{"id":2893,"date":"2019-03-19T15:24:48","date_gmt":"2019-03-19T15:24:48","guid":{"rendered":"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/?p=2893"},"modified":"2019-09-09T10:42:01","modified_gmt":"2019-09-09T09:42:01","slug":"charity-governance-code","status":"publish","type":"post","link":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/blog\/charity-governance-code\/","title":{"rendered":"The 7 Awesome Principles Of The Charity Governance Code"},"content":{"rendered":"<p><span style=\"font-family: arial, helvetica, sans-serif;\">In recent years, public trust and confidence in charities has hit all-time lows, according to the Charity Commission. Adopting good governance practices, which enable charities to comply with the law, is central to regaining the public\u2019s trust.\u00a0<\/span><span style=\"font-family: arial, helvetica, sans-serif;\">To help charities develop high standards of governance, a Charity Governance Code steering group, observed by the Charity Commission, updated the Charity Governance Code on 13 July 2017.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"> The code is comprised of seven distinct sections. While not a legal or regulatory requirement, the code outlines beneficial principles and recommended practices for good governance.<\/span><\/p>\n<h2><span style=\"font-family: arial, helvetica, sans-serif;\">The Responsibilities of a Trustee<\/span><\/h2>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The revised Charity Governance Code clearly outlines the roles of an organisation\u2019s trustees and their importance, which include the following:<\/span><\/p>\n<ul>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Trustees are committed to their organisation\u2019s cause and have joined its board because they want the charity to succeed in its goals.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Trustees recognise that the organisation\u2019s work is an ongoing process that requires diligent attention and effort.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Trustees understand their roles within the organisation and their legal responsibilities to it. This includes having read the Charity Commission\u2019s guidance, <a href=\"https:\/\/www.gov.uk\/government\/publications\/the-essential-trustee-what-you-need-to-know-cc3\/the-essential-trustee-what-you-need-to-know-what-you-need-to-do\">The Essential Trustee<\/a> and their organisation\u2019s governing document.<\/span><\/li>\n<li><span style=\"font-family: arial, helvetica, sans-serif;\">Trustees are committed to good governance and contributing to their organisation\u2019s continued improvement.<\/span><\/li>\n<\/ul>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone wp-image-2973 size-full\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Volunteer.jpg\" alt=\"Charity governance code\" width=\"600\" height=\"200\" srcset=\"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Volunteer.jpg 600w, https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Volunteer-260x87.jpg 260w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<h1><span style=\"font-family: arial, helvetica, sans-serif;\">The 7 Principles of the Charity Governance Code<\/span><\/h1>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The code is organised according to seven distinct principles, with each principle containing key outcomes as well as recommended practices that differ according to whether a charity is large or small. The seven principles of the revised Charity Governance Code are:<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">1) Organisational Purpose<\/span><\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The organisation&#8217;s board clearly outlines the charity&#8217;s goals and works to ensure that those aims are successfully realised. The key outcomes of this section are as follows:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>1.1)<\/strong> The board has a shared understanding of and commitment to the charity\u2019s purposes and can articulate those clearly.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>1.2)<\/strong> The board can demonstrate that the charity is effective in achieving its charitable purposes and agreed outcomes.<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-2806\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/02\/Vision-2.jpg\" alt=\"\" width=\"600\" height=\"208\" srcset=\"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/02\/Vision-2.jpg 600w, https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/02\/Vision-2-260x90.jpg 260w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">2) Leadership<\/span><\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The organisation has an effective board that provides strategic leadership to ensure that the charity is able to achieve its goals. The key outcomes of this section are as follows:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>2.1)\u00a0<\/strong>The board and its trustees accept the collective responsibility to ensure that the organisation has a clear, relevant set of goals. Each goal has a detailed strategy on how to achieve it.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>2.2)\u00a0<\/strong>The board agrees to the organisation\u2019s vision, values and reputation. In addition, anyone that represents the charity must positively reflect the organisation\u2019s values.