What reports do trustees need to see each quarter?

Trustees are legally responsible for the oversight, governance and financial stewardship of a charity. To carry out these duties properly they need clear and regular information, and one of the most effective ways to do this is through structured quarterly reporting. In my opinion many charities fail to provide trustees with the right reports each quarter, which leads to poor decision making, unnecessary risk and a lack of strategic direction.

Quarterly reports give trustees a real time view of how well the charity is performing, how its money is being used and whether the charity is meeting its objectives. This guide explains what reports trustees should receive every quarter, why they matter, what information each report should contain and how trustees can use them to strengthen financial control and long term planning.

Why quarterly reporting matters

Some trustees only look at the figures once a year when the annual accounts are prepared. In my experience this is far too late. By the time annual accounts are produced, mistakes have already happened, financial issues have already grown and opportunities to correct problems have passed.

Quarterly reports give trustees:

• Early warning signs of financial trouble

• A way to monitor income and spending trends

• Insight into the charity’s reserves and financial stability

• Confidence when applying for grants or funding

• Assurance that the charity is complying with legal duties

• A foundation for strategic planning

In my opinion quarterly reporting is essential for good governance and helps trustees make informed, responsible decisions.

The essential quarterly reports trustees need

Below are the reports trustees should receive every quarter. In my view these form the minimum standard for responsible charity governance.

1. Quarterly management accounts

Management accounts are the backbone of trustee reporting. They provide a clear picture of the charity’s financial activity for the quarter and year to date.

What they should include

• A statement of financial activities (income and expenditure)

• A balance sheet

• Comparison of actual performance against budget

• Variance explanations

• Year to date totals

• Forecasts for the rest of the financial year

Why trustees need it

Management accounts show whether income targets are being met and whether spending is under control. They also highlight unusual transactions, emerging risks or areas that need attention.

In my opinion

Even small charities should produce quarterly management accounts. They do not have to be complicated, but they must be accurate.

2. Cash flow report

Cash flow is one of the biggest risks for charities, especially those relying on grants, fundraising or seasonal income. A cash flow report shows money coming in and money going out over the quarter, highlighting any periods of strain.

What a quarterly cash flow report should show

• Opening bank balance

• Cash received

• Cash spent

• Closing balance

• Future cash forecast

• Major payments due in the next quarter

Why trustees need it

A charity can appear healthy on paper but still run out of cash. Trustees must know whether the organisation has enough cash to meet upcoming commitments.

My view

Cash flow is often the first sign of trouble. I believe trustees should monitor it closely.

3. Budget versus actual performance

Every charity should have an annual budget. Quarterly comparison allows trustees to see whether the charity’s financial activity is on track.

What should be included

• Budgeted income and expenditure

• Actual income and expenditure

• Variances for each category

• Explanations for large differences

• Updated forecasts

Why trustees need it

Budgets are forward planning tools. Deviations help trustees make decisions about spending, fundraising and resource allocation.

In my opinion

Unexplained variances are a red flag and trustees should always ask questions.

4. Reserves report

Charities must keep adequate reserves to manage risk and maintain stability. A quarterly reserves report shows how much unrestricted money the charity has available.

What the report should include

• Total reserves

• Restricted versus unrestricted funds

• Minimum reserves policy

• Current reserves position

• Risks to future reserves

Why trustees need it

Low reserves reduce resilience. Excessive reserves may raise questions from funders. Trustees must ensure reserves are appropriate and used responsibly.

My view

Reserves are a vital indicator of long term health. Trustees have a duty to monitor them regularly.

5. Fundraising performance report

If a charity relies on fundraising, trustees should review progress each quarter to ensure targets are realistic and activity is effective.

What it should include

• Income by fundraising type

• Event performance

• Online giving results

• Donor retention

• Costs of fundraising activities

• ROI (return on investment)

Why trustees need it

Fundraising can be unpredictable. Trustees need clear oversight to make sure activities are efficient and compliant.

In my opinion

Fundraising reports should be honest and not overly optimistic. Transparency helps planning.

6. Grant income and compliance report

Many charities rely on grant funding. Trustees must understand the status of each grant and ensure conditions are met.

The report should show

• Grants received

• Grants pending

• Reporting deadlines

• Conditions attached to funding

• Spending against restricted funds

• Risks of clawback

Why trustees need it

Grant providers can reclaim money if conditions are not met. Trustees must ensure restrictions are followed and reports are submitted on time.

