Support Cambridgeshire

Your country, your voice, our support

Become a member Contact us Sign up to our Newsletter

Support Cambridgeshire

Your country, your voice, our support

You are here:

by

SORP 2026: Demonstrating impact

Published on: August 6, 2026

By Support Cambridgeshire’s Development Team

As a result of the Charity Statement of Recommended Practice (SORP 26) all charities reporting to the Charity Commission must be able to demonstrate the difference they make to beneficiaries and to wider society.

SORP 2026 applies to accounting periods beginning on or after 1 January 2026. The aim is simple: more proportionate reporting for small charities and clearer explanations of impact for all charities.

This article focuses on the SORP’s requirement that charities demonstrate their impact.

For finance specific guidance on SORP 26 check out our Finance Manager’s series of blogs:

 

 

Below are the three changes around reporting impact that matter most for grassroots organisations.

  1. A new three‑tier reporting structure

SORP 2026 introduces a clearer tier system based on gross income:

  • Tier 1: up to £500,000
  • Tier 2: £500,000–£15 million
  • Tier 3: over £15 million

Most community charities will fall into Tier 1.

Tier 1 charities still need to explain their purpose, activities and achievements, but the level of detail is proportionate. You are not expected to produce the same depth of reporting as large national organisations.

2. Stronger focus on impact and ESG

Funders and the public increasingly want to understand what changed because of your work — not just how money was spent.

SORP 2026 requires all charities, including Tier 1, to explain:

  • What you achieved during the year
  • Who benefited
  • What difference your activities made
  • What evidence you have for that difference (numbers, feedback, case studies, before‑and‑after examples).

This does not need to be complicated. Simple, practical evidence is fine.

ESG (Environmental, Social & Governance)

SORP 2026 also strengthens reporting on ESG matters. Tier 1 charities do not need a standalone ESG report, but trustees should briefly explain any relevant steps they are taking, such as:

  • managing environmental impacts
  • supporting volunteers and staff
  • protecting data and privacy
  • strengthening governance
  • responding to risks that could affect future work

3. Clearer requirements for Trustees’ annual reports

A Trustees’ Annual Report must now give a more connected and transparent narrative. SORP 2026 emphasises:

  • Purpose and activities
  • Achievements and impact
  • Plans for the future
  • Risks and how they are managed
  • Volunteer contribution (strengthened disclosure)
  • Reserves policy linked to actual reserves — trustees must explain why the level of reserves held is appropriate

For Tier 1 charities, this remains proportionate but must still be clear and complete.

Final Thoughts

SORP 2026 is designed to help charities tell a clearer and more meaningful story about the difference they make. For small charities, the emphasis remains on proportionate, practical reporting rather than lengthy or overly complex documents.

While the increased focus on impact reporting is likely to be the most visible change for many organisations, trustees should also pay close attention to the revised income recognition guidance. Understanding any conditions attached to grants, contracts and other funding arrangements will help ensure income is recognised at the correct time and accounts remain accurate and compliant.

Many small charities may not see significant changes to the figures reported in their accounts. However, trustees should take the opportunity to review funding agreements, strengthen record-keeping and ensure they have simple evidence to demonstrate the impact of their work.

Ultimately, SORP 2026 encourages charities of all sizes to provide clear, transparent and meaningful reporting that helps funders, supporters and beneficiaries understand both how resources have been used and the difference those resources have made.

Useful Resources:

 

Back to top