This is a question that charities frequently ask me about and the answer depends partly on what use you make of your annual accounts and who is the intended audience. SORP 2025 dictates the basic structure of the report and places increasing emphasis on linking the narrative with the financial statements, ensuring the “words and numbers” tell a consistent story.

However, there remains a considerable difference between charities of a similar size and nature as to how detailed their Trustees’ Report is. We have seen relatively small charities produce Trustees’ Reports running to more than 14 pages. Equally, some much larger charities produce comparatively brief reports within their statutory accounts.

In the latter case, this is often because the charity publishes separate impact reports, annual reviews or stakeholder publications which explain their achievements, strategy and future plans in greater detail. In the former case, charities may use the Trustees’ Report itself as their primary communication document, helping funders, beneficiaries and supporters understand the charity’s activities, impact and financial stewardship.

Modern reporting expectations now extend beyond simply describing activities undertaken during the year. Trustees are increasingly expected to explain:

• the charity’s public benefit;
• the impact and outcomes achieved;
• principal risks and how they are managed;
• reserves and financial sustainability;
• governance arrangements and trustee oversight; and
• future plans and strategic priorities.

Trustees should therefore consider the most effective and proportionate way to communicate their story, balancing compliance requirements with the practical need to engage supporters, funders and other stakeholders. A well-written Trustees’ Report should not merely satisfy regulatory requirements — it should help demonstrate the charity’s purpose, effectiveness and long-term sustainability. For some charities, particularly smaller organisations with limited marketing resources, the Trustees’ Report may still act as their principal “sales” document to explain to potential funders and users alike how they have performed in the last year and why they need further support. Trustees of individual charities need to decide the most cost-effective way to tell their story.