The new SORP applies to accounting periods starting on or after 1 January 2026. CFG surveyed 101 charities across all three reporting tiers to find out how ready they feel.
The results are encouraging in terms of their understanding of the new SORP. Nearly two-thirds (64%) said they were very or fairly confident that they understand the requirements. However, more than a third (36%) did not express confidence, including one in five (20%) who said they were not very or not at all confident.
Confidence is ahead of preparation
Only 4% of charities said they are fully prepared, and 30% said they are mostly prepared. Another 39% said they are partly prepared, with significant work still to do.
The survey also points to some gaps in preparation:
- 19% said they have not yet started preparing at all.
- Only 20% have identified changes needed to their systems, data collection or record keeping.
- Only 14% have agreed an implementation timetable.
- Just 22% have fully assessed the new lease accounting requirements, and 23% have not yet assessed them. For the new income recognition rules for exchange contracts, 16% have fully assessed them and 27% have not yet assessed them.
There are positive signs too, as more than half of respondents have a named member of staff responsible for implementation. Likewise, over 50% have discussed the changes with their auditor or independent examiner, and briefed their trustees or audit committee. Additionally, a large majority (83%) agreed that charities are responsible for implementing the SORP changes themselves, and that this can’t simply be left to their auditor or adviser.
When asked where they would like more support, respondents most often mentioned lease accounting (21%) and income recognition (15%), followed by the Trustees’ Annual Report (11%), though it is worth noting that the survey was conducted largely before the release of the Charity Commission's lease accounting helpsheet.
Richard Sagar, Head of Policy at CFG, said:
“It’s encouraging to see so many charities telling us they understand what the new SORP asks of them. But understanding the changes and being ready for them are two different things. Updating systems and collecting the right data takes time, and with the new requirements already applying to accounting periods starting this year, charities that haven’t begun yet should make a start now.
“We’d urge every charity to make use of the free resources in our SORP hub, including the Charity Commission’s helpsheets. We’re grateful to the Commission for producing such clear, practical guidance, and its recent helpsheet on lease accounting is a good example. We’ll also be running more in-depth SORP training sessions early next year, and we want these to be a regular part of our learning programme.”
CFG has been supporting charities with the SORP since the first exposure draft was published in early 2025, including through a series of free webinars on how the changes will affect charities.
Charities can find CFG’s guides, articles and resources from its expert corporate partners, alongside the Charity Commission’s helpsheets on our SORP resource hub.
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