My view

Restricted funds are widely misunderstood. Quarterly reporting prevents accidental misuse.

7. Risk register review

Every charity should maintain a risk register. Reviewing it quarterly ensures risks are monitored and mitigation actions are in place.

What the risk register should contain

• Financial risks

• Operational risks

• Safeguarding risks

• Governance risks

• Reputational risks

• Assessment of likelihood and impact

• Actions taken to reduce risks

Why trustees need it

Trustees are legally required to identify and manage risks. A risk register supports sound governance.

In my opinion

Ignoring risk is one of the biggest mistakes trustees make. Reviewing risks quarterly keeps risks visible rather than forgotten.

8. Safeguarding and compliance report

Charities working with children or vulnerable adults must provide trustees with safeguarding updates every quarter.

What should be included

• Any safeguarding incidents

• Training completed by staff or volunteers

• Policy updates

• Referrals or concerns raised

• Action plans

• Any compliance breaches

Why trustees need it

Safeguarding is a legal and moral duty. Trustees must have oversight and assurance that processes are followed.

My view

Safeguarding should always be a standing agenda item. It is too important to overlook.

9. Operational and performance report

Trustees also need to monitor progress against the charity’s strategic and operational goals.

What this report covers

• Delivery of services

• Outputs and outcomes

• Project progress

• Beneficiary statistics

• Key achievements

• Challenges faced

Why trustees need it

This report helps trustees understand whether the charity is fulfilling its mission effectively.

In my opinion

Charities often focus too heavily on finances when operational delivery matters just as much.

10. Governance and policy update

Governance is more than paperwork. Trustees need to know which policies need updating or reviewing.

Should include

• Policy renewal dates

• Mandatory training updates

• Trustee recruitment or resignations

• Conflicts of interest

• Any governance concerns

Why trustees need it

Good governance underpins the charity’s credibility and compliance.

11. HR and staffing report (if applicable)

Charities with employees should review HR matters quarterly.

Should include

• Staff changes

• Sickness levels

• Appraisals and training

• Performance issues

• Volunteer activity

Why trustees need it

People are often the charity’s biggest asset and biggest expense.

12. Health and safety report

Essential for charities working onsite, providing services or running events.

Should include

• Incidents or near misses

• Site inspections

• Compliance with health and safety law

• Risk assessments

• Training carried out

Why trustees need it

Trustees have legal duties to ensure safety in the workplace and during activities.

How trustees should use quarterly reports

Ask questions

Trustees should challenge unusual figures, unexplained variances, poor performance or unclear information.

Compare trends

Quarterly reports allow comparison with previous quarters to spot patterns.

Make informed decisions

Financial and operational data supports decisions on budgeting, staffing and strategy.

Ensure accountability

Trustees are collectively responsible for oversight. Reports help fulfil that duty.

Plan ahead

Quarterly data feeds into future planning, not just historical reporting.

In my opinion trustees should never feel embarrassed to ask basic questions. Responsible oversight depends on curiosity and clarity.

Common problems when trustees do not receive the right reports

I have seen many charities experience difficulties such as:

• Cash flow crises

• Poor budgeting

• Misuse of restricted funds

• Compliance failures

• Loss of grant funding

• Safeguarding gaps

• Governance breakdown

• Trustee disputes

Almost every issue can be traced back to poor reporting or lack of oversight.

What small charities should do if quarterly reporting feels overwhelming

Not every charity has a finance team. If you are a small group, I recommend:

• Using simple accounting software

• Preparing lightweight quarterly reports

• Focusing on key financial and operational information

• Asking volunteers or trustees with financial experience to help

• Seeking occasional professional support

Quarterly reporting does not have to be complicated. It has to be consistent and accurate.

In my opinion: the core four reports every charity must have

If you can only produce four quarterly reports, I would choose:

1. Management accounts

2. Cash flow forecast

3. Budget versus actual

4. Risk register update

These provide a strong foundation for responsible governance.

Final thoughts

Trustees are legally and morally responsible for ensuring a charity is well managed. Quarterly reporting is one of the simplest and most reliable ways to maintain oversight, prevent risk and support good decision making.

In my opinion every charity, regardless of size, should provide trustees with a structured set of quarterly reports focused on finances, operations, risk and governance. When trustees have the right information at the right time, the charity runs more smoothly, stays compliant and delivers greater impact for its beneficiaries.