Is Your Trustees’ Report Ready for SORP 2026?: Trustees’ Week 2026

Major changes to charity reporting are on the horizon. The Charities SORP 2026 applies to accounting periods beginning on or after 1 January 2026 and introduces important updates across the annual report and accounts, including the Trustees’ Annual Report (TAR).

What is the difference between SORP 2019 and SORP 2026?

Compared with the current SORP, the 2026 SORP update places greater emphasis on a charity’s impact on the environment and beneficiaries, reserves, sustainability, going concern, working with volunteers and future plans. The new SORP also introduces three reporting tiers, which aim to simplify charity reporting.

What should Trustees do to prepare their Annual Report?

1. Determine the financial year your charity will start reporting under the new SORP

Charities may choose any financial year, but only the accounting period’s start date determines which SORP applies. For example, a year from 1 April 2025 to 31 March 2026 remains under SORP 2019 because it began before 1 January 2026. The following year, beginning 1 April 2026, falls under SORP 2026.

Tip: The same start-date test applies where the accounting period is shorter or longer than 12 months.

2. Determine your charity’s gross income for the financial year

For charities in England and Wales, gross income is all your income from all sources, including special trusts. However, gross income excludes gains on revaluations or sales of fixed assets, receipts of loan repayments if the charity is a lender, and the initial recognition of endowments.

Tip: You can find gross income on your Statement of Financial Activities.

3. Check whether your charity will be classed as Tier 1, Tier 2, or Tier 3

Refer to the table in point 35 of the new SORP for the thresholds.

Tip: You will need to consider which tier is relevant every reporting period, so be wary if your charity’s gross income fluctuates around the border of two tiers.

4. Understand the requirements of your tier

The requirements are cumulative: Tier 2 charities must comply with Tier 1 and Tier 2 requirements, while Tier 3 charities must comply with all three tiers.

Tip: Pay close attention to the distinction between “must”, “should” and “may”; see paragraphs 40 to 43 for further detail.

5. Check Module 1 for the requirements of your Trustees’ Annual Report

The requirements for the Trustees’ Annual Report are set out in Module 1. Use Table 1 to identify the relevant paragraphs for your charity’s tier.

6. Write your Trustees’ Annual Report

This is the perfect place to showcase all you have achieved in the year. We see a wide range of annual reports, with some being just a few pages of text, and others over 50 pages long filled with pictures and inspirational stories.

Conclusion

Trustees should identify their charity’s reporting tier, review the current annual report against the new requirements and address any gaps in impact, reserves, sustainability, going concern, volunteer and future-plans reporting. Collecting this information early will make the transition smoother and help produce a clearer, more useful report for stakeholders.

Get In Touch

As charity advisors, we are pleased to assist with the new requirements and applying them proactively to your specific circumstances. For more information or assistance,  get in touch with your local Whitings office today.