Navigating Key Changes in the Charity Sector: What Charities Need to Know in 2025

The charity landscape is undergoing significant change, with new regulatory requirements and financial challenges ahead. At SJC Chartered Accountants, we are committed to helping charities adapt and thrive in this evolving environment. Here’s a summary of the key updates affecting the sector:

1. Incomplete Trustee Boards Pose Challenges

Recent data shows that 63% of charities report incomplete trustee boards, leading to issues such as trustee burnout, lack of diversity, and gaps in essential skills like HR and IT. Charities are encouraged to explore recruitment from volunteers, beneficiaries, or use trustee brokerage services.

2. Mass Fundraising Events See Record Participation

Participation in mass fundraising events has exceeded pre-pandemic levels, with a surge in younger and female participants. Running remains the most popular activity, and charities are advised to leverage this increased engagement for fundraising growth.

3. Upcoming Charities SORP Changes

With changes to FRS 102 taking effect from 1 January 2026, charities need to prepare for updates to revenue recognition and lease treatment. Early preparation is key, including consultation with auditors and reviewing FRC resources.

4. Fraud Reimbursement Scheme for Small Charities

The APP fraud reimbursement scheme, introduced in October 2024, mandates that banks reimburse small charities (annual income under £1m) for authorised push payment fraud losses. Raising awareness of this scheme is crucial to protect charities from financial vulnerability.

5. Autumn Budget 2024: Tax Implications for Charities

The 2024 Budget introduced significant tax changes, including increases in Employer National Insurance and Capital Gains Tax rates, as well as the extension of inheritance tax thresholds. Charities must review their financial planning to mitigate potential impacts.

At SJC Chartered Accountants, we provide tailored guidance to help charities navigate these changes and ensure compliance with emerging regulations. Get in touch today to explore how we can support your organisation in achieving its mission.