Restoring public faith in charities
According to independent research, public faith in effective charity regulation has dropped from 65% in 2015 to 58% in 2017. Good charity governance is therefore an area under increasing scrutiny. The ‘Charity Governance Code’ (‘the Code’) is an updated version of the previous ‘Code of good governance’ and the product of a steering group of over 200 charities, individuals and groups. The guidance is not mandatory, but the Charity Commission has withdrawn its guidance ‘Hallmarks of an effective charity’ in favour of encouraging charities to use the code.
The Code is a practical tool to help charities and trustees continuously improve and develop high standards of governance. There are two versions of the code aimed at larger and smaller charities. The Code sets out seven principles and recommended practice on what a charity might do to implement the principles. The principles cover:
- organisational purpose;
- decision-making, risk and control;
- board effectiveness;
- diversity; and
- openness and accountability
The Charity Governance Code is available here and we would recommend that all charities review the guidance and work towards implementing its recommendations.
For advice on charity governance contact Elizabeth Irvine.