Statement of Recommended Practice (SORP)

A Statement of Recommended Practice (SORP) is a guideline created to help organizations, especially charities and not-for-profits, prepare their financial reports. It outlines how financial information should be presented to ensure clarity, consistency, and transparency. By following a SORP, organizations can provide stakeholders with a better understanding of their finances, ensuring they comply with legal requirements and maintain trust with donors and the public. Essentially, it's a best-practice framework that helps organizations communicate their financial status effectively.