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>2.3)\u00a0<\/strong>The board ensures that the organisation\u2019s values are reflected in all of its efforts. The ethos and culture of the charity must be the basis of all its activities.<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\"><img decoding=\"async\" loading=\"lazy\" class=\"alignnone wp-image-2975\" style=\"font-family: Georgia, 'Times New Roman', 'Bitstream Charter', Times, serif; font-size: 16px;\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Leadership-2.jpg\" alt=\"\" width=\"600\" height=\"238\" srcset=\"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Leadership-2.jpg 600w, https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Leadership-2-260x103.jpg 260w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/span><\/h3>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">3<\/span>) Integrity<\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The organisation\u2019s board acts with integrity by adopting values to create a culture that helps achieve the charity\u2019s goals. As the board is accountable for the organisation\u2019s actions and decisions, it understands the importance of maintaining the public\u2019s confidence and trust. The key outcomes of this section are as follows:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>3.1)\u00a0<\/strong>The board always acts in the best interests of the organisation and its beneficiaries. In addition, the board will not be unduly influenced by special interest groups that place personal interests above those of the charity. The board\u2014collectively\u2014is independent in its decision-making.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>3.2)\u00a0<\/strong>The board safeguards and promotes the organisation\u2019s reputation and promotes public confidence.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>3.3)\u00a0<\/strong>Members of the board as well as those representing or employed by the charity act with integrity.<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">4) Decision-making, risk and control<\/span><\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The organisation\u2019s board ensures that its decision-making methods are informed, rigorous and timely. This process must be based upon effective delegation, risk management and control while being routinely monitored. The key outcomes of this section are as follows:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>4.1)\u00a0<\/strong>The board understands that its central focus is on strategy, performance and assurance, rather than on operational matters.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>4.2)\u00a0<\/strong>The board has established an effective decision-making and monitoring framework to help the organisation achieve its charitable goals. In addition, the board is aware of the financial and non-financial risks to the organisation and has practices in place to monitor and manage them.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>4.3)\u00a0<\/strong>The board promotes a balanced culture of managing resources while understanding that being overcautious can curb innovation.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>4.4)\u00a0<\/strong>The board is still responsible for the aspects of its responsibilities that it delegates to committees, staff, volunteers or contractors. This includes any incidents that arise due to oversight.<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">5) Board effectiveness<\/span><\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The organisation\u2019s board works as a cohesive and effective team by using a balance of skills, experience, backgrounds and knowledge to make informed decisions. The key outcomes of this section are as follows:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>5.1)\u00a0<\/strong>The board\u2019s culture, behaviours and processes help it to be effective and resolve challenges and different views.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>5.2)\u00a0<\/strong>All trustees possess the appropriate skills along with knowledge on the charity and enough time to be effective in their roles.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>5.3)\u00a0<\/strong>The chair enables the board to work as an effective team by developing strong working relationships between the members of the board. This includes creating a culture to air and resolve differences.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>5.4)\u00a0<\/strong>The board makes decisions collectively and confidently.<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone wp-image-2977 size-full\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Charity-Board.jpg\" alt=\"Charity governance code\" width=\"600\" height=\"201\" srcset=\"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Charity-Board.jpg 600w, https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/03\/Charity-Board-260x87.jpg 260w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">6) Diversity<\/span><\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The organisation\u2019s board supports an approach to diversity that encourages effectiveness, leadership and decision-making. The key outcomes of this section are as follows:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>6.1)\u00a0<\/strong>The board adheres to the belief that it is more effective if it includes a variety of perspectives, experiences and skills.