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Consultation Launched on Changes to Charity Accounting Rules

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08 Apr, 2025by Caitlin MackayConsultation

Charities across the UK are being invited to have their say on a significant update to the accounting and reporting framework that governs much of the sector.

The Charity Commission, along with its counterparts in Scotland and Northern Ireland, has launched a public consultation on the next version of the Charities’ Statement of Recommended Practice (SORP) the key framework for charity accounting and reporting.

Why this matters

SORP is the standard used by:

  • Charitable companies, and
  • Charities with an income over £250,000
     

It ensures a consistent, transparent, and comparable approach to financial reporting, helping trustees, funders, donors, and the public understand how charities are using their resources. The framework supports good governance and accountability across the sector and changes to it can affect how charities structure their annual reports and financial statements.

What’s changing?

The new version of SORP has been developed following a wide-ranging review and input from sector experts through the SORP Committee. It reflects updated accounting standards and aims to improve how charities communicate their financial performance and impact. A draft of the revised SORP is now available, and the regulators are encouraging charities and sector professionals to review and comment.

When will it come into effect?

The final version of the new SORP is expected to be published in autumn 2025, and the changes will apply to financial years starting on or after 1 January 2026.

What should charities do now?

Charities that prepare accounts under the SORP should begin familiarising themselves with the proposed changes to understand what’s coming and consider how it may affect their future reporting. Taking part in the consultation is also a great opportunity to help shape the final guidance, ensuring it’s practical and reflects the realities of working in the sector.