Consultation launched on charities accounting and reporting framework

The joint SORP-making body has today launched a public consultation on the next version of the charities' accounting and reporting framework.

The ‘Statement of Recommended Practice: Accounting and Reporting by Charities’ (‘the SORP’) ensures consistency and transparency across the sector, making charity accounts comparable, understandable and useful for donors, beneficiaries, and the public alike.

It has been updated following an extensive development process informed by the views of engagement partners and a sector-specific SORP Committee.

The SORP-making body is now inviting comments on the draft as the feedback will help shape the final version, which is expected to be published in autumn 2025 and effective from January 2026.

The SORP has been updated to reflect changes introduced by the Financial Reporting Council (FRC) to FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland – and in particular to reflect changes to how charities will need to recognise certain types of income and certain types of leases in their accounts.

The consultation is seeking views on how the revised requirements are explained in the context of charities. Charities are also encouraged to ready themselves for these two changes, the substance of which is already decided.

Improvements are also proposed in other areas that are within the discretion of the SORP-making body. These are to make the SORP more straightforward to navigate for charities, and to improve information for beneficiaries, donors and the public about how charity resources are stewarded.

These proposed changes include:
- introduction of 3 tiers based on income levels to ensure proportionate reporting, whilst also meeting the information needs of users
- advancing reporting in important areas such as impact reporting, reserves, going concern and volunteers
- introduction of proportionate reporting for environmental, social and governance issues.

The SORP-making body is keen to hear the views of charities, preparers, auditors and independent examiners of charity accounts, trustees, employees and beneficiaries of charities and others who may use charity accounts including donors, funders, financial supporters and other stakeholders.

The consultation on the ‘Exposure Draft of the Charities Statement of Recommended Practice: Accounting and Reporting by Charities’ will run from 28 March 2025 for 12 weeks.

The joint SORP-making body comprises the Charity Commission for England and Wales, the Office of the Scottish Charity Regulator and the Charity Commission for Northern Ireland. The Charities Regulator for the Republic of Ireland is an observer on the SORP-making body.

Charity Commission for England and Wales Chief Executive David Holdsworth CEO, said: Some charities have to prepare accounts using the Charities SORP, whilst others choose to do so. The framework promotes transparency and accountability over the stewardship of the resources charities hold, which is vital to public trust and confidence in the sector. This new draft has been developed through extensive engagement with experts including through the SORP Committee, and can be improved further through this formal consultation. I really encourage charities and others with an interest or experience to give us their feedback.

Reply to the consultation here



Share Story:

Recent Stories


Charity Times video Q&A: In conversation with Hilda Hayo, CEO of Dementia UK
Charity Times editor, Lauren Weymouth, is joined by Dementia UK CEO, Hilda Hayo to discuss why the charity receives such high workplace satisfaction results, what a positive working culture looks like and the importance of lived experience among staff. The pair talk about challenges facing the charity, the impact felt by the pandemic and how it's striving to overcome obstacles and continue to be a highly impactful organisation for anybody affected by dementia.
Charity Times Awards 2023

Mitigating risk and reducing claims
The cost-of-living crisis is impacting charities in a number of ways, including the risks they take. Endsleigh Insurance’s* senior risk management consultant Scott Crichton joins Charity Times to discuss the ramifications of prioritising certain types of risk over others, the financial implications risk can have if not managed properly, and tips for charities to help manage those risks.

* Coming soon… Howden, the new name for Endsleigh.