Charity and NFP Sector Outlook 2025/26

It’s a year of significant transition for the charity and not-for-profit sector. From the publication of the new Charities SORP exposure draft and changes to audit thresholds, to the growing importance of sustainability reporting and investment governance, there are a host of regulatory and strategic developments shaping how charities operate. At the same time, economic pressures - including rising employer National Insurance contributions and funding uncertainty - continue to weigh heavily on organisations already stretched for resources.

But this is also a year of opportunity. Charities are increasingly rethinking their financial models, embracing ethical finance, exploring digital transformation and aligning their impact with the UN’s Sustainable Development Goals. Many are adopting a more commercial mindset to remain resilient and relevant in an environment where expectations from funders, regulators and the public are higher than ever.

In our 2025/26 Charity and Not-for-Profit Sector Outlook, our specialist team from across UHY has come together to provide a wide-ranging, practical and forward-looking guide to the issues that matter most to charities right now.

Inside this year’s edition, you’ll find:

Analysis of the Charities SORP consultation and what the key changes mean for your reporting obligations
Practical guidance on preparing for budgetary constraints and navigating new financial pressures
Expert commentary on aligning with the UN Sustainable Development Goals (SDGs)
Key insights into investment governance, legacy income accounting and ethical finance
VAT essentials, digital transformation advice and updates on employment law affecting charities

Whether you’re a CEO, trustee, finance director or charity adviser, the Outlook provides actionable insight to help your organisation stay ahead of change and build financial and operational resilience.

Featuring in-depth interviews with sector leaders

We are also proud to feature two in-depth interviews with sector leaders:

Philippa Charles, OBE, Director of the DFN Foundation and former Director of the Garfield Weston Foundation, shares her reflections on impactful philanthropy and leadership.
Victoria Lyons, Head of Digital Service Delivery at Dementia UK – UHY’s national charity of the year – discusses how the charity is innovating in the digital space to improve outcomes for those living with dementia.