SORP 2026: Preparing for a new era of charity reporting

A review of the trustees' report changes

Following on from Price Bailey’s successful in-person seminars, we are breaking down the key areas into webinars for our clients to fully prepare for the changes. The first of these is on the trustees’ report.

The introduction of SORP 2026 represents the most significant refresh of charity reporting requirements in over a decade. With the previous SORP dating back to 2015 (with limited updates since), many trustees and finance teams will be adapting to unfamiliar expectations, new terminology and a revised reporting framework.

While there are notable accounting changes elsewhere in the SORP, some of the most far‑reaching developments affect the trustees’ annual report. The revised SORP places greater emphasis on explanation, clarity and transparency – expecting trustees to tell a coherent and meaningful story about their charity’s purpose, performance and future direction.

Our upcoming webinar – hosted by charity specialist partner Michael Cooper-Davis – will focus on these trustees’ report changes, helping charities understand what is required, what has changed, and how to prepare in a proportionate and practical way.

A more structured and proportionate approach

One of the headline changes under SORP 2026 is the introduction of three reporting tiers, designed to align reporting requirements more closely with a charity’s size and complexity.

While this should reduce burden for smaller charities, it also introduces enhanced reporting expectations for larger organisations, particularly around narrative depth and explanation.

Importantly, the SORP now sets out more clearly which disclosures trustees must include, which they should consider as good practice, and which they may include optionally. This greater clarity brings benefits, but also reduces scope for generic or boiler‑plate reporting.

What the SORP expects from a “good” trustees’ report

The revised SORP is explicit in its expectations. A strong trustees’ annual report should:

explain what the charity exists to do;
describe how it delivers its charitable purposes;
link activities to income and expenditure; and
help users understand what has been achieved during the year and why it matters.

The trustees’ report is now clearly positioned as an essential companion to the financial statements, providing the narrative context required to interpret the numbers. Read alongside the accounts, it should give stakeholders a clear picture of the charity’s outputs, outcomes and wider impact.

Impact reporting – a central theme of the new SORP

While the webinar will cover all key trustees’ report changes, impact reporting deserves particular attention.

Under SORP 2026, all charities must include a summary of their main achievements and explain how their work has made a difference to beneficiaries.

For Tier 2 and Tier 3 charities, the requirements go further, with enhanced expectations around explaining outcomes, longer‑term impact and performance against objectives.

This represents a shift away from reporting activity alone. Trustees are now expected to articulate not just what the charity has done, but how effective that work has been and what difference it has made.

For many charities, this will require earlier planning, clearer performance measures and closer alignment between strategy, operations and reporting.

While tools such as infographics, statistics and beneficiary stories are encouraged rather than mandated, the underlying expectation is unavoidable: impact must be explained clearly and credibly.

Other key trustees’ report changes to be aware of

SORP 2026 also strengthens requirements in several other important areas, including:

Volunteers

All charities must explain the scale and nature of volunteer involvement and how volunteers contribute to delivering charitable activities.

Reserves policy

Generic statements are no longer sufficient; trustees must explain why reserves are held, how much is held, and how this links to future plans.

Risk reporting

More comprehensive descriptions of principal risks are required, including emerging financial, operational and environmental risks.

Future plans

Trustees must clearly articulate what the charity plans to do next, how experience and learning have informed those plans, and how resources will be allocated.

Why preparation matters

The new SORP applies to periods beginning on or after 1 January 2026, meaning many charities will need comparative information and supporting narrative sooner than expected. Areas such as impact reporting, volunteer data and reserves analysis cannot be assembled at the last minute.

Trustees who engage early will be better placed not only to comply with the new requirements, but to use the trustees’ report as an effective tool for accountability, communication and trust‑building.

Join our webinar

Our webinar will guide trustees and management through the key trustees’ annual report changes under SORP 2026, highlighting practical implications, common challenges and steps charities should be taking now to prepare.

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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