SORP 2026 Changes Education Charities Must Prepare For

SORP 2026 Changes Education Charities Must Prepare For

For education charities, the Trustees' Annual Report is not just a compliance document; it is a key strategic tool. The Charities Statement of Recommended Practice (SORP) 2026 updates raise the bar for how charities must report on impact in their financial documents. This blog outline show education charities need to prepare for the changes ahead.

The Trustees ’Annual Report (TAR) is one of the critical pieces of information that funders consider when making investment decisions, ranking more highly in our Be Fundable research than strategy and website. The TAR is often a funder's first substantive encounter with an organisation, and shapes perceptions of governance, leadership, and impact.

To build your organisational narrative and maximise chances of being funded, the TAR must be a quality reflection of your work –including mission, activities and impact. This is why the newly published Charities SORP 2026 - taking effect for accounting periods beginning on or after 1 January 2026 - matters so much. It isn't just a technical accounting update; it's the most significant overhaul of charity reporting requirements since 2019, and it offers education charities a genuine opportunity to strengthen how they demonstrate impact to funders.

1. Impact Reporting Becomes Mandatory

The days of treating impact as a 'nice to have' addendum are over. Under SORP 2026,all charities must explain their impact, covering both direct impact for beneficiaries and broader contributions to society.

What this means for education charities: Your Trustees' Annual report should articulate not just activities delivered (workshops run, pupils reached, teachers trained) but the difference those activities made. For example, how did attainment change? What shifted in pupils' attitudes to learning? How are schools embedding your approaches beyond the funded programme?

The SORP actively encourages qualitative narrative alongside quantitative measures, personal stories from beneficiaries, concrete examples of transformation. This aligns perfectly with what funders tell us they want: evidence of real change, told in ways that resonate.

2. A New Three-Tier Reporting Framework

SORP 2026 introduces three reporting tiers based on income:

Tier 1: Charities with income up to £500,000

Tier 2: Charities with income between £500,000 and £15 million

Tier 3: Charities with income above £15 million

What this means for education charities: Higher tier organisations face more extensive narrative and disclosure requirements, particularly around impact, ESG, and strategic planning. For Tiers 1 and 2 organisations, charities must provide a short impact report, a summary and policy on reserves, and a basic explanation of governance arrangements. The impact report must demonstrate how funds were used for the benefit of those whom the charity serves.

3. A Renewed Focus on Performance Measures

The SORP now recommends reporting a summary of the measures or indicators used to assess performance, not just financial metrics, but social and environmental indicators where relevant.

What this means for education charities: If you've set targets (beneficiaries reached, schools engaged, qualifications achieved), you'll need to explain what those targets were and whether you met them. But it goes further: you should also explain how you evaluate success, not just whether you succeeded or failed. This transparency about methodology builds funder confidence in your rigour.

For education organisations already working with evaluation partners or using established frameworks, this is an opportunity to showcase that sophistication. For those earlier in their evaluation journey, it's a prompt to start building those capabilities now.

Start Preparing Now

SORP 2026 takes effect for accounting periods beginning on or after 1 January 2026. That sounds like breathing room, but meaningful preparation takes time:

·       Engage team andtrustees; this isn't just for finance and fundraising teams.

·       Confirm tier andrequirements. Have an agreed plan in place to deliver a sound report

·       Review what info you have and any gaps. How can an independent view help?

If you have any questions about our work or would like to discuss how we can support your organisation preparing your reporting, please get in touch.

Sign up to the essential SORP 2026 Briefing Webinar.

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About the author

At ImpactEd Group, we bring extensive experience of working with charities to measure impact, including reporting the beneficiary and societal impact of education programmes and initiatives. Alongside our evaluation expertise, many of our team have worked in the charity sector and have a deep understanding of the practicalities of measuring impact in these settings, from designing measurement systems within education charities to implementing and reporting on impact work.

Inour upcoming webinar on the SORP, we'll explore the key aspects which underpinhigh-quality impact reporting: establishing a clear Theory of Change thatlogically links activities to intended outcomes; using robust, validatedmeasurement tools to capture outcomes credibly; understanding and applyingappropriate levels of evidence; and presenting findings clearly and accessibly,with actionable insights that maximise value for stakeholders.

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