The new SORP is coming...
SORP changes are incoming, here's what you need to know.
The new Statement of Recommended Practice (SORP), expected in 2026, will introduce the most substantial changes to charity reporting in nearly a decade. While the aim is greater clarity and transparency, the new framework also brings technical changes that finance teams will need to plan for well in advance.
One of the most significant updates is the incorporation of changes to international accounting standards, particularly in relation to revenue recognition and lease accounting. For some charities, this will have a significant implication on both your statutory accounts and management accounts.
Beyond the numbers, the new SORP will also demand a clearer narrative in trustees’ annual reports, with a stronger emphasis on how charities explain financial performance, risk, and governance. There is a growing expectation that trustees are actively engaged in financial oversight, and that reporting reflects this level of scrutiny and responsibility.
Impact reporting is also under the spotlight. Charities will be encouraged to give more meaningful insights into outcomes, not just outputs, and to link their financial and non-financial performance more effectively.
To prepare, charities should start reviewing their current reporting processes and identify areas for improvement. This includes updating policies around risk management, ensuring clear narrative explanations alongside financial statements, and engaging trustees in the reporting process to meet the new standards confidently.
Adapting early will not only help with compliance but also create an opportunity to strengthen your charity’s reputation and stakeholder relationships. The new SORP will help charities tell a clearer financial story and improve consistency across the sector, but it will also require time, planning and careful implementation.
Sayer Vincent Partner, Joanna Pittman, is running a session on SORP at The Charity Accountants’ Conference taking place on Wednesday 12 November and Thursday 13 November. Learn more and register here.
