How to read a charity’s accounts in ten minutes

Before you give to a charity, it helps to read its accounts. You do not need to be an accountant. Four numbers tell you most of what you need to know, and they sit on a single page called the income and expenditure account.

We will use our own accounts for the year ended 31 March 2025 as the example, because they are the ones we can vouch for. You can read them in full on the Transparency page of this website.

Number one: total income

Start with how much money came in and from where. For HNP the total was two lakh rupees: 1,30,000 from donation receipts, 50,000 from member contributions and 20,000 from other income. A charity that depends on a single donor is fragile. A charity that depends on many people is steadier.

Number two: spending on activities

This is the money spent on the work itself: food, clothes, books, camps and events. In our case it was 1,24,200 rupees, about 62 percent of the year’s spending. When you read another charity’s accounts, look for this line and for what share of the total it is.

Number three: running costs

Every charity has some costs to keep going, such as printing, communication and travel. Ours were 65,960 rupees, about 33 percent. There is no perfect ratio, but a charity that hides this line should make you ask questions.

Number four: the audit

Look for the name of the auditor, the date of the signature and a document number. A signed audit report means that a chartered accountant has examined the books. Ours was signed on 17 April 2025 by Jain Nitesh and Associates.

Questions to ask any charity

• Who audits your accounts, and can I see the report?
• How much of what you receive goes to the programs?
• Do you show photographs or records of the work?
• Can I visit and watch the work for myself?
• Do you answer when I call?

A charity that welcomes these questions is a charity worth supporting. If you would like to ask us any of them, the number is on the Contact page.