Charities across the UK are facing increasing pressure and this is beginning to trickle into their financial reporting.

Data from the Charity Commission revealed a 51 per cent increase in late account filings, rising from 11,778 in 2022/23 to 17,773 in 2023/24.

Many organisations are finding it harder to balance rising costs and deadlines and are falling behind in their requirements.

Those who are struggling need to know how they can keep on top of their compliance and avoid the risks of filing late.

Why are more charities filing late?

There isn’t a single cause behind this sharp rise in late filings.

It could be a mix of falling donations, rising costs and reduced government funding that have all tightened budgets.

Many charities have responded to these pressures with cost-cutting measures, including reducing staff or relying more heavily on volunteers.

However, charity rules remain detailed and having a reduced team can make it more difficult for your accounts to receive the focus they need.

Smaller organisations in particular have limited internal resources and this can make it difficult to balance day-to-day operations and reporting requirements.

It could even be that charities are delaying filing because they are concerned about how their financial position will be perceived by investors or lenders.

Late filing puts your charity at risk

We know delays are sometimes out of your control and filing deadlines can sneak up before you realise.

However, there are real challenges and damage to your charity that late filing can bring.

Your filing history is publicly available and donors, funders and stakeholders often review it before committing support.

Late accounts can raise concerns around governance and financial management, even if the underlying work of the charity remains strong.

The Charity Commission also monitors late filing closely and repeated delays can trigger increased scrutiny.

The Commission even has the power to investigate or take action against trustees if your late filing becomes a continuous problem.

Can the SORP changes ease the pressure?

The updated Charities Statement of Recommended Practice (SORP) and new tiered system based on income aims to simplify requirements for small charities.

These rules are effective for periods starting on or after 1 January 2026 and introduce a more proportionate approach to reporting.

For example, only organisations with income over £15 million will need to prepare a full cash flow statement and this reduces the reporting burden for many.

These changes are here to make compliance more manageable and should eventually cut the number of late filings across the sector.

How can you avoid late filing?

We understand that external pressures do not disappear overnight, but there are ways charities can stay on top of their finances and manage their reporting obligations.

This includes:

  • Realistic budgeting
  • Regular cash flow forecasting
  • Reviewing your financial position
  • Diversifying income streams
  • Monitoring income and expenditure
  • Investing in financial systems
  • Regular trustee oversight

Who can support you?

Charities do not have to face these challenges alone and put themselves at risk because they are struggling.  

Our expert team can help you prepare and file your accounts on time and provide guidance on how the new SORP reporting requirements can benefit you.

We can also advise on your financial planning, including helping you with cash flow management, budgeting and ensuring your processes stand up to scrutiny.

We’re here to help you get your filings back on track and minimise any impact on your charity and reputation.

If you need further advice or support on filing your charity accounts, get in touch.