manage a specific project or activity rather than allow the new project to occupy the time of the full committee. The parent committee is ultimately responsible for the work the subcommittee does, and therefore the full committee must agree with any important decisions it makes, or significant developments that occur.

Sustainable development is defined as promoting economic development in such a way as to protect and improve our environment, now and for future generations (Scottish Executive).

A method for assessing strengths, weaknesses, opportunities and threats.  Gives essential insight into critical issues that can affect your organisation or project. 

Tax exemptions and reliefs on income, gains and profits available to not for profit organisations that are recognised by HMRC. 

A defined level of achievement which a project or organisation sets itself to achieve in a specific period of time.

The community or voluntary sector i.e. not-for-profit organisations providing a wide variety of services and activities.

Each local authority in Scotland has a third sector interface, their role is to support voluntary organisations in their local area, promote and support volunteering; develop and support social enterprise; and connect the third sector to community planning.

Direct selling of goods and services or contracts to deliver services on behalf of a Public Sector body (usually the local authority or government). Useful way for a community group to generate income.

General duties of Trustees defined under the Charities & Trustee Investment (Scotland ) Act 2005.

Offers trustees some cover for damages and legal expenses for which they are legally liable for as a result of a “wrongful act”.

A legal structure.  Set up and managed by trustees  with specified beneficiaries ( i.e. people) who are to receive benefits from trust.

A simple legal structure commonly used by small voluntary organisations. It offers a democratic structure with flexible procedures, however has no legal identity of its own, which may mean that the individuals acting for the group bear unlimited personal liability.

Money given by a donor that is not restricted but that can be spent at the discretion of the management committee in furtherance of their objects.

Giving of time, effort and talent to meet a need or further a cause without payment. 

How an organisations sees itself in the future.

A formal note of your organisation’s procedures, forming the basis of your volunteer programme and underpinning all your operations that include or affect volunteers.

See Third Sector