The Charities SORP 2026 applies to accounting periods beginning on or after 1st January 2026. It changes how charities recognise income, account for leases and report their impact, and each of these depends on understanding the contracts behind them. A contract register, a single structured record of every agreement you hold, is the practical way to stay compliant, protect your funding and free up time for your mission.
Introduction
SORP 2026 has increased the importance of clear and accessible information about charity contracts, leases and income-generating agreements.
Although the new framework does not specifically require a contract register, charities preparing accruals accounts may need more detailed information about their agreements, including their value, obligations, payment terms and renewal dates.
A well-managed contract register provides a practical way to bring this information together. It can support financial reporting while giving leaders stronger visibility of future income, committed costs, responsibilities and risk.
This article explains what SORP 2026 means for contract information, how a charity contract register can help and the practical steps organisations can take across their people, processes and systems.
What is SORP 2026?
The Charities Statement of Recommended Practice, commonly known as the Charities SORP, sets out how charities preparing accruals accounts should report their finances in line with FRS 102. It introduces a three-tier reporting framework designed to make requirements more proportionate to the charity’s size.
The framework includes several changes to charity reporting. This article focuses on contract income and record keeping, where clear and well-managed contract information can support both financial reporting and wider organisational control.
The rules determining whether a charity prepares accruals or receipts-and-payments accounts vary according to its jurisdiction, legal structure and income. Charities should confirm which requirements apply with their accountant, auditor, independent examiner or another suitably qualified adviser.
What changes under SORP 2026?
The change most relevant to contract information is the way charities recognise contract income, described in FRS 102 as revenue from contracts with customers.
In this accounting context, “customer” is a technical term. For charities, the other party may be a commissioner, public body, member or organisation purchasing training, research or another service. The article therefore uses the more charity-relevant term “contract income” throughout.
The new approach requires charities to understand what they have agreed to deliver, the value of the arrangement and when each commitment has been fulfilled. It may apply to commissioned services, membership, training, consultancy, research, subscriptions, venue hire and trading activities.
The official Charities SORP guidance advises charities to review current contracts and income streams and consider what record-keeping will help with the preparation of future financial statements.
What is a charity contract register?
A charity contract register is a central record of the organisation’s active agreements and their most important information.
It is more than a folder containing signed documents. A useful register turns the content of those agreements into structured information that leaders, finance teams and contract owners can search, review and report on.
Depending on the organisation, it may include supplier agreements, leases, commissioned service contracts, public-sector contracts, software licences, membership arrangements and funding agreements that create contractual obligations.
A practical register could record:
| The register records | Which helps you |
|---|---|
| The counterparty and the internal contract owner | See who holds the relationship and who is accountable |
| The purpose, type and value of the agreement | Understand what it is for and what it is worth |
| Start, end, renewal and notice dates | Act, renegotiate or exit in good time |
| Payment terms and price-review clauses | Know what you pay and when costs can change |
| Services, outputs and delivery commitments | Support the correct treatment of contract income |
| Key risks and the next review date | Focus attention where it is needed |
| The location of the signed contract | Retrieve evidence quickly for audit and queries |
The right level of detail will vary. A national charity delivering commissioned services across multiple regions may require a more sophisticated register than a smaller organisation with a limited number of agreements.
The aim is to capture enough information to support financial reporting, governance and day-to-day management without creating an unnecessary administrative burden.
Why contract information can become difficult to manage
Bringing this information together is often harder than it sounds. Contract information can be spread across the organisation, sitting with finance, property, procurement, IT, fundraising, service delivery and other teams.
Agreements also change over time. Values may be revised, services extended, responsibilities reassigned and renewal dates updated. When these changes are recorded in separate spreadsheets, inboxes or local folders, it becomes harder to maintain one reliable view.
Effective contract management ultimately depends on clear ownership, consistent processes, accurate data and systems that make important information visible at the right time.
People
A clear owner for every agreement, so nothing falls between teams.
Processes
Renewals and changes captured as routine, not a year-end scramble.
Systems
Information connected and visible at the right time.
Without clear ownership, renewal dates and notice periods can pass unnoticed, and the information must be gathered from scratch each time it is needed, often under year-end pressure.
How a contract register supports SORP 2026
SORP 2026 does not require a contract register, but it raises the importance of having reliable, well-organised information about your contractual arrangements.
In its SORP 2026 guidance, the Office of the Scottish Charity Regulator (OSCR) encourages charities to review their existing agreements, understand what they hold and consider whether they need to keep different records. A central contract register offers a practical way to support this work.
It can help a charity identify relevant agreements, locate supporting documents, record key financial terms and assign clear internal ownership. This gives finance teams and professional advisers a more complete evidence base when assessing the appropriate accounting treatment.
A contract register will not replace professional accounting judgement. Its value lies in making the underlying information easier to find, review and trust. It can also strengthen contract management beyond SORP 2026 by giving leaders greater visibility of renewals, income, expenditure, responsibilities and risk.
