As a charity trustee, you play a vital role in ensuring your organisation delivers its charitable objectives. Increasingly, donor’s and supporters are seeking for this to be done with transparency.
At the heart of this responsibility lies good governance. Governance isn’t a single thing, rather it is a framework of principles and practices that inform how the charity is run, how decisions are made and ensures people within the charity are held accountable.
Why Good Governance Matters
- Protects the Charity’s Reputation
Public trust is key for charities – without this funders and supporters may well disengage which can have significant impacts on the ability to operate.
- Ensures Legal and Regulatory Compliance
Trustees are legally responsible for ensuring the charity complies with all relevant laws and regulations. It also will seek to adopt best practice across a range of areas.
- Supports Decision-Making
Governance isn’t just about rules, it’s about leadership. A well-governed board sets clear direction, monitors performance, and adapts to changing circumstances with confidence. Everyone knows their role and how they interface with others. This helps to ensure that the trustees and senior leadership team work well together.
Key Governance Practices for Trustees
- Ensure trustees and the senior leadership understand their duties and the boundaries between governance and management
- Assess the board’s effectiveness and identify any skills gaps to strengthen decision-making
- Maintain a risk register and review it regularly to anticipate and mitigate potential threats
- Review financial reports, budgets, and reserves policies to ensure sound financial health
- Declare and manage conflicts openly to maintain integrity and trust
- Use agendas, minutes, and clear action points to ensure meetings are productive and decisions are well-documented
Good governance is not a box-ticking exercise, it’s the foundation of a well run charity and helps to make it more resilient and charity. Governance comes from the trustees but it is also important to ensure that people at all levels of the charity are on-board with this.