Why accountants are the guardians of public trust

This represents a governance gap that accountants are well positioned to close. By moving beyond simple compliance to active financial stewardship, you can serve as guardians of public trust.

Public trust in charities remains resilient at 57%, outperforming most other institutions. However, this trust is not unconditional. The research shows that the single most important factor for the public is knowing that money is reaching the end cause.

While financial pressures are affecting the public’s ability to give, donors are becoming more selective rather than simply less generous. They are increasingly seeking visibility of impact and are more likely to protect their donations to local or personally relevant causes where they can see the difference their money makes.

For trustees, this means the annual accounts are not just a statutory requirement; they are a vital communication tool. Accountants can bridge the gap by helping boards move from reporting ‘what we spent’ to ‘what we achieved,’ providing the transparency that sustains public support.

The Charities SORP 2026 places a stronger emphasis on helping readers of charity accounts understand how donations and other resources are used to deliver public benefit. Through enhanced requirements for the Trustees' Annual Report, including new impact reporting expectations, charities are encouraged to provide clearer explanations of the outcomes they have achieved and how these relate to their objectives and use of resources.

The 2026 SORP also promotes greater consistency between the narrative reporting in the Trustees' Annual Report and the financial statements, enabling readers to more easily connect the story of the charity's activities with its financial performance. In addition, the continued requirement (for Tier 2 and 3 charities) to allocate support and governance costs across the activities reported in the Statement of Financial Activities helps to paint a picture of the full cost of delivering services. This allows donors, funders and other stakeholders to better understand how funds have been applied to achieve the charity's mission.

The new SORP’s enhanced reserves reporting requirements for charities of all sizes improve transparency about the nature and availability of the charity's funds, giving non-financial trustees clearer information to support decision-making and strengthen financial resilience.

Perhaps the most striking finding for professional accountants is the decline in trustee confidence regarding financial management. While overall trustee confidence remains high, it has become increasingly linked to experience, and the specific area of finance has seen a downward trend since its peak in 2025.

Most trustees understand their basic duties, but significant knowledge gaps exist in practical areas such as:

• Implementing and monitoring key financial controls
• Identifying and managing specific conflicts of interest

As an accountant, your role is to translate these technical requirements into actionable board policies. The data shows that trustees who regularly engage with Charity Commission guidance demonstrate a much stronger understanding of their legal responsibilities and better financial requirements. By encouraging your fellow trustees to use these resources, you can improve the collective financial awareness of the board, leading to more robust decision-making and more effective challenges to executive leadership.

Beyond high-level governance, the 2026 report sheds light on the practical financial challenges charities are facing. Accountants are often the first line of defence when these issues arise:

• Banking challenges: over a third of trustees reported experiencing banking issues in the past year. While this is a slight improvement from 2025, it remains a significant operational friction point that requires professional oversight.
• Financial adaptation: charities are increasingly turning to new technology and seeking new funding sources to remain resilient. As a finance professional, your expertise is essential in assessing the risk-to-reward ratio of these new ventures.
• Reserves management: on a positive note, fewer charities report using more reserves than planned compared to previous years, suggesting a move toward more sustainable long-term planning.

The 2026 research confirms that it is more important than ever for charities to be led by competent, confident boards. For chartered accountants, this is a call to action. By focusing on robust financial controls, transparent impact reporting and the proactive use of regulatory guidance, you can play an active role in protecting the foundation of trust upon which the entire sector built.

Find out more: for the full data and detailed findings, you can access the two primary reports via GOV.UK:

• Public trust in charities 2026
• Research with trustees 2026