The revised Charities SORP, which now applies to accounting periods starting on or after 1 January 2026, represents a shift in expectations. It is not simply about compliance, but about improving the quality, clarity and usefulness of charity reporting.
The updated SORP, aligned with FRS 102, reflects a broader trend across the sector. Regulators, funders and the public are increasingly interested not just in what charities spend, but how and why decisions are made. Reporting is expected to provide insight, not just information.
It would be easy to treat the changes as technical. In practice, they are much more significant. The emphasis on narrative reporting, governance and transparency requires organisations to think differently about how they present themselves.
For trustees, this raises the bar. Oversight is no longer enough. Trustees must actively engage with the reporting process, ensuring that it provides a fair, balanced and understandable account of the organisation’s activities.
This includes clearly explaining strategy, articulating risks and demonstrating how decisions align with the charity’s objectives. Importantly, the narrative must align with the financial statements. Inconsistencies between the two are increasingly difficult to justify.
Finance teams also face new challenges. While they remain responsible for the technical accuracy of reporting, much of the information required sits outside the finance function. Impact data, operational insights and governance information all need to be captured and integrated.
This creates a need for greater collaboration across organisations. Reporting can no longer be produced in isolation at year end. It must be supported by systems and processes that operate throughout the year.
The concept of proportionality remains important. The SORP recognises that charities vary significantly in size and complexity. However, proportionality should not be interpreted as minimalism. Even smaller organisations are expected to produce clear, meaningful and well-structured reports.
In many ways, the revised SORP is an opportunity. Charities that approach it proactively can improve not only compliance, but also communication with stakeholders. Strong reporting can build trust, support funding applications and demonstrate impact more effectively.
Key takeaways:
- The SORP reflects rising expectations around transparency
- Trustees must engage actively with reporting
- Cross-organisational collaboration is essential
- Early preparation will ease implementation