It’s been a significant year for charity governance, finance and compliance, and our colleagues across the UHY Hacker Young network have pulled together their expertise into the tenth annual Charity and Not-for-Profit Sector Outlook. Here’s a flavour of what’s covered.
A new era of impact and sustainability reporting
The finalised Charities SORP 2026 introduces a three-tier reporting framework and a much stronger emphasis on charities demonstrating not just what they do, but the difference it makes. Harriet Hodgson-Grove (Partner, London) explains how trustees can move from simply reporting outputs to telling a clear, evidence-based story of outcomes and impact, and what this means for charities of every size.
With significant leases now coming onto the balance sheet under SORP 2026, Tracey Moore (Head of Charity and NFP, Sittingbourne) sets out why dilapidations provisions deserve fresh attention, and the practical steps charities should take whether they have an existing lease, an existing provision, or a new lease on the horizon.
Don’t overlook dilapidations
Resilience beyond survival
Drawing on his experience across the sector, Dave Allum (Partner, Nottingham) reflects on what genuine resilience looks like for charities navigating cost pressures, governance challenges and the human realities of leadership and burnout, with lessons from the hospice sector’s evolving operating models.
Making finance easier
For charities with lean finance teams, Harry Howley (Partner, York) explores how outsourced or fractional finance support can strengthen controls, improve forecasting and free up trustees to focus on strategy rather than reacting to uncertainty.
AI and charity governance
Guest contributor Ellis Pugh (Solicitor, Shakespeare Martineau) tackles the growing issue of “shadow AI” in charities, the legal duties trustees can’t delegate away, and practical steps for building an AI policy that satisfies the Charity Commission’s expectations.
Charity tax compliance changes
James Kemp (Corporate Tax Assistant, Sittingbourne) outlines the most significant charity tax reforms in over a decade, taking effect from April 2026, covering tainted donations, approved investments and the treatment of legacy income.
Ten VAT checks every charity should make
Sean Glancy (VAT Partner, London) and Lisa Burnside (VAT Director, London) share an essential VAT health-check, including real case studies where reviewing recovery methods and reliefs delivered six and seven-figure savings for charity clients.
Fraud and cyber threats
Zaynab Aswat (Manager, London) and Xiaoxia Li (Manager, London) look at how charities can strengthen their defences against increasingly sophisticated fraud and cybercrime, and the role trustees and auditors play in spotting the warning signs.
Audit or independent examination?
With audit thresholds rising from October 2026, Grace Pay (Associate Director, Abingdon) examines when an audit still adds value beyond compliance, and when an independent examination remains the right choice.
Plus, conversations with sector leaders
The Outlook also features interviews with Dr Nik Kotecha OBE DL of the Randal Foundation and Emma Woods-Bolger, CEO of the Blue Light Card Foundation, sharing real-world perspectives on giving with purpose and supporting the emergency services community.
Download the full guide
This is just a snapshot of the issues covered in the 2026/27 Charity and NFP Sector Outlook. To explore the full detail, practical checklists and case studies, download your copy of the guide [here].
With thanks to all the authors and contributors named above for sharing their expertise.
Shared with permission from the UHY Hacker Young network.
The original article can be found here https://www.uhy-uk.com/insights/charity-and-nfp-sector-outlook-202627