SORP 2026 introduces enhanced reporting requirements for Tier 2 charities, with charities expected to provide greater clarity, transparency and detail in their trustees’ annual report. In this short video, we explain the key Tier 2 requirements, including objectives and activities, impact reporting, volunteers, financial review, investments, legacy income and future plans.
For charities with income of £1 million or more, the revised SORP builds on the baseline requirements that apply across all tiers, with additional expectations around the depth and detail of reporting.
In this video, we cover:
- What the Tier 2 requirements mean under SORP 2026 and how they build on the requirements for Tier 1 charities.
- The distinction between ‘must’, ‘should’ and ‘may’ requirements under the revised SORP.
- Changes to reporting on a charity’s short- and long-term aims and objectives.
- Impact reporting, including the effects of activities on beneficiaries and wider society.
- Reporting on outputs, outcomes and performance measures, including positive and negative factors affecting future plans.
- New expectations around reporting general volunteers and their contribution to charitable activities.
- Changes to the financial review, including principal sources of income, expenditure, risks and material investments.
- New disclosure considerations for material legacy accruals and how these affect the understanding of income and future cash flows.
- The requirements for reporting on future activities and how past experience can inform future plans.
For Tier 2 charities, the revised SORP places greater emphasis on providing a clear picture of the charity’s objectives, activities, impact and financial position, helping readers understand not only what the charity does, but the difference it makes.
This is the second in a three-part video series exploring the trustees’ annual report requirements under SORP 2026, covering Tier 1, Tier 2 and Tier 3 charities.