Trustees' annual report (SORP 2026)

The first paragraph of the Charity SORP (2026) makes it clear that "The primary purpose of the trustees' annual report is to ensure that the charity is publicly accountable to its stakeholders for the stewardship and management of the funds it holds on trust" The report therefore should "provide a fair, balanced and understandable review of the charity's structure, legal purposes, objectives, financial performance and financial position". The reader should be able to form a view of what the charity has done (output), its achievements (outcomes) and its impact with respect to its charitable purposes.

The level of detail and disclosures to be included is determined by the size of charity.

Accounting report framework from 1 January 2026
Tier 1 - Income up to £500k Tier 2 - Income over £500k up to £15m Tier 3 - Income over £15m
Income up to £250k Income over £250k up to £500k
Non-Company Charity Charitable Company All Charities All Charities All Charities
  • Income and Expenditure, charities may choose to adopt either the activity basis or natural basis for reporting expenditure
  • or Charities may choose Receipts and Payments reporting
Income and Expenditure, charities may choose to adopt either the activity basis or natural basis for reporting expenditure Income and Expenditure, charities must adopt the activity basis for reporting Income and Expenditure, charities must adopt the activity basis for reporting Income and Expenditure, charities must adopt the activity basis for reporting
Trustees' report framework as set out in the 2026 SORP
Tier 1 Tier 2 Tier 3
Reference and Administrative Details SORP Tier 1 and Tier 2 paras. 1.56-1.57; Tier 3 1.56-1.59
Name of Charity as over as over
Other name charity is known by as over as over
Registered Charity Number for the jurisdiction(s) and Company number (if applicable) as over as over
Charity Regulator as over as over
Charity's principal address as over as over
Names of Trustees at date of report; Also indicating offices held and body or person entitled to appoint (if any) as over
Names of Trustees who acted during the period; Also indicating offices held and body or person entitled to appoint (if any) as over
Corporate Trustees (if any); the names of directors at the date of the report as over
Custodian or Nominee trustees; both at the date of the report or who acted during the period as over
    Details of the delegated day-to-day management; Including names of chief executive and senior staff at the date of the report and who acted during the period
    Names and addresses of other relevant organisations such as auditors, bankers or solicitors
Structure, governance and management SORP Tier 1 paras. 1.51-1.52; Tier 2 and Tier 3 paras. 1.51-1.55
Describe the type of governing document; could include trust deed, memorandum and articles of association, charity commission scheme, Royal Charter or for Anglican churches the PCC Powers Measure as over
Describe how the charity is constituted; such as limited company, unincorporated association, trustees incorporated as a body, charitable incorporated organisation (CIO), community benefit society or friendly society etc. as over as over
Details of methods used to recruit and appoint new charity trustees; this could include procedures to ensure there is an appropriate mix of skills, ethnicity and gender. as over as over
  Describe the charity's organisation structure and where relevant, those of subsidiaries. How key decisions are made and where they are made, by trustees or delegated. Details of sub-committees where relevant as over
  Details of policies and procedures for the induction and training of trustees. Demonstrate how the charity provides its trustees with appropriate help and guidance to fulfil their role as over
  Describe how the charity makes decisions, for example, which types of decisions are taken by the charity's trustees and which are delegated to staff. as over
  What are the arrangements including criteria or benchmarks, for setting remuneration for the key management personnel. Details of any remuneration sub-committee and its constitution. as over
  Describe relationships with related parties including all key partnerships and any trading subsidiaries as over
  Details of wider networks including membership of or affiliation with any umbrella bodies. Are there any impacts on the operating policies of the charity as over
Objectives and activities SORP Tier 1 paras. 1.20-1.23; Tier 2 and Tier 3 paras. 1.20-1.27
Summarise the purposes of the charity as set out in its governing document as over as over
Summarise the main activities in relation to those purposes for the public benefit, in particular the activities, projects or services identified in the financial statements as over as over
For charities in England and Wales and Northern Ireland, explain the main activities undertaken to further the charity's purposes for the public benefit. A statement must be included that trustees confirm they have had regard to the Charity Commissions's guidance on public benefit as over as over
Explain the scale and nature of the activities undertaken by volunteers and the input from volunteers as over as over
The financial statements included within the Trustees report embody the financial impact of activities, projects and/or service. This section must explain those undertakings to allow a reader of the financial statements to gain a better understanding of those statements. as over as over
  Charities should provide a detailed understanding of their short term and longer aims and how the short term relates to the longer term. The reader should be able to understand the scale and resources (Staff, money spent, etc.) used in the activities undertaken.
as over
  The commentary should provide answers to the following:
  • What aims and objectives have the trustees set for this year and what issues do they seek to address?
  • What significant activities does the charity undertake and how do these contribute to the achievement of the stated aims and objectives?
  • What are the changes or differences the charity seeks to make through its activities?
  • What are the charity's strategies for achieving its aims and objectives?
  • What criteria or measure does the charity use to assess success in the reporting period?
 
