December. The last month of the year, and a time (and opportunity) for us to look back at 2025. To review and reflect, and slow down, maybe, just a little.
2025, as always, has been a busy year for the charity sector. From changes in accounting standards, updates to governance information, and a year that has seen the Charity Commission impose a considerable number of fines, penalties, and notices to charities, 2025 has been fast paced.
However, when we step back and reflect on the past 12 months, we see just how resilient charities have become. How digital adoption has supported charity strategies and growth. How charities have successfully diversified their income streams, and, above all, how, as a sector, we have come together to collaborate on projects, funding, and more.
As we head into the new year now is the time to reflect on our successes, learn from the challenges, and build robust strategies to help us navigate our way through 2026.
What does your success look like?
The word “success” can mean many different things to different people.
For example, as a Trustee, is success being in a position to grow the charity? For charity managers, is success achieving goals and objectives? For volunteers, is success a grateful “thank you”?
Whatever success means to you, it’s important that we look back and celebrate the “wins”. To reflect and take stock of the success your charity has had throughout 2025.
What has made you proud to do the job you do?
Review your charity success stories and share these with your team. Communicate these to your trustees, donors, and community.
It is our success stories that show our growth and also help us to continue to grow.
Importance of reflection
As a charity manager, you may not feel like you get the opportunity to sit back and reflect, as it is one campaign after another, or firefighting from one day to the next. However, reflecting on the past year as a whole can be essential.
Essential, as only by reflecting on your experiences of 2025, what went well, what you would do again, and most importantly what challenges you faced and what you would do differently, can we learn and build.
We need to build plans for 2026 and work strategically to navigate the changes that are to come for the sector. Analysing strategy, capabilities, opportunities, and challenges to allow you to see what resources and support you will need moving forward.
Make sure to check out the Charity Insights report for more detail and information on what charity leaders really think and have reflected on over the past year, and what they predict for the future.
Looking to 2026
So what has 2026 got in store for the charity sector, and how can charities use this to their advantage?
Updates to SORP will come into effect – what is being reported as the new era of charity reporting, the statement of recommended practice will include changes on income and lease arrangements, charity reporting and examination requirements based on charity size, changes to information included in annual reports relating to financial reserves, social investments, and changes to reporting requirements surrounding provisions and contingencies. (More detailed information can be found HERE).
New Independent Examination and Audit Thresholds come into effect. Changes to thresholds for when accounts are required to be independently examined will change in 2026 based on charity income. Thresholds for examinations to take place by a professional independent examiner will also change, along with thresholds for when non-company charities can choose to produce receipts and payment accounts, when charities must have their accounts audited, and when group accounts must be prepared and audited. You can find further information and threshold details here.
In Scotland, independent examination and audit requirements based on charity turnover and thresholds will also change for the first time since 2006. Please find updates on changes to Scottish law here.
AI and digital: AI is going nowhere, and we need to use these digital advancements to our advantage. However, a word of caution, charities must up their security surrounding cybercrime.
Rising costs remain a major concern and an area that charity managers, in particular, will need to remain acutely aware of in 2026. Is there an opportunity to share office space? Move energy suppliers?
Look to build strong yet flexible relationships with local businesses, increasing corporate support to help you build unrestricted funds.
Build cross-sector collaboration. Working with others who share similar visions, where communities align, funding can be matched, and grant applications strengthened.
Increase donor retention – donor retention is increasing, and charities are working hard to keep donors, as this is seen as more cost-effective than attracting new donors. The focus should be on investing in relationships, offering flexible ways to give, and understanding your audience.
Diversification – continually looking at varying income streams and tapping into new income channels can and will help charities to build resilience.
Reflecting on charity success
The charity sector should be incredibly proud of the resilience and growth they have achieved throughout 2025. Now taking this time to reflect on their successes and grow and develop strategies for 2026 that build on this and more.
Going forward charity managers must look to build sustainable funding, use digital tools and advances to support time and resources, and build strong relationships to grow your community.
For trustees, remember to keep your charity’s purpose at the forefront of all decision-making and share your success whenever possible.
If you need a little reminder about how wonderful the charity sector is, revisit volunteers` week and read the great work and stories from real people and charities. UK Charities Week is also taking place from the 1st to the 5th of December, giving a shout out to all UK charities and shining the light on fundraising opportunities and giving.
2026 is set to be a busy year for charity managers and trustees, let’s take this time to reflect on the wins and use our successes to move forward.
