Gross income is used to determine reporting and scrutiny requirements in accordance with charity law. Annual gross income differs from total incoming resources / total receipts in a charity’s accounts.

For accounts prepared on a receipts and payments basis gross income is simply the total receipts recorded excluding the receipt of any endowment loans and proceeds from sale of investments or fixed assets.

For accounts prepared on an accruals basis the charity's gross income should be calculated as:

• the total incoming resources as shown in the Statement of Financial Activities (SoFA) (prepared in accordance with the SORP) for all funds but excluding the receipt of endowment
• including any amount transferred to income funds during the year from endowment funds in order to be available for expenditure

See also:

• Annual Return forms and guidance
• Charity reporting and accounting: the essentials (CC15b)
• Receipts and payments accounts pack (CC16)
• Accruals accounts pack (CC17)

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