  • Explain the use, if any, of social investment, grant making and volunteers
  • In the case of volunteers, detail the activities volunteers are involved in and the contribution in terms of hours or staff equivalent
as over
Achievements and performance SORP Tier 1 para. 1.28; Tier 2 paras. 1.28-1.33; Tier 3 paras. 1.28-1.34
Summarise the main achievements of the charity both in a qualitative and quantitative way, identifying the difference the charity's work has made to its beneficiaries and if relevant to wider society. Use of infographics, statistics, and testimonials my assist in communication. as over as over
  Set out how well the activities undertaken by the charity and subsidiaries performed and met the aims and objectives for the reporting period. as over
  Where material financial investments are held, review investment performance against objectives. as over
  Explain and demonstrate the impact the charity is making, considering the long-term effect of its activities on beneficiaries and society as a whole.
  • Summarise the measures or indicators used to assess performance
  • Explain the outputs achieved by particular activities; use numerical measures if appropriate
  • Provide information on activities, outputs and outcomes to demonstrate how they have contributed to the aims and objectives.
  • Comment on any significant positive or negative influencing factors including how they may impact future plans
 as over
    Report on the performance of material fundraising activities against fundraising objectives, including the effect any major expenditure has had on funds raised now and into the future.
Financial Review SORP Tier 1 paras. 1.35-1.43; Tier 2 paras. 1.35-1.46; Tier 3 paras. 1.35-1.47
Review the charity's financial position at the end of the reporting period. as over as over
Explain any policy it has for reserves, stating the amount and why they are held also include
  • the amount of the total funds the charity holds and the end of the reporting period
  • Identify the amounts that are restricted and generally not available
  • explain any material designated amounts and the likely timing of expenditure or commitment
  • Compare the amount of the reserves against the policy and explain any variances and plans to correct if relevant
If, at the date of approving the report and accounts, there are uncertainties about the ability of the charity to continue as a going concern these must be explained as over as over
Identify and give details of any fund or subsidiary that is materially in deficit, explaining the circumstances and actions being taken to eliminate the deficit as over as over
  comment on significant events that have effected the financial performance and position of the charity during the reporting period, in particular
  • the financial effects of significant events
  • where the charity hold material financial investments, the investment policy and objectives
  • describe the principal risks and uncertainties facing the charity as determined by the trustees; summarise the risk management plans.
  • outline any factors that are likely to impact future financial performance
as over
 
  • describe the principal funding sources in the reporting period and how they support the key objectives
  • show the impact, if any, of a material pension liability from any schemes in place
  • where material investments are held, explain the extent, if any< to which it takes social, environmental or ethical considerations into account in its investment policy
 as over
    Explain any factors that are likely to affect the financial performance or position going foward
Plans for future period SORP Tier 1 para. 1.48; Tier 2 and Tier 3 paras. 1.48-1.50
Provide a summary of the charity's plans for the future. as over as over
  Provide a summary of the charity's plans for the future, including its aims and objectives and details of any activities planned to achieve them. as over
  Explain the trustees' view of the future direction of the charity, detailing how experience and lessons learned have influenced future plans and decisions about allocating resources to the best effect. as over
Sustainability SORP Tier 1 and Tier 2 para. 1.60; Tier 3 paras. 1.60-1.65
The charity is encouraged to explain how it is responding to and managing environmental, governance and social matters. as over as over
    Explain how the charity is responding to and managing environmental, governance and social matters. Including
  • Details of key performance indicators in relation to climate related risks and opportunities
  • Report on social opportunity, privacy and data security, board diversity and business ethics