Good Governance - by Lizzy Turek

Good Governance

NCVO emphasise that good governance is necessary for charities to be effective and accountable (Governance — NCVO Knowhow). So what does this mean? Usually a charity is governed by a trustee board that takes overall responsibility for its work.

Effective governance involves:

• Securing the long term direction of the charity
• Ensuring that policies and activities achieve main objectives
• Ensuring the charity is run in a way that is legal, responsible and effective
• Being accountable to those with an interest or 'stake' in the charity.

Good governance needs to run throughout the organisation. The trustee board is responsible for establishing good governance, but it requires a range of people to play their roles well – staff and the chief executive in particular, volunteers, advisors and others with an interest or stake in the organisation (stakeholders).

So what practical steps does this require?

The constitution of the governing body will set out the roles and responsibilities of members and staff, but good systems and processes are needed. This should enable any problems to be identified and resolved at an early stage.

All charities need to comply with relevant legislation and regulations. This is essential to protect the reputation and integrity of the charity. Achieving the charity’s aims will require good policies, strategies, detailed planning and monitoring arrangements to account for performance.

Key priorities and challenges for the organisation and its board will depend on its stage of development. The Charity Commission’s publication  Milestones: Managing key events in the life of a charity.

Charity Governance Code 

The Charity Governance Code is a practical tool to help charities and their trustees develop high standards of governance and can be accessed at www.charitygovernancecode.org. It sets out 7 principles with detailed recommendations for good practice and is a useful tool for continuous improvement. The main recommendations are:

• Organisational purpose

The Board must be clear about the charity’s aims to ensure they are being delivered effectively with the resources available.

• Leadership

The Board must provide strategic leadership and set the tone for values and reputation.

• Integrity

The Board must reflect the charities ethics and values in everything it does and demonstrate the highest level of personal integrity and conduct.

• Decision making, risk and control

Processes must be rigorous and timely with effective delegation, controls, risk assessment and reporting arrangements to monitor performance.

• Board effectiveness

The Board must work as an effective team using an appropriate balance of skills, experience and knowledge to make informed decisions and establish a positive culture.

• Equality Diversity and inclusion

The Board needs a clear and effective approach for supporting equality and diversity throughout the organisation and its own practice. Board diversity is important to create more balanced decision making and reflect the communities the charity serves.

• Openness and accountability

The Board must set a good example by being transparent and accountable in its work and demonstrate willingness to learn from mistakes and improved performance.

How can we help?

As part of Thewlis Graham Associates services, we offer Executive Search to provide access to a vast pool of talent to attract and select a diverse range of Board members. We are able to work with clients to offer onboarding and training for new trustees and provide updates on good practice in governance.

Lizzy Turek

Client Research Associate