In 2025, the UK charity sector faces a landscape of evolving challenges and opportunities. Trustees are under increasing pressure to ensure robust governance, ethical oversight and financial transparency, all while adapting to legislative changes and shifting public expectations. At UHY Hacker Young, we specialise in providing expert guidance to charities and their trustees, helping them navigate these complexities with confidence.
Here, we highlight some of the most pressing issues facing trustees in 2025 and provide practical advice to support their crucial work.
1. Addressing the Trustee recruitment crisis
Recent studies reveal that four in five charities are operating with at least one vacant trustee position, creating skill gaps and governance challenges. Trusteeship is an essential role that requires a diverse range of expertise, from financial management to safeguarding and risk oversight.
Our advice
- Conduct a skills audit to identify gaps on your board
- Explore non-traditional recruitment methods, such as reaching out to corporate partners, universities, or professional networks
- Highlight the professional development opportunities of trusteeship to attract skilled candidates.
We can assist in developing recruitment strategies and providing training for new trustees to ensure they are equipped to meet the demands of the role.
2. Keeping governance standards high
Trustees are responsible for ensuring that their charities operate within legal and ethical boundaries. Recent investigations by the Charity Commission have emphasised the importance of proactive governance, particularly regarding associations, partnerships and activities that might pose reputational risks.
Our advice
- Schedule regular governance reviews to assess compliance with the Charities Act 2022 and other regulations
- Develop clear policies for partnerships and affiliations to mitigate reputational risks
- Ensure all trustees receive up-to-date training on governance best practices.
At UHY Hacker Young, we offer governance audits and workshops tailored to the unique needs of the charity sector.
3. Aligning investments with charitable objectives
Charities are increasingly expected to align their investments with their missions and ethical values. The Charity Commission has issued new guidance to help trustees ensure their investment strategies reflect their charity’s purpose.
Our advice
- Review your charity’s investment policy to ensure it aligns with your mission and public expectations
- Consider the long-term impact of your investments, including environmental, social and governance (ESG) factors
- Work with professional advisors to balance ethical considerations with financial performance.
Our charity sector specialists can provide guidance on investment governance, helping you navigate this complex area with confidence.
4. Safeguarding as a non-negotiable priority
The safeguarding of beneficiaries, staff and volunteers remains a critical focus for trustees. High-profile inquiries, such as the Charity Commission’s investigation into Mermaids, have underscored the importance of having robust safeguarding policies and procedures in place.
Our advice
- Conduct regular safeguarding reviews to identify potential risks and implement necessary changes
- Train all staff and trustees on safeguarding responsibilities
- Ensure your safeguarding policies are publicly accessible and reviewed annually.
UHY Hacker Young can support your charity with safeguarding audits and compliance checks to give you peace of mind.
5. Transparency in financial management
Financial transparency is vital for maintaining public trust in the charity sector. Instances of financial mismanagement have highlighted the need for trustees to ensure funds are used appropriately and in line with donors’ intentions.
Our advice
- Establish clear reporting processes for income and expenditure
- Regularly review financial controls to prevent fraud or misuse of funds
- Publish detailed annual accounts and reports to demonstrate accountability.
Our team of charity sector accountants can help you implement best practices for financial management and reporting, ensuring compliance with the latest regulations.
6. Adapting to changes in the Charities Act 2022
The phased implementation of the Charities Act 2022 continues to affect how charities operate. From updating governing documents to ensuring compliance with new rules on fundraising and disposals, trustees must stay informed to avoid falling afoul of the law.
Our advice
- Review your charity’s governing documents to ensure they are up to date
- Seek professional advice on legal and financial changes affecting your operations
- Use Charity Commission guidance as a starting point, but consider tailored advice for your specific circumstances.
Our specialists can provide clarity on the changes introduced by the Charities Act and help you implement them effectively.
How UHY Hacker Young can help
At UHY Hacker Young, we understand the unique challenges facing the charity sector in 2025. Our dedicated team of accountants and advisers specialises in providing tailored support to trustees, from financial reporting and governance reviews to strategic planning and investment advice.
We are committed to helping charities thrive by offering expertise that ensures compliance, enhances efficiency and builds public trust. To learn more about how we can support your charity, get in touch with our charity sector team today.
The next step
For more information or to arrange a consultation, do not hesitate to get in touch via the contact form below.