Helping you prosper
SORP 2026 places renewed emphasis on the Trustees’ Annual Report, strengthening its role in explaining performance, impact and future plans. For many charities, this will require more structured and joined-up narrative reporting.
This blog is part of our SORP 2026 series and builds on the accounting changes discussed in earlier posts.
What is changing?
All charities, regardless of tier, must provide clearer commentary on:
- aims and objectives
- achievements and performance
- plans for the future
- financial review, including reserves and going concern.
The Trustees’ Annual Report should be clearly linked to the financial statements, helping readers understand how the numbers support charitable activities.
Tier 1 charities are asked to consider how their work made a difference to beneficiaries and provided benefit to wider society. Tier 2 and 3 charities are required to explain the impact the charity is making and must consider the long-term effect of its activities on individual beneficiaries and on society. Both positive and negative factors should be included.
SORP 2026 also expands expectations around environmental, social and governance matters, as well as recognising the contribution of volunteers where this can be measured reliably.
The next step
Review your current Trustees’ Annual Report and identify gaps against the new expectations. Consider how narrative and financial information can better support each other. In the next blog, we highlight other SORP 2026 changes that charities should not overlook.
Download our guide
To explore all six SORP 2026 changes in one place, download our guide below. This practical guide brings together the complete picture, with clear explanations and considerations to help charities prepare with confidence.
