A strong responsible investment framework for charities balances mission, risk and return. It goes beyond simple exclusions, using Environmental, Social and Governance (ESG) integration, stewardship and clear prioritisation to align investments with purpose. The most effective approaches are evidence-based, proportionate and transparent, helping trustees demonstrate progress while maintaining long-term financial outcomes.
Article last updated 1 June 2026.
Updates to the Charities Statement of Recommended Practice (SORP) are expected to place greater emphasis on transparency, consistency and narrative reporting.
While the detail will evolve, the direction of travel is clear: trustees will need to demonstrate stronger oversight and clearer articulation of how investments support their charity’s objectives.
For many, this is less about wholesale change - and more about being better prepared.
Here are seven practical steps to help.
1. Understand what’s changing (at a high level)
You don’t need to be a technical expert, but trustees should have a broad understanding of:
- New or enhanced disclosure requirements
- Expectations around narrative reporting
- How investments are presented in the annual report
You can follow updates via the Charity Commission for England and Wales and sector bodies such as Charity Finance Group.
2. Engage early with your advisers
Your auditors, investment managers and advisers will be working through the detail.
Engaging early helps you:
- Anticipate changes
- Avoid last-minute pressure
- Ensure consistency across reporting
For broader sector interpretation, guidance from the Chartered Institute of Public Finance and Accountancy is often helpful.
3. Review how your investments are currently reported
Take a step back and assess:
- How clear your current disclosures are
- Whether they reflect your strategy accurately
- If a non-specialist reader would understand them
SORP is increasingly focused on clarity, not just compliance.
4. Consider your responsible investment disclosures
There is growing expectation that charities explain:
- How Environmental, Social and Governance (ESG) factors or ethical considerations are applied
- How this links to the charity’s mission
- What actions have been taken (e.g. stewardship, engagement)
Useful frameworks can be found via UK Sustainable Investment and Finance Association.
5. Align your investment reporting with your wider narrative
Your investment section should not sit in isolation.
It should connect clearly to:
- Your charity’s purpose
- Financial sustainability
- Long-term strategy
This joined-up approach is likely to become more important under the new SORP.
6. Check your data and systems
Stronger reporting often requires better data.
Consider:
- Whether you can easily access relevant investment information
- If reporting is consistent across providers
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Whether additional data (e.g. ESG metrics) may be required
7. Build SORP into your governance cycle
Finally, make SORP part of your regular review process.
This could include:
- Annual policy reviews
- Investment committee discussions
- Trustee training sessions
Training resources from the National Council for Voluntary Organisations can support trustee understanding.
Final thoughts
The new SORP requirements should be seen as an opportunity - not just an obligation.
Stronger, clearer reporting can enhance transparency, improve decision-making, and demonstrate good stewardship to stakeholders.
Getting the balance right between income and growth is central to effective charity investing.
By taking a long-term, total return approach, trustees can better support both current beneficiaries and future generations.
Trustees will need to demonstrate stronger oversight and clearly articulate how investments support their charity's objectives
