The new Charity Governance Code has been published!

The new Charity Governance Code is here, bringing clearer principles and practical guidance to help trustees reflect on how they lead, make decisions, uphold their charity’s purposes and take accountability. Although not a regulatory requirement, the Code introduces eight principles, including a new Foundation principle that emphasises trustees’ responsibility to understand their charity and duties.

Building on the structure of its predecessor, the new Code sets out seven principles that build on the Foundation principle that trustees take responsibility for, and invest the necessary time and care in, understanding the charity and their responsibilities and duties. Although this was present in the previous Code, we welcome its prominence as a new principle in its own right, along with the articulation of its own behaviours and practices.

Many of the principles are likely to sound familiar, but there are some significant changes:

1. Foundation
2. Organisational purpose
3. Leadership
4. Ethics and culture
5. Decision-making
6. Managing resources and risks
7. Equity, diversity, and inclusion
8. Board effectiveness

We applaud the fact that the Code now sets out clearer expectations of the behaviours, values, and processes that underpin good governance in charities. It includes examples of what good looks like designed as prompts rather than checklists, which are applicable to charities of all sizes. These behaviours and how to live the Code have long formed part of our Moore Kingston Smith governance reviews, so we’re delighted that this is now incorporated into the full Code.

The Code has also been further simplified with just one version going forward (removing the small and large Charity Governance Codes which used to exist). The objective is for the Code to be a universal tool and flexible enough for all charities to benefit from, while recognising that every charity is different.

We understand that smaller or less complex charities may initially feel that adherence to all of the Code’s suggested practices is too difficult or not relevant. However, we strongly encourage all charities to look at the new Code. It’s an excellent reference point for any charity seeking to review its governance and benchmark its specific circumstances against a well-respected set of principles.

You can download the new Code and access supporting resources on the Charity Governance Code’s website.

How can we help?

We provide tailored advice on how to get started and use the new Code in a practical and meaningful way. We also offer external reviews against the Code for charities wishing to draw upon an independent perspective.

Please get in touch if you have any questions or would like to commission a governance review against this new benchmark for the sector