The Charities SORP has always encouraged impact reporting as best practice, but it is now mandatory for tier 2 and tier 3 charities. Trustees must now explain the short- and long-term impacts of their charity’s work, both on individuals and wider society. For tier 1 charities, impact reporting still remains best practice and is highly encouraged.

While many charities already communicate their impact through fundraising campaigns, annual reviews and stakeholder communications, SORP 2026 emphasises the importance of formally reporting the difference that a charity's work makes.

For trustees, this presents both a challenge and an opportunity.

How does SORP 2026 require charities to describe their work?

Historically, many annual reports have focused on activities delivered and money spent.

However, under SORP 2026, tier 2 and 3 charities must go further and explain the outcomes and impact of their work.

This means moving beyond statements such as:

• We planted 500 trees.
• We delivered 10,000 meals.
• We supported 200 beneficiaries.

These figures remain important. However, stakeholders increasingly want to understand what changed as a result of those activities.

For example:

• How did tree planting improve the local environment or strengthen community engagement?
• How did meal deliveries reduce isolation or improve wellbeing?
• How did support services improve outcomes for beneficiaries and their families?

These are the stories that impact reporting seeks to tell.

Why impact reporting matters

The updated requirements reflect growing expectations around transparency and accountability.

Donors, funders, beneficiaries, regulators and the public all want to better understand how charities create positive change, and trustees have an important role to play in making sure their charity can evidence and communicate that impact effectively.

Strong impact reporting can:

• Strengthen the trust of stakeholders
• Support fundraising and grant applications
• Demonstrate accountability
• Highlight the value of the charity's work
• Bring the organisation's mission to life.

Done well, impact reporting becomes much more than a compliance exercise – it becomes a tool to strengthen support for the charity.

Impact isn't always shown by a number

Some forms of impact can be measured quantitatively. Others require a more qualitative approach.

For many charities, stories, case studies, feedback and testimonials provide valuable evidence of the difference their work makes.

The benefits felt by a young person gaining confidence, a family receiving support during a difficult period or a vulnerable individual feeling less isolated cannot always be captured through statistics alone.

The new SORP recognises this and allows charities to use a combination of quantitative and qualitative information to demonstrate impact.

For smaller charities in particular, simple stories of positive real-life outcomes for beneficiaries may be just as valuable as complex performance measures.

Questions trustees should be asking now

Although the new requirements will not apply immediately to every reporting cycle, trustees should start to think about whether their current processes support effective impact reporting.

Key questions include:

• Do we currently collect information that demonstrates our impact?
• Can we explain outcomes as well as activities?
• Are we capturing beneficiary feedback consistently?
• Who is responsible for gathering impact information across the organisation?
• Does our annual report clearly communicate the difference our charity makes?

Addressing these questions early will make implementation much easier.

Embrace the opportunity to strengthen your organisation

The most effective charities have always focused on the difference they make.

SORP 2026 provides an opportunity to communicate that difference more clearly and consistently.

Rather than viewing impact reporting as an additional burden, trustees should see it as an opportunity to strengthen stakeholder confidence, demonstrate accountability and showcase the value of their organisation's work.

If you're unsure whether your current reporting arrangements will meet the new requirements, now is the time to review your approach.

Our specialist charities team can help you understand the implications of SORP 2026, assess your current reporting framework and identify practical steps to strengthen impact reporting across your organisation. For more information, please contact Hannah Catchpool or Kerry Gallagher.

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