The wider value of contract registers for charity leaders
SORP 2026 may prompt the initial review, but stronger contract visibility can support much wider organisational improvement.
1. Better financial visibility
A central register gives finance teams and leaders a clearer view of committed income, expenditure, payment schedules and future changes.
It can highlight agreements that are ending, costs that are increasing and income that may not continue, supporting stronger budgeting, forecasting and cash-flow planning.
2. Stronger governance and accountability
Every agreement should have a clear internal owner who understands its purpose, monitors delivery and acts when a review or decision is required. This reduces the risk of contracts falling between teams and provides continuity when responsibilities change.
3. Better control of renewals and risk
Clear renewal, notice and review dates give teams time to assess performance, renegotiate terms or consider alternatives. Leaders can act earlier because they can see what is coming and where closer attention is needed.
4. Better use of limited resources
Contract visibility can help charities identify duplicated suppliers, unused software licences, missed price reviews and services that no longer provide sufficient value.
Addressing these issues can reduce unnecessary expenditure and free up staff time for higher-priority work.
Five practical steps to improve contract visibility
Improving contract management should begin with the organisation’s requirements rather than a software product:
1. Bring existing agreements together.
Identify contracts held across finance, property, IT, HR, procurement, fundraising and service-delivery teams. Include income, expenditure and lease arrangements.
2. Define what the register should contain.
Agree what the charity considers a contract and which information must be recorded. Keep the initial requirements focused and manageable.
3. Assign ownership and responsibilities.
Give every agreement an accountable owner and decide who will maintain the central record, check its accuracy and report on upcoming decisions.
4. Review and standardise the data.
Confirm that dates, values, terms and owners are accurate. Resolve duplicate records and locate missing documents before moving information into a new tool.
5. Decide how systems will support the process.
Assess whether existing tools can provide the access, workflow, reminders, reporting and controls the charity needs.
The register will only remain useful if teams maintain it. Contract reviews, renewal reporting and ownership checks should become part of normal organisational governance.
Do you need new technology or better use of what you already have?
A dedicated contract-management system may be the right option for some charities. Others may be able to improve visibility using their existing finance system, ERP platform or Microsoft environment.
Tools such as SharePoint, Microsoft Lists, Power Automate and Power BI can support document storage, structured records, notifications and reporting. Their suitability depends on the number and complexity of the charity’s agreements, the teams involved, security requirements and the need to integrate with other systems.
Start with the organisation’s requirements, not the software. A structured review will show whether the best route is to improve existing tools, connect systems more effectively or invest in a dedicated solution.
How Optimum PPS can help
SORP 2026 creates a clear need for reliable contract information, but charities still need to understand how their people, processes and systems will support it.
Optimum PPS can help you:
- Review how contract information is currently managed
- Strengthen ownership, data quality and reporting
- Assess existing finance, ERP and Microsoft tools
- Define requirements and lead an independent technology selection
- Manage implementation, migration, governance and user adoption
Optimum has more than ten years’ experience supporting 27 charities and non-profits across over 100 system and transformation projects. We are independent and impartial, so our recommendations focus on what will work best for your organisation.
Optimum PPS helps charities and not-for-profits improve how their people, processes and systems work together. Whether you are developing a contract register, preparing for finance-system change or reviewing ERP, CRM, HR, payroll, care or case-management systems, our independent consultants can provide the structure, experience and capacity needed to deliver effective change.
FAQs
What is SORP 2026?
SORP 2026 is the current accounting and reporting framework for charities preparing accruals accounts under FRS 102. It applies to accounting periods beginning on or after 1 January 2026 and includes changes to areas such as leases, contract income and trustees’ annual reporting.
Does SORP 2026 require charities to keep a contract register?
SORP 2026 does not specifically require a contract register. In its SORP 2026 guidance, OSCR (the Office of the Scottish Charity Regulator) encourages charities to review their agreements, understand what they hold and consider whether different records are needed. A central register provides a practical way to organise this information and support financial reporting.
How can a contract register support SORP 2026?
A contract register can help a charity identify leases and customer contracts, locate supporting documents and record key dates, values, payment terms and responsibilities. It gives finance teams and professional advisers a more complete evidence base when assessing the relevant accounting treatment.
What should a charity contract register contain?
A contract register should capture the information needed to oversee each agreement. This may include the contract owner, external party, purpose, value, start and end dates, notice period, payment terms, deliverables, lease information, risks and location of the signed document.
Does a charity need new software to manage its contracts?
Not necessarily. Some charities can improve contract management through their existing finance, ERP or Microsoft tools. Others may need a dedicated platform. The right decision should follow a review of contract volumes, processes, data, reporting, access controls and integration needs.
Andrew helps charities and not-for-profits get more from their people, processes and systems. He has extensive experience guiding organisations through digital transformation and business-systems change, working hands-on across requirements, independent system selection and implementation. That end-to-end involvement gives him practical insight into the real challenges charities face when improving their processes, data and technology, and how to deliver change that lasts.