2026 Charity Reforms: What Trustees Need to Know

9th Sep 2025

Table of contents

Introduction
New Charity Reporting Rules (SORP 2026)
How to get ahead of the 2026 SORP charity reporting rule changes
Companies House Reforms: ID Verification for Trustees
How to deal with companies’ house reforms for trustees
HMRC Compliance Tightening: Donations, Legacies & Investments
How to prepare for HMRC’s stricter rules on donations, legacy income, and investments
Ready to Take Action?

The charity sector is entering a period of significant regulatory change and small charities are especially vulnerable. From financial reporting to governance and tax compliance, the rules are changing, and trustees need to be ready.

In this blog we breakdown the confirmed changes, why they matter, and what trustees should be thinking about now.

New Charity Reporting Rules (SORP 2026)

For financial years starting January 2026 or after, the Statement of Recommended Practice (SORP) is being updated. This will alter the way nonprofits disclose their finances, leases, and revenue.

As a result of the changes, charities will be required to provide more information in their accounts, including income from contracts and leases that were previously ‘off the books’.

How to get ahead of the 2026 SORP charity reporting rule changes

1. Review your income sources and lease agreements

2. Prepare for more detailed annual reports

3. Speak to one of our experts about how this will impact you

Companies House Reforms: ID Verification for Trustees

Moving forward, trustees will be required to verify their identity with Companies House and PO Boxes will no longer be accepted as a registered address. This is part of a wider government initiative to crackdown on fraud and promote transparency.

Failure to comply with the changes may result in penalties or even disqualification.

How to deal with companies’ house reforms for trustees

1. Gather all the relevant documentation

2. Verify your ID through companies house or ask our team to do this for you

HMRC Compliance Tightening: Donations, Legacies & Investments

HMRC is introducing stricter rules around how charities handle donations, legacy income, and investments, including a new test for “tainted donations”.

Due to the changes, charities could face tax charges if they don’t spend legacy income correctly or if donations are linked to financial benefits for the donor.

How to prepare for HMRC’s stricter rules on donations, legacy income, and investments

1. Review your fundraising and investment policies.

2. Ensure legacy income is clearly allocated to charitable purposes.

3. Ask us to audit your compliance and advise on risk areas.

Ready to Take Action?

The earlier you act, the more options you have. Whether it’s updating your financial systems, training trustees, or reviewing governance documents, we’re here to help.

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