The latest version of the Charity Governance Code was published in July with different versions for large and small charities (with a typical threshold suggested of £1m of income for large charities). It is also suggested that the code can be applied to other not-for-profit organisations delivering a public or community benefit.
Application of the code remains voluntary, but is deemed best practice within the sector and, generally, charities are expected to follow its principles. The Charity Commission is supportive of the code and does direct people to it within its own guidance.
The new Charity Governance code has seven key areas:
- Organisational purpose
- Leadership
- Integrity
- Decision-making, risk and control
- Board effectiveness
- Diversity
- Openness and accountability
The code has been developed by a steering committee comprising the following sector bodies: The Association of Chairs, ACEVO, ICSA, The Governance Institute, NCVO, the Small Charities Coalition and the Wales Council for Voluntary Action.
Andrew Roberts is a member of Menzies NFP sector advisor team. To discuss the implications of the new Charity Governance Code, contact him by phone on 01372 226308 or via email at aroberts@menzies.co.uk