Search

Governance

Effective governance is crucial for charities to maintain public trust, ensure transparency, and uphold ethical practices. Whether you are a charity trustee or staff member, understanding the principles of good governance will help you make informed decisions to ensure the success of your organisation.

Read about

01. The fundamentals of charity governance

Governance is the system by which organisations are directed and controlled. It encompasses the structures, processes, and practices that enable effective decision-making, oversight, and accountability.

The Charity Governance Code outlines the recommended practice for good governance. Trustees should meet each area of the code or provide an explanation what is being done or why it is not applicable. The seven core principles of the Charity Governance Code are:

  • Organisational purpose
  • Leadership
  • Integrity
  • Decision-making, risk and control
  • Board effectiveness
  • Equality, diversity and inclusion
  • Openness and accountability

02. Ethical fundraising: maintaining trust

Fundraising is vital for charitable organisations to sustain their important work and create positive change. However, fundraising activities must be conducted with complete integrity and transparency. The Fundraising Regulator Code of Practice set the standards expected of all charitable fundraising organisations across the UK.

03. The role of trustees and board members

Trustees and board members play an essential role in upholding good governance within charities. They are responsible for setting the strategic direction, overseeing financial management, ensuring compliance with relevant laws and regulations, and establishing robust policies and procedures.

04. Managing risks and fraud

The identification and management of risk is one of the board’s responsibilities. Risks are not just financial risks, but also include risks associated with loss of key staff and volunteers, reputation, or health and safety. Although parts may be delegated to operational staff or volunteers, the board remains ultimately responsible for risk management.

05. Governance and risk resources

There are some great online resources to help you make sure you have the correct charity governance, fundraising and risk management practices in place. We have collated guidance from the industry-leads on governance and risk management:
Industry bodies advising on governance

Risk Management

 

Insurance

NCVO members can access its Risk Register Template. Use this template as a starting point for your own risk register and adapt it for your organisation.

Every charity and not-for-profit is susceptible to fraud and cybercrime. Charities need to be aware of the risks and take steps to keep their money, people and data safe. Additional resources on preventing fraud and cybercrime can be found on the Prevent Charity Fraud website, Fraud Advisory Panel, and NCSC Cyber Security Small Charity Guide.

Need further help with your governance?

Complete the Support request form to get one-to-one tailored advice.

Share this Page

Share

Facebook
LinkedIn
Email
Print