If you work for a charity, you’ve probably heard “SORP 2026” mentioned recently. And if your first thought was “Sounds exciting…” – we get it.

SORP is the set of accounting and reporting rules charities follow when preparing their annual accounts. The new version applies to accounting periods beginning on or after 1 January 2026, so it’s starting to make an appearance in charity accounts.

But what’s actually changed?

One size no longer fits all

One of the biggest changes is that charities are now split into three reporting tiers, broadly based on income.

The idea is pretty simple: a small community charity shouldn’t have to produce the same level of reporting as a £20 million organisation.

For smaller charities, this should mean more proportionate reporting. Larger charities will have some additional disclosure requirements.

It’s about more than the numbers

SORP 2026 puts more emphasis on what a charity actually achieves.

All charities now need to report on their impact, so annual reports should do more than explain where the money came from and where it went. They should also tell the story of what the charity achieved with those resources.

There’s also more focus on reserves – including why a charity holds them and what they’re for as some funds may be restricted or earmarked for a particular purpose.

Some numbers may look different

There are also some more technical changes behind the scenes, including changes to lease accounting and how certain types of income are recognised.

So, if some figures in your next set of accounts look different from previous years, don’t panic. It doesn’t necessarily mean your charity has suddenly become richer or poorer – the way the figures are presented may simply have changed.

So, is it good news?

Overall, the aim of SORP 2026 is to make charity reporting more proportionate and more useful, giving trustees, funders and the public a clearer picture of what a charity does and how it uses its resources.

SORP 2026 is coming to your next set of accounts but don’t let the jargon put you off. If you’re not sure what’s changing or what you need to do, we’re here to make sense of it all.

No jargon, no waffle, just practical advice.