New trustee annual report requirements for charities (SORP 2026)
Significant updates to trustee annual reporting are coming into force for accounting periods ending on or after 31 December 2026. Although implementation is still some distance away, charities and Not-for-Profit organisations may wish to begin adopting the new structure now – particularly when preparing their December 2025 or March 2026 year end reports. Early adoption can help strengthen transparency, improve stakeholder confidence, and reduce future transition pressures. Not-for-Profit organisations may wish to begin adopting the new structure now – particularly when preparing their December 2025 or March 2026 year-end reports. Early adoption can help strengthen transparency, improve stakeholder confidence, and reduce future transition pressures.
Under SORP 2026, reporting expectations scale according to the size of the charity, assessed primarily by income. The framework introduces three reporting tiers, each with progressively more detailed requirements covering transparency, governance, sustainability and performance:
Tier 1 – Income below £500,000
Designed for smaller charities, Tier 1 includes proportionate and simplified narrative reporting requirements.
Tier 2 – Income £500,000 to £15m
Tier 2 introduces more detailed disclosures than Tier 1, including expanded expectations around aims and objectives, performance and outcomes, governance arrangements, and financial review.
Tier 3 – Income above £15m
Tier 3 incorporates all Tier 2 requirements and adds further mandatory disclosures, particularly in relation to fundraising performance, factors affecting future financial sustainability, and comprehensive sustainability/ESG reporting.
A full breakdown of the requirements for all three tiers is provided below, outlining what trustees must include in their annual report under SORP 2026 and how obligations increase as organisational size grows.
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If you have any questions about the new requirements or financial reporting more broadly, please get in touch with a member of our specialist Charities & Not‑for‑Profit team using the form below.