The new Charity Governance Code – what you need to know
13 September, 2017
A new version of the Charity Governance Code has been published, setting out higher standards for governance for charities. This new Code is essential reading for all trustees. It is deliberately aspirational and using it will help trustee boards to review and improve their governance arrangements and practice.
The code proposes higher standards in a number of areas, including recommendations that:
- The ideal board size is between 5 – 12 trustees.
- The maximum term of office for trustees should normally be 9 years.
- Board diversity is important and to promote this all trustee vacancies should be advertised and the board should take part in periodic diversity training.
- Charities should be prudent with resources but also understand that being overcautious and risk averse can in itself be a risk.
- Boards should review their own performance, including that of the chair.
The new code is partly a response to high profile charity fundraising scandals and loss of public confidence in larger charities. It has been produced by a steering group of six national organisations with input from over 200 charities. It replaces the 2010 code and Charity Commission guidance CC10 ‘The Hallmarks of An Effective Charity’ which has been withdrawn. It is not a regulatory or legal requirement for charities to comply with the code but it does represent best practice in charity governance.
There are two versions of the code – one for small charities (defined as having an income of under £1 million) and a version for larger charities. You can download the code here: https://www.charitygovernancecode.org/en
How Voscur can help
Voscur can help you to implement the code in a number of different ways:
- Get your trustees up to speed at our next Being a Good Board Member course on 20 February 2018, 6pm - 8.30pm.
- Attend our training on developing board diversity on 25 January 2018 6 – 8.30pm.
- Book a bespoke ‘good governance’ training session for your board.
- Request an external review of governance or help with developing your board’s strategy.
For more information, give us a call on 0117 909 9949 or email firstname.lastname@example.org.
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