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A look at the major risks impacting charities in 2026 and guidance for brokers.
Published on 2 February, 2026
Brokers will need to help charities in the UK to navigate an increasingly complex risk landscape in 2026. Economic pressures, evolving regulations, and societal changes are converging to test the resilience of not-for-profits and charitable organisations.
In another year set to put the third sector’s remarkable resilience to the test, what are the key risks brokers can support charities with?
1. Financial pressure meets falling donations
Charities will continue to balance a trend of falling donations against higher operating costs.
A new report from the Charities Aid Foundation found that the proportion of people donating to charity has fallen to only 50%, down from 61% in 2016. Affordability is a key issue with the public, with 44% of those who haven’t donated for charity in the last year saying it was because they couldn’t afford to do so.
This comes as analysis from the Charity Commission for England and Wales points to a growing number of charities reporting expenditure exceeding income: 42.6% did so in 2023, up from 28.3% in 2022.
Meeting a big, unexpected cost could present a tipping point for many charities, which is why having the correct level of cover in place is so vital.
2. Rising demand for services
Hand-in-hand with funding pressures is a surge in demand for many charity services.
The Charity Commission found that 9% of the public received food, medical, and financial support from charitable organisations, compared to 3% five years prior. Charities will need to balance growing community needs against stretched resources in 2026.
Put simply, charities need to help more people with less money.
3. Cyber threats: rising, yet underinsured
The Government’s latest Cyber Security Breaches Survey shows around a third (32%) of UK charities suffered a breach or attack in the past year. For those with income over £500,000, that figure jumps to 66%. With AI creating new opportunities for phishing and fraudulent activity for criminals, there’s few signs of cyberattacks slowing down.
The National Cyber Security Centre report describes charities as “attractive targets” for cyber criminals. Yet official statistics show only a third of UK charities currently have cyber insurance.
Specialist cyber insurance policies offer policyholders a combination of incident management and access to legal and PR experts, as well as cover for costs such as those caused by business interruption or data issues.
Read our article on how to help charities prepare cyber defences
New rules to comply with
The regulatory landscape for UK charities is evolving quickly, with three major changes coming into focus for 2026:
- The Code of Fundraising Practice 2025 introduces simplified, principle-based standards for all charitable fundraising. Charities must ensure staff and volunteers understand the standards, update internal policies accordingly, and maintain clear oversight of third-party fundraisers. Failure to comply could lead to reputational damage, public complaints, or investigation by the Fundraising Regulator.
- Martyn’s Law (Terrorism Protection of Premises Bill), passed in 2025 and expected to roll out over the next two years, will require venues and event organisers - including charities - to carry out terrorism risk assessments and implement counter-terror procedures. Read our full Martyn's Law article.
- Charity SORP 2026 (Statement of Recommended Practice) is expected to bring new requirements around environmental reporting, governance disclosures, and transparency of income. Charities should prepare for greater scrutiny from both regulators and the public on how they demonstrate impact and accountability.
5. Volunteer liabilities
Recruitment and retention are proving tough. Formal volunteering in England has declined markedly over the past decade: the share of adults volunteering monthly fell from 27% in 2013/14 to just 16% in 2023/24 according to NCVO.
Despite a greater pressure to fill positions and to do more with less, charities will need to maintain vigilant background checks, clear policies, and regular training to ensure everyone interacts safely with each other and with beneficiaries.
Volunteer-related liabilities are often overlooked. Volunteers can create liability risks in a similar way to employees, even without contractual protections. Including volunteers under the employer’s liability section of a policy ensures they and the charity are protected, but additional coverage should be considered if volunteers offer care, support, or advice to third parties as part of their role.
6. Limit your clients' risk exposure with Charities Combined
Our Charities Combined solution is available to eTrade on Acturis today. Specially designed for small and mid-sized charities and community groups with up to £2m turnover, it offers a flexible solution that reflects the real operational risks faced by not-for-profit. Coverage options include cyber and data risks, liabilities, and protection of assets.
Discover quick quotes, digital underwriters, and expert support from our charity specialists:
