The upcoming SORP 2026 changes are expected to place greater emphasis on transparency, governance, and financial accountability across the charity sector. As regulatory and stakeholder expectations continue to evolve, charities may need to rethink how they communicate both their finances, and their impact.
In particular, there will be increased scrutiny on narrative reporting. Trustees will be expected to provide clearer explanations around decision-making, risk management, reserves, and how funds are being used to deliver charitable objectives. It’s no longer enough to simply present the numbers – charity accounts will need to tell a coherent, credible story.
Smaller charities are also likely to feel the impact. Expectations around internal controls, financial oversight and documentation will continue to increase, making robust processes and accurate record-keeping essential to maintaining trust with funders, donors and the public.
While these changes may seem demanding, they also present an opportunity to strengthen governance and improve the quality of financial reporting across the sector.
Key areas to be aware of
Clearer, more connected storytelling
Reports will need to link objectives, activities and outcomes more clearly, helping stakeholders understand what has been achieved and the difference it has made.
Greater emphasis on how decisions are made
There is likely to be greater expectation to explain why key decisions have been taken, particularly around funding, reserves, and long-term strategy.
Increased focus on financial resilience
Charities will need to demonstrate how they are managing financial pressures, planning for uncertainty and maintaining stability over time.
Transparency around how funds are applied in practice
Reporting is expected to go beyond high-level figures, giving stakeholders a clearer view of how different income streams are used and prioritised.
Enhanced trustee oversight
Trustees will need to demonstrate more clearly how they are actively monitoring performance, identifying risks, and challenging decisions where appropriate.
Rising expectations for smaller charities
Proportionality will still apply, but reliance on informal processes is likely to reduce, with greater emphasis on documented governance and controls.
More accessible reporting
There will be a push towards accounts that are easier to understand, helping non-specialists see the impact of charitable activities.
Next steps
Although the final detail of SORP 2026 is still evolving, there are practical steps charities can take now to prepare, including:
- Review trustee reports to ensure they clearly explain activities, outcomes and key decisions
- Assess governance structures and oversight processes
- Strengthen internal controls and record keeping
- Revisit reserves policies and financial planning assumptions
Engaging early with advisers can help identify any potential gaps and support a smoother transition, allowing organisations to not only meet new requirements but also enhance the overall quality and clarity of their reporting.
How PM+M can help
We support charities in reviewing their reporting, strengthening governance, and preparing for SORP 2026. Our team can help you identify any gaps, enhance your processes, and ensure you’re ready for the increased focus on transparency and accountability.
Contact Dean Rodgers using the buttons below.
