Charities producing annual reports that clearly explain how they deliver public benefit are best prepared for new filing rules, according to analysis by an accountancy firm.
Published last October, the Charities SORP 2026 applies to charities filing accounts for reporting periods starting on or after 1 January 2026.
One of the key changes is the introduction of a tiered reporting structure based on income (tier one for charities with total income below £500,000, tier two for charities with income between £500,000 and £15m, and tier three for charities with revenues over £15m).
SORP 2026 also introduces disclosure requirements and changes in areas including impact reporting, reserves, environmental, social and governance (ESG) matters and volunteers.
Michael Cooper-Davis and Suzanne Goldsmith, charity partners at Price Bailey, examined how close the reporting of 30 charities was to the new SORP requirements.
They analysed the reports of 10 charities from each of the three reporting tiers and found that in some areas, many organisations were well placed, while in others, “there’s still a gap between current reporting and what SORP 2026 is likely to expect”.
“Perhaps most interestingly, readiness isn’t simply about size. Larger charities often had more developed reporting frameworks, but they didn’t always tell the clearest story,” they said.
“Some smaller charities, particularly where mission and delivery were closely connected, explained their purpose and public benefit with real immediacy.”
Impact reporting readiness
Impact reporting is one of the most important shifts in the revised SORP.
Price Bailey’s analysis finds that nearly all charities explained the work they have carried out and the groups they support in their accounts.
However, it says readiness falls as the reporting expectation becomes more demanding.
Fewer charities explain long-term outcomes, while an even smaller number describe how impact is measured, and only a minority link impact reporting to strategy and future plans.
“One of the more interesting findings was that charities often had plenty of evidence but didn’t always present it as evidence,” the analysis reads.
“Case studies, beneficiary feedback, service data and programme outcomes were sometimes included in different parts of the report without being drawn together into a clear impact narrative.”
Moving from outcomes to evidence
Overall, the analysis shows that many charities are closer to SORP 2026 readiness than they may think, but not always in the areas they expect.
Charities appeared to understand their purpose, describe their activities, explain governance structures and report public benefit.
The challenge, however, is to “make the narrative more connected, more evidenced and more forward-looking”, the analysis says.
“In many ways, the SORP is encouraging charities to explain how today’s resources create tomorrow’s public benefit. Impact reporting shows the clearest direction of travel.
“The sector is moving from activity to outcomes, and from outcomes to evidence.”
“Reserves reporting is moving from compliance to resilience. Volunteer reporting is moving from acknowledgement to contribution. ESG reporting is moving from scattered references to an integrated sustainability narrative.
“The other themes point in the same direction: strategy, risk, governance, public benefit and stakeholder voice all need to be connected rather than presented in isolation.”
Price Bailey’s analysis concludes that the charities best ready for SORP 2026 are “those already moving beyond standalone compliance disclosures and towards a more integrated narrative”.
“They aren’t necessarily producing the longest reports,” it says. “They’re producing reports where the reader can follow the thread: purpose, activity, outcome, resources, risk, governance and future plans.”
The full analysis is available to read in the October 2026 issue of Charity Finance.
