Charity governance is an imperative. Failures of charity governance could lead to a loss of public trust, confidence and could ultimately lead to the forced closure of an organisation.

But what are the top tips for good governance? Let’s read what Geoffrey Hand has to say on the subject. Geoffrey is a charity governance consultant, offering support and training. 

Your charity’s governing document matters. 

Your governing document is both your charity’s Bible and its Highway Code. If your charity is doing something different, your charity trustees can be way off track before realising they have set a foot wrong. Check it out regularly, at least once a year, and stay legal 

 Adopt the Charity Trustee Governance code.  

Trustees or Directors have specific responsibilities which they must undertake according to the organisation’s constitution and the relevant legislation. Adopting the Charity Governance Code helps you to practice Good Governance. 

Ensure Charity Trustee Diversity 

 Diversity is not just about race, ethnicity, gender and sexual orientation, he states. Every charity trust board must have its Mr and Ms Grumpy to challenge the common ground and stimulate real debate. 

Read more: Getting on Board produce a practical guide: Diversify your Charity’s Board 

Insist on fixed trustees’ terms of office. 

It’s your charity that matters, not a charity trustee’s feelings. A three-year term as a charity trustee, re-electable twice (nine years in all) is plenty. Less for the charity chair. Keep up the charity’s tempo with three years only, no repeats and no exceptions. 

Adopt trustee appraisals.  

Appraisals are an opportunity for your charity trustees, including your chair, to receive peer-to-peer feedback, to reflect on your successes and failures, to identify your training needs, and to detect any potential troubles ahead. Include your charity staff.  

Read more: NCVO’s guide to conducting individual trustee performance reviews. 

A dynamic charity strategy 

Charities go forwards or backwards, they never stand still. Avoid charity stagnation by having a rolling three-year charity strategy, a yearly charity action plan and a month by month charity strategy step-review. 

 User friendly charity financial information 

Insists that your Charity’s finances are presented in a format that you and your fellow trustees understand, a budget that reflects your charity’s strategy and reports that map your Charity’s progress. Test your treasurer’s mettle (and your own understanding) by asking how charities accounts differ from commercial accounts. 

Beware the charity thief.  

Believe me, even today there are still charities banking online with no dual approval and two signature charities with pre-signed blank cheques. Even the most respected charity trustees and indeed charity staff, are not immune to personal financial misfortune. And a few short steps to charity dishonesty. Charity fraud happens. 

Read more: The Charity Commission’s Internal Finance Controls Checklist makes a great starting point to see how you are doing. They have also produced guidance on protecting your charity from fraud. 

Accurate charity records 

Transparency and accountability are today’s charity watchwords. Ensure your charity trustees meetings are accurately minuted. Create your own charity compliance checklist and charity governance calendar – two hallmarks of a well-run charity. 

5 yearly charity governance reviews 

Many changes occur in a charity over five years, some good and some not so good. Policies, practices and even governing documents become out of date; Roles and relationships of staff and trustees evolve differently. An external charity governance review brings objectivity, highlights areas of concern and identify strengths and opportunities to shape the charity for the future.

Further Guidance:

• Introduction to Good Governance and the Governance Code video.