The Charity Governance Code has recently been revised and continues to be a helpful tool in assisting boards to pursue best practice.
Its contents are the responsibility of an independent steering group of people from organisations: the Association for Charity CEOs (ACEVO), the Association of Chairs, National Council for Voluntary Organisations (NCVO), the Chartered Governance Institute and Wales Council for Voluntary Action (WCVA).
The code sets out universal principles for charities of all sizes and complexities to consider. Complying with the code is not a regulatory requirement, but adoption of the code is encouraged by the Charity Commission for England and Wales. It’s a practical framework designed to assist trustees and charity staff, so they can work together effectively, make better decisions and manage risk in an increasingly challenging landscape. While voluntary, meeting the code’s principles and outcomes assures external stakeholders that a charity is governed to a high standard. Charities that adopt the code should publish a brief statement in their annual report to explain this.
What does the code contain?
The Charity Governance Code sets out eight key universal principles:
- Organisational purpose
- Leadership
- Ethics and culture
- Decision-making
- Managing resources and risks
- Equity
- Diversity and inclusion
- Board effectiveness
These are accompanied by around 40 outcomes that should transpire if the principles are met.
Although the code is designed to be applicable for all charities, some aspects will not be specifically relevant to smaller charitable organisations. The code is deliberately aspirational in many areas in order to demonstrate what areas might require development for growth in the future.
Case studies are also included, alongside useful resources and guidance.
Next year, an interactive, online version of the code will launch, including tailored case studies and resources for a greater variety of charities.
What’s changed?
The last major revision of the code was in 2017. Many fundamental principles remain unchanged. However, the new code encourages more reflection from boards in response to greater external pressures on the sector, particularly with regard to reputation. Charities must meet standards to maintain public trust.
Any alterations have been made as a result of a consultation. Views are invited from charity chairs, trustees and staff, and others committed to the charity sector, including professional advisers.
Please read the new code to see if your charity is meeting its principles and achieving its outcomes…
Need some guidance?
Burton Sweet has a longstanding commitment to charities and civil society organisations, offering practical, professional and passionate support. We want to play our part, so you can deliver effectively for the communities you serve and show the good you do.
We offer advice for charities in all areas of charity governance, including constructive and situation appropriate ways you can use the Charity Governance Code.
