In a rapidly changing political environment, staying connected to the latest thinking and practice across our sector is vital. At ACEVO, we aim to highlight emerging issues that shape how leaders operate. These policy updates provide sector news and insights linked to ACEVO’s organisational priorities, including governance, regulation, chairs/boards and diversity, whilst also highlighting our influencing work and any relevant legislation.
Governance
Charity Governance Code
We were proud to play a part in shaping the refreshed Charity Governance Code, which sets out universal principles of governance for charities to consider and helps to shape a common view of what good looks like. Whilst compliance with the Code is not a regulatory requirement, good governance is integral to how a charity works day-to-day, how it responds to change, how it involves stakeholders and how it sets culture.
For charity leaders, we suggest you take time to reflect honestly on how your board is working; not just whether it meets its legal duties, but whether it truly adds value. It’s important to create the conditions for constructive challenge, diversity of thought and shared purpose. The updated Code provides a framework for continuous improvement, but real change comes from leadership commitment and a willingness to learn, adapt and grow together.
SORP
The new Charities Statement of Recommended Practice (SORP) was published on 31 October. All charities must use the SORP to prepare their accounts unless the trustees have opted to prepare receipts and payments accounts and their charity is a non-company charity which had an income of £250,000 or less in the reporting period.
The SORP gives a framework for accounting and reporting, designed to:
- help charity trustees meet their legal requirement for their accounts to give a true and fair view.
- encourage consistency in charity accounting standards.
- give recommendations for charity annual reporting.
Furthermore, following a public consultation the Department for Culture Media and Sport (DCMS) has announced changes to accounting thresholds. These changes, which come into effect on 30 September 2026 and apply to accounting years that end on or after 30 September 2026, aim to reduce costs and administrative effort for smaller charities.
We encourage all charity leaders to start making amendments immediately, as SORP 2026 will apply to reporting periods starting on or after 1 January 2026. Key changes can be found on gov.uk. Our friends at the Charity Finance Group have highlighted what charities across the sector will need to be aware of before the SORP comes into effect in 2026.
Leadership
ACEVO Pay and Equalities Survey report 2025
The 2025 ACEVO Pay and Equalities Survey Report is now out. Drawing on responses from 703 charity CEOs, it remains the most comprehensive breakdown of the sector’s CEO remuneration packages and leadership experiences. This year’s findings reveal persistent inequalities in pay, diversity, development and wellbeing, alongside the continued dedication and commitment that define charity leadership.
The report makes clear that if we want charities to remain strong, effective and transformative, we must do better at supporting those who lead them.
We are also hosting a free webinar – Charity CEO salaries – on 24 November 2025.
Legislation
Autumn budget
The Civil Society Group (CSG), which ACEVO is a part of, has made its submission to government ahead of the Autumn Budget on Wednesday 26 November
The ‘asks’ include:
- Support for safe, proportionate AI adoption in the sector, including engagement from government with the Charity AI Task Force
- Creation of a new fund to tackle the digital divide among smaller charities, supporting infrastructure and skills development
- Sustainable local government funding to enable local authorities and charities to deliver preventative services and meet rising demand
- Modernisation of Gift Aid and preservation of higher rate relief to unlock more charitable giving
- Promoting philanthropy to boost contributions from business.
The budget submission follows the launch of the Civil Society Covenant, which recognised the sector’s essential role in building resilient communities and forming the ‘backbone of our society’.
English Devolution and Community Empowerment Bill
The government’s landmark devolution bill is now before Parliament. Once enacted, the English Devolution and Community Empowerment Bill will reshape how local authorities operate and engage with communities, with implications for charities. The legislation follows last year’s white paper and signals a new era of local decision-making. For further analysis, the House of Commons Library has published a detailed research briefing and DSC has published a helpful blog on the opportunities and challenges for charities.
Regulation
A new Code of Fundraising Practice
As of 1 November 2025, the updated Code of Fundraising Practice has come into effect following a two-year review. The revised code is shorter, clearer and better signposted to legal obligations and external guidance, making it easier to use in practice. Fundraising organisations should review the new code, alongside supporting guidance to ensure compliance ahead of the deadline.
Charity leaders should ensure that fundraising practice reflects not only the updated Code but also your charity’s values, culture and commitment to transparency. This is an opportunity to strengthen systems, clarify responsibilities and reinforce public trust in how funds are raised and used.
Diversity
The Directory of Social Change (DSC) has published a handbook offering advice to charities on how to respond to incidents of racism and xenophobia. Charities Against Hate sets out practical actions that organisations can take “to ensure their safety and continued operation, to reevaluate strategic planning and to join in solidarity with others to push back against racism and other bigotry and discrimination”. This comes after more than 150 charity representatives signed a letter to the Prime Minister last month, warning that charity workers are increasingly facing abuse through “far-right activity”.
Home Truths 2
Home Truths 2 is referenced on the penultimate page of Charities Against Hate. Please view the latest resources, which include the Race Equity Series, the anti-racism companion journal, and the latest reflection video from governance and EDI specialist Frances Brown.
As these updates demonstrate, the external environment for leaders and their organisations is rapidly changing. We will continue to share insights, resources and reflections to help leaders navigate changes with confidence. And we also want to hear from you! How are these changes affecting your organisation? Share your experiences with us at policy@acevo.org.uk.