Our Top 10 takeways for Trustees and Advisers
This year’s ICAEW Charity Conference was packed with insight, discussion and practical updates for Trustees, finance teams and advisors. With regulatory developments, governance changes and continued financial pressures, the sector is facing an evolving landscape that demands clarity, resilience and forward planning. Below we share our top ten takeaways from the 2026 event — along with observations on the growing number of new charity registrations and the future of Trustee identity verification.
- Anticipated regulatory changes on the horizon
The Charity Commission is reviewing its tiered reporting structure to ensure reporting requirements remain proportionate for smaller organisations. The regulator is also exploring the introduction of Trustee identity verification, similar to reforms implemented at Companies House. While unlikely within the next 12 months, this could significantly ease the administrative burden around identity checks — particularly when opening new bank accounts, a challenge many charities face daily.
- New Charity Sector Risk Assessment released
The Charity Commission has published an updated sector-wide risk assessment to support stronger governance and more informed decision making. The assessment highlights two key risks affecting the sector:
- Financial resilience
- Risks to public benefit
Trustees should ensure these are reflected within their governance and risk frameworks, with regular discussion at board level.
- Fraud and cyber risk remain pressing concerns
Fraud and cybercrime continue to pose significant risks across the charity landscape, yet only 49% of charities have a cyber response plan in place. With attacks increasing in frequency and sophistication, charities should assess their exposure, strengthen internal controls and ensure robust response processes are clearly documented and tested.
- Governance frameworks strengthened with new guidance
Three major governance updates were issued:
- The 2025 Charity Governance Code
- The revised Code of Fundraising Practice (effective 1 November 2025)
- Charity Investment Governance Principles
These updates reinforce the sector’s move towards improved transparency, accountability and stronger oversight.
- A refreshed and more accessible Charity Governance Code
The new Code retains its eight key principles but includes refinements and clearer expectations. Notably, the previous Diversity principle has been broadened to Equality, diversity and inclusion, reflecting evolving best practice. “When you know it’s working” indicators now help Trustees assess whether governance arrangements are operating effectively in practice.
- Financial sustainability under growing strain
Many charities are facing rising operational costs alongside static or declining income. As a result, financial sustainability is increasingly being prioritised over growth and impact. The conference emphasised the importance of reserves policies, long-term financial planning and scenario modelling to ensure organisations remain resilient.
- AI adoption expands – but human oversight remains key
AI usage has now reached 76% of charities, reflecting a rapid shift towards digital tools to increase efficiency and support decision making. However, the message was clear: AI must support professional judgement, not replace it. Human oversight is essential to ensure accuracy, ethical use and alignment with organisational values.
- Travel and subsistence policies under HMRC scrutiny
With hybrid working now common, HMRC continues to prioritise reviews of travel and subsistence expenses. Many policies written pre‑2020 may no longer reflect current working patterns and could expose charities to avoidable tax risks. Policies should be reviewed and updated to ensure they remain compliant.
- New SORP now live for periods beginning on or after 1 January 2026
The updated SORP is now in effect, bringing important changes to:
- Income recognition, particularly distinguishing exchange from non‑exchange transactions
- Lease accounting, including concessions, peppercorn leases and below‑market arrangements
- Trustees’ report disclosures, with Tier 2 and Tier 3 charities expected to provide more detailed impact reporting
Early preparation will help ensure a smooth transition at year end. For more information check out our SORP overview.
- Gift Aid and fiscal reliefs remain vital sources of support
The conference closed with remarks from the Minister for Sport, Tourism and Civil Society, who highlighted encouraging figures:
- £1.7 billion in Gift Aid was claimed in 2024-25
- £2.75 billion in non-domestic rates relief was accessed
These are both up 7% on the previous year and are a timely reminder to ensure Gift Aid is claimed wherever possible. Additionally, DCMS expects the recent threshold changes to save the sector £47 million. For more on this, click here to view our article. A sector experiencing real growth, but with increased scrutiny An additional trend highlighted during the conference was the continued rise in new charity applications. In the year to April 2025, the Charity Commission received 9,836 applications – a 9% increase on the previous year. Sector income has also risen to approximately £100 billion, signalling meaningful growth. However, the Commission has observed an increase in applications where:
- The charitable purpose is unclear, or
- Objectives significantly overlap with existing charities
As a result, the registration process now involves more detailed conversations and questioning than ever before to ensure new charities provide genuine public benefit and avoid unnecessary duplication. Navigating ongoing change With regulatory developments, evolving governance requirements and financial challenges ahead, many charities are assessing how best to prepare for the future. If you would like to discuss any of these points with our Charities team, please get in touch.
