Refreshed Charity Governance Code

The refreshed Charity Governance Code has been well received across the sector. 

There is now a single consolidated Code which sets out universal principles applying to all charities, large and small. Despite its length at 47 pages, the Code is clear, easy to read and practical to apply. 

Compliance with the Code is not mandatory – rather it sits alongside and complements trustees’ legal duties. It is intended as a practical tool, promoting discussion about standards, behaviours and processes that contribute to good governance. The emphasis throughout is on how board behaviours shape governance.

There are eight core governance principles set out in the Code. The foundation principle calls on trustees to take responsibility for understanding their charity, their legal duties and responsibilities, and investing the necessary time and care to do so. The remaining principles build on this. They cover organisational purpose, leadership, ethics and culture, decision making, managing resources and risk, equity, diversity and inclusion and board effectiveness. The Code sets out examples of each principle in operation followed by board behaviours and policies and processes that support it. Each section ends with a note of how compliance with the principle can be demonstrated. 

There will be no surprises for trustees in the list of principles in the Code. The underlying governance objectives will be largely familiar but, against a changing risk landscape, the new Code increases the focus on the impact of board behaviours.