SORP Changes: What They Mean for Charity Real Estate

A new year often brings fresh thinking. This one also brings real change.

As of 1 January, the updated Charity SORP is now in place. After months of anticipation, the changes are no longer theoretical. They’re live. And for charities with property interests, they matter.

So, what’s actually changed?

At a high level, the new SORP is about clearer, more honest reporting, especially when it comes to property and long-term commitments.

The key changes for charities with real estate are:

1. Leases are now more visible

Most leases must appear on the balance sheet, showing:

• the value of the space you use
• the future payments you’re committed to

2. Property commitments are harder to ignore

Lease costs aren’t just annual rent lines anymore. They now reflect the full length and cost of the agreement, giving trustees and stakeholders a clearer picture of financial commitments.

3. Reporting is more proportionate

Charities are now grouped into tiers based on income, which affects how much detail is required:

• Smaller charities face lighter reporting
• Larger charities are expected to provide more insight and explanation

Why this matters

These changes don’t just affect accounts, they affect how decisions are made.

You may start to see:

• Changes to how your balance sheet looks
• Different conversations with trustees, funders or lenders
• A need to rethink long-term property commitments

None of this is a cause for concern, as long as it’s understood.

What you should be doing now

This is a good moment to pause and take stock:

• Review your current lease arrangements
• Understand how they’ll now appear in your accounts
• Consider whether your property strategy still supports your mission
• Make sure trustees are comfortable with what’s changed, and why

How TSP can support you

TSP is here to help. Whether you have one building or manage many, we can review your property data, calculate lease liabilities, and ensure you’re ready for the new rules. Get in touch today to see how we can make the transition simple and stress-free for you.

Contact us to get started.