If you are a trustee of a small charity, you may feel daunted by all the changes that are coming: the next Charities SORP, the new financial thresholds, the changes at Companies House and many other developments that may affect your charity and its governance processes. Small charity trustees often take a more hands-on role in preparing for regulatory changes, so it’s critical you stay informed. We are here to help you!
The new Charities SORP, due to be implemented in 2026, will bring operating leases onto the balance sheet and change how certain income streams are recognised. This adds to new requirements in the trustees’ report in some areas, for example on reserves. Charitable companies are also affected by changes to the regulation of companies, with Companies House rolling out stronger identity verification rules for directors and people with significant control while we are awaiting further announcements on new digital filing requirements.
Meanwhile, the DCMS consultation has closed and we are expecting to find out later this year whether key financial thresholds, for example for audit and independent examination, will increase to avoid disproportionate regulation for small charities. That means trustees (and especially treasurers) may now be busy preparing for accounting changes and shifts in oversight and reporting thresholds.
Preparing for change
Firstly, why not join our free half-day virtual event for trustees of small charities, ‘Small Charities – Preparing for Change’? Last year, nearly 1,500 of you joined the event, and this year we return to help you to prepare for changes to accounting, tax and regulation, and will help you build resilience by adapting your legal structure and finance systems to your charity’s evolving needs.
This event, held on 1 October, features six focused sessions, each led by experts in their fields who regularly work with smaller charities. You’ll learn more about how the filing changes at Companies House will impact charitable companies, how to prepare for the key changes in the Charities SORP 2026 and how to stay abreast of the changing tax landscape. We will also share how you can adapt your annual report to stay compliant with the new SORP and hear from a charitable funder about how to structure your annual report to give your charity the best chance of fundraising success.
Action plan
- Assess the impact of the SORP changes for your charity: if you haven’t familiarised yourself with the key FRS 102 changes to lease accounting and revenue recognition, head to our SORP resource hub, where you can find dedicated webinars on both topics. These areas could have a significant impact and it’s important to prepare now.
- Stay alert this autumn: keep up to date with our monthly newsletters – this autumn, the final SORP 2026 will be published and we’ll keep you informed about key changes. We will also find out about the changes to financial thresholds in England and Wales and will share how they will impact your charity. In addition, we are expecting to see the revised Charity Governance Code soon. Lots of changes to digest this autumn!
- Prepare for Companies House changes: if your charity is structured as a company, ensure all directors are ready to complete identity verification. If your charity is a company, familiarise yourself with the changes and their implementation timetable.
- Engage with your auditors or independent examiners early: talk through how these changes may impact your charity and the complexity and cost of external scrutiny.
- New Fundraising Code: from 1 November 2025, the new Code of Fundraising Practice takes effect. If you are a trustee of a fundraising organisations, you can review the new code and support guides now to get ready.
- Support your trustee colleagues with clear briefings on these changes: last but not least, help your fellow board members understand what these changes mean for your charity.
Don’t forget about your CPD requirements!
If you are a charity trustee, don’t forget our 2024-25 CPD course for charity trustees – you can find it here. This free course consists of two recordings, covering the fundamentals of being a charity trustee (with financial expertise) and 2024-25 developments that impact your role.
We will update Part 2 of the course for the upcoming CPD year a bit later this year because we are awaiting the final new SORP. We plan to record it toward the end of the year and publish the updated course in January 2026. In the meantime, the Charity Community will keep you up to date with articles and topical webinars.
