One in five charities have not yet started preparing for the sector’s new accounting rules, a survey has found.
Charity Finance Group (CFG) recently surveyed 101 charities across the Charities Statement of Recommended Practice (SORP) 2026’s three reporting tiers to find out how ready they felt.
The survey, released today, shows that while most charity leaders understand how the new requirements will impact their charity, “a significant number still have practical work to do before it takes effect”.
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).
Gaps in preparation
Nearly two-thirds of respondents told CFG they were very or fairly confident that they understood the requirements.
However, over a third did not express confidence, including one in five who said they were not very or not at all confident.
The survey shows that only 4% said they were fully prepared, with 30% mostly prepared and 39% partly prepared, “with significant work still to do”.
It also identifies gaps in preparation, finding that 19% have not yet started preparing.
A similar number (20%) said they had identified changes needed to their systems, data collection or record keeping, while 14% had agreed on an implementation timetable.
Just over one in five respondents reported fully assessing the SORP’s new lease accounting requirements, with a similar number (23%) reporting not yet assessing them.
On the SORP’s new income recognition rules for exchange contracts, the survey shows that 16% of respondents had fully assessed them and 27% had not done so yet.
Charities urged to make a start now
CFG said there were positive signs too, as over half of respondents said they had a named member of staff responsible for the SORP’s implementation.
Likewise, over 50% said they had discussed the changes with their auditor or independent examiner and briefed their trustees or audit committee.
More than eight in 10 respondents agreed that charities were responsible for implementing the Charities SORP changes themselves, “and that this can’t simply be left to their auditor or adviser”.
Respondents were also asked where they would like more support. Just over one in five mentioned lease accounting, followed by income recognition (15%) and the trustees’ annual report (11%).
CFG said it is worth noting that it conducted its survey before the release of the Charity Commission’s lease accounting help sheet.
Richard Sagar, head of policy at CFG, said: “It’s encouraging to see so many charities telling us they understand what the new SORP asks of them.
“But understanding the changes and being ready for them are two different things.
“Updating systems and collecting the right data takes time, and with the new requirements already applying to accounting periods starting this year, charities that haven’t begun yet should make a start now.”
