Charity and NFP Sector Outlook 2026/27

The 2026/27 charity and not-for-profit sector outlook arrives at a pivotal moment. The finalisation of the new Charities SORP 2026 and the most substantial changes to charity tax legislation in over a decade are set to reshape financial reporting, governance and operational decision-making across the sector. At the same time, rising employment costs, increased HMRC scrutiny and growing demand for services continue to place significant pressure on organisations already operating with limited resources.

But alongside these challenges lies real opportunity. Charities are demonstrating remarkable resilience. From outsourced finance functions to AI governance frameworks, the sector is adapting with purpose and determination.

In our 2026/27 Charity and Not-for-profit Sector Outlook, our specialist team from across UHY has come together to provide a practical and forward-looking guide to the issues that matter most to charities right now.

Inside this year's edition, you will find:

• a practical guide to the finalised Charities SORP 2026, including the new tiered framework and strengthened requirements for impact and sustainability reporting
• expert guidance on dilapidations provisions and the new lease accounting requirements under SORP 2026
• insights into building organisational resilience
• a comprehensive overview of the most significant charity tax changes in over a decade, including tainted donation rules, investment standards and legacy income treatment
• ten essential VAT compliance checks for trustees and finance managers, with real-world case studies
• an in-depth look at AI governance in the charity sector - the risks, the legal duties and the practical steps trustees must take
• guidance on combating charity fraud and cyber threats, including the latest data on sector vulnerabilities
• analysis of the revised audit thresholds from October 2026 and how to decide whether audit or independent examination is right for your charity

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:

• Dr Nik Kotecha OBE DL, founder and chairman of The Randal Foundation, shares his evidence-led approach to purposeful giving and the Foundation's ambition to save and significantly improve one million lives.
• Emma Woods-Bolger, chief executive officer of the Blue Light Card Foundation, discusses how the charity supports the mental health and wellbeing of the UK's emergency services community, and how collaboration between charities and businesses can deliver lasting change.

Access our 2026/27 Charity and NFP Sector Outlook