Charity Updates You Cannot Ignore in 2026

The latest sector changes, what you need to focus on now, and how to stay supported locally

Charities and CICs in England and Wales are operating in a tough climate. The Charity Commission’s Charity Sector Risk Assessment 2025 points to two big pressure points: finances are getting tighter, and weaker governance can quickly damage public trust.

There are also some practical changes to be aware of right now, as of January 2026. If your charity prepares accruals accounts, SORP 2026 applies for accounting periods starting on or after 1st of January 2026, with updated expectations around what you report and how you explain it in the trustees’ annual report. Alongside that, the Financial Reporting Council’s amendments to FRS 102 are effective for accounting periods beginning on or after 1st of January 2026, which matters for many charitable companies and CICs using FRS 102.

Some changes are in force already and affect many CICs and charitable companies. Companies House identity verification became a legal requirement from 18th of November 2025, with a transition period and “due dates” shown on the Companies House register. If you are a director or PSC, or you help run a CIC or are registered as a charitable company (for example, “private company limited by guarantee”); this is one to look into with your Board. Companies House are phasing this in over 12 months and they have some helpful tips here.

For registered charities, the Charities Act 2022 changes on ex gratia (moral) payments took effect from 27th of November 2025, including when Commission authority is needed and when small payments can be made without it. 

If you fundraise, the Fundraising Regulator’s updated Code of Fundraising Practice took effect on 1st of November 2025, and trustees should be confident that fundraising methods, suppliers and agreements line up with it.

There is also a change coming later that is worth building into your forward planning. The government has set out higher financial reporting thresholds for charities in England and Wales from 30th of September 2026, including independent examination and receipts and payments limits. This does not change what you must do today, but it can affect how you plan governance, finance processes and support needs across the next year.

What this means day to day is clearer focus on resilience and good basics. Strong budgeting and cashflow forecasting, realistic reserves planning, and early conversations about sustainability all help boards avoid being pushed into rushed decisions. On governance, it helps to keep roles clear, record decisions properly, review key risks regularly, and make sure fundraising, safeguarding, fraud and cyber risks have named leads and simple controls.

We can help you stay on top of this in a practical way. Sign up to our newsletter to get updates on changes like SORP and wider reporting requirements, plus local funding and support. Join our Involve forum for shared learning with other local VCSE organisations, including trustee and leadership conversations, peer support, and networking. Follow us on social media for timely reminders, training dates, and opportunities to connect locally.