Charities SORP 2026 and more – it’s been busy!

We’ve created a resource hub to collate everything you need to prepare for the upcoming changes to the Charities SORP and brought together other resources for trustees and volunteers. Find out what we’ve been working on.

As part of our commitment to representing the voice of the profession on charity matters, ICAEW has submitted formal responses to two major consultations that will impact charities and their financial reporting.

We responded to the Department for Digital, Culture, Media and Sport’s recent consultation on whether to adjust the financial thresholds set out in the Charities Act 2011. These thresholds determine, for example, when charities in England and Wales must have their accounts independently examined or audited. In our response, we advocated for increasing thresholds periodically at least by the amount of inflation to maintain proportionality, and we called for a simpler regulatory regime.

We also responded to the public consultation on the Exposure Draft of the 2026 Charities SORP (Statement of Recommended Practice), urging for a joined-up approach on charity reporting to better reflect the realities of smaller charities. Many of you have reported that charities will find it difficult to implement the new requirements without the help of advisers, taking critical resources away from charitable causes.

Daniel Chan, Partner and Charities Leader at PwC and Chair of the ICAEW Charity Committee, said: “Together, the amendments to FRS 102 and the Charities SORP 2026 represent a significant change to financial reporting for charities. Charities preparing accounts on an accruals basis will need to work out how they will be impacted and be prepared for the adoption of these new accounting standards.”

The Charities SORP 2026 is expected to be published in the autumn, allowing for amendments arising from the consultation responses, and it will take effect for financial periods starting on or after 1 January 2026. With a short window for the transition, preparation is key, especially for the changes to lease accounting and revenue recognition.

We’ve created a resource hub to help you access webinars, resources and tools about the SORP changes in one place, and we will add new resources and webinars to the hub in the coming months.

This year’s Big Trustee Breakfast brought together trustees, and those interested in the role to discuss governance practices, examine the critical relationship between a charity CFO and the treasurer, and to hear a thought-provoking keynote on how to become a high-performing board.

If you weren’t able to join us live, or would like to revisit some of the highlights, you can now access recordings of all sessions.

In June, ICAEW proudly celebrated Volunteers’ Week, and heard from serial volunteer and ICAEW member John Tennent about his experience as trustee, treasurer – and volunteer steward!

During Volunteers’ Week, we used social media posts and emails to remind members of the support we offer to volunteers and charities alike. We also took the opportunity to thank our many members who give their time and expertise so generously to help charities manage their finances in challenging times.

If this has whetted your appetite, you can find wonderful volunteering opportunities on ICAEW Volunteers. In this newsletter, we also hear from ICAEW members Marie Langan and Fiona Young about how you can use your skills to provide pro bono management consultancy to UK charities with Cranfield Trust.

If you want to remind yourself of all the resources we offer to charities and volunteers, visit the Charity Community homepage and remember that our resources are free and open to members and non-members alike. We encourage you to tell your colleagues in the sector about how we can help – sharing is caring!