The updated Charity SORP will apply to accounting periods beginning on or after 1 January 2026. It brings changes for charities right across the sector.

Feedback from our recent Charity SORP webinar suggests most organisations know the changes matter, but few have got far with preparing for them.

For trustees, understanding the areas causing the most concern helps set priorities and avoid a last-minute scramble.

What are charities most concerned about?

Capacity, resources and time

Many charities work with lean teams and limited resources.

New reporting requirements will add pressure on finance teams and on the wider organisation.

Technical interpretation

Some areas of the new SORP call for significant judgement and interpretation. These include:

• Income recognition
• Lease accounting
• Narrative reporting requirements.

Many charities expect they will need extra support to work out how the new requirements apply in practice.

Trustee and stakeholder engagement

Implementation isn't just a job for the finance team. Trustees, senior leadership, funders and lenders will all need to understand how the changes affect reported results, governance, compliance and decision-making.

Other concerns raised included the need for systems changes and the availability of final guidance.

Which changes are expected to have the biggest impact?

Asked which parts of the new SORP would affect them most, respondents pointed to:

• Income recognition from exchange transactions (note that non-exchange income is largely unaffected)
• Leases
• Narrative reporting, including impact reporting, sustainability reporting and volunteer contributions.

A smaller number didn't expect the changes to affect them much. But even where the impact looks limited, it's worth assessing it early.

How to prepare for the new Charity SORP

One of the clearest messages from the survey was that many charities haven’t yet started detailed implementation planning.

Some are doing initial scoping, others haven't begun any formal assessment, and only a minority have moved into detailed planning.

That's a risk. Charities that leave it late could end up managing complex changes alongside a busy year end or an external audit.

The implementation date may feel a way off, but there are things trustees can do now:

1. Carry out an initial impact assessment

Identify which parts of the new SORP are likely to affect your charity. Consider areas such as:

• Income recognition
• Lease arrangements
• Narrative reporting
• Sustainability disclosures
• Enhanced environmental, social and governance (ESG) reporting, mandatory for Tier 3 charities and encouraged for others
• Volunteer contribution reporting, which has been strengthened significantly for Tier 1 charities.

2. Assess systems and processes

Check whether your current systems can capture the information the new framework requires. Where you'll need extra data, work out what has to change and how long that will take.

3. Develop an implementation plan

Establish clear responsibilities, timelines and governance arrangements. You may need input from finance, operations, fundraising, HR and other teams across the organisation.

4. Engage trustees early

Trustees should understand the implications of the changes before implementation begins. Training sessions and briefing papers help boards give effective oversight through the transition.

5. Seek support where required

Specialist advice helps with the areas that involve significant technical judgement and reduces implementation risk.

6. Start planning now

The impact of the new SORP will vary from charity to charity. Some will see only limited change, while others will need to review significant parts of their reporting framework.

Either way, assessing and planning early makes for a smoother transition and less pressure closer to the deadline.

Our specialist charities team supports organisations of all sizes with SORP readiness reviews, trustee training, lease reporting support and implementation planning. To discuss how the new requirements affect your charity, please contact your usual RSM adviser, Hannah Catchpool, Kerry Gallagher, or another member of our charities team.

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