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>6.2)\u00a0<\/strong>The board ensures that the organisation adheres to the principles of equality and diversity, and goes beyond the legal minimum when appropriate.<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">7) Openness and accountability<\/span><\/h3>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\">The organisation\u2019s board leads the charity by being transparent and accountable in its actions. The key outcomes of this section are as follows:<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>7.1)\u00a0<\/strong>The organisation\u2019s stakeholders agree on its actions and the impact that they have.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>7.2)\u00a0<\/strong>The board ensures that the organisation\u2019s performance and interaction with stakeholders are guided by the values, ethics and culture established by the board. In addition, trustees ensure that the organisation collaborates with stakeholders to promote ethical conduct.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>7.3)\u00a0<\/strong>The organisation takes its responsibility for building public trust and confidence seriously.<\/span><\/p>\n<p><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>7.4)\u00a0<\/strong>The organisation\u2019s beneficiaries and stakeholders view the charity as having legitimacy in representing their interests.<\/span><\/p>\n<h3><span style=\"font-family: arial, helvetica, sans-serif;\">Thorough Guidance Leads to Success<\/span><\/h3>\n<p><em><span style=\"font-family: arial, helvetica, sans-serif;\">The revised Charity Governance Code promises to empower charities and help them achieve their goals. While your organisation is not required to adopt the guidance and best practices outlined in the code, doing so can better prepare you for success.<\/span><\/em><\/p>\n<p><em><span style=\"font-family: arial, helvetica, sans-serif;\">If you would like to review the Charity Governance Code in its entirety, you can find it by clicking <strong><a href=\"https:\/\/www.charitygovernancecode.org\/en\/about-the-code-1\/using-the-code\">here<\/a>.<\/strong><\/span><\/em><\/p>\n<p><em><span style=\"font-family: arial, helvetica, sans-serif;\">For more information about how you can bolster your charity, contact the insurance professionals at <a href=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/who-we-cover\/\"><strong>ThirdSectorProtect<\/strong> <\/a>today on <a href=\"tel:08008778277\"><strong>0800 877 8277<\/strong><\/a> and one of our expert team will be happy to help.\u00a0<\/span><\/em><\/p>\n<p><em><span style=\"font-family: arial, helvetica, sans-serif;\">Fancy reading more? Why not check out these other useful articles?<\/span><\/em><\/p>\n<ul>\n<li><em><span style=\"font-family: arial, helvetica, sans-serif;\"><strong><a href=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/2018\/06\/06\/guide-to-employing-and-insuring-volunteers-2\/\">Guide to employing &amp; insuring volunteers.<\/a><\/strong><\/span><\/em><\/li>\n<li><em><span style=\"font-family: arial, helvetica, sans-serif;\"><strong><a href=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/2018\/05\/02\/how-to-recruit-and-manage-volunteers-in-your-organisation\/\">How to recruit and manage volunteers in your organisation.<\/a><\/strong><\/span><\/em><\/li>\n<li><em><span style=\"font-family: arial, helvetica, sans-serif;\"><strong><a href=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/2018\/06\/05\/if-your-organisation-or-charity-benefits-from-the-assistance-of-volunteers-youll-know-how-gratefully-received-their-help-can-be-giving-up-their-time-and-effort-to-work-for-you-volunteers-c\/\">Volunteering Law- Explained<\/a><\/strong><\/span><\/em><\/li>\n<\/ul>\n<p><em><span style=\"font-family: arial, helvetica, sans-serif;\">For more tips and tricks on all things related to charities, not-for-profits and community groups, follow us on\u00a0<a href=\"https:\/\/www.facebook.com\/ThirdSectorProtect\/\"><strong>Facebook<\/strong><\/a>,\u00a0<a href=\"https:\/\/twitter.com\/ThirdSecProtect\"><strong>Twitter<\/strong><\/a>\u00a0&amp;\u00a0<a href=\"https:\/\/www.linkedin.com\/showcase\/thirdsectorprotect\/\"><strong>LinkedIn<\/strong><\/a>.\u00a0<\/span><\/em><\/p>\n\n\n<table class=\"wp-block-table has-fixed-layout\"><tbody><tr><td><a href=\"https:\/\/www.facebook.com\/ThirdSectorProtect\/\"><img decoding=\"async\" loading=\"lazy\" width=\"120\" height=\"120\" class=\"wp-image-5841\" style=\"width: 80px;\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/02\/Facebook-tsp.png\" alt=\"\"><\/a><\/td><td><a href=\"https:\/\/twitter.com\/ThirdSecProtect\"><img decoding=\"async\" loading=\"lazy\" width=\"120\" height=\"120\" class=\"wp-image-5842\" style=\"width: 80px;\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/02\/twitter-tsp.png\" alt=\"\"><\/a><\/td><td><a href=\"https:\/\/www.linkedin.com\/showcase\/thirdsectorprotect\/\"><img decoding=\"async\" loading=\"lazy\" width=\"120\" height=\"108\" class=\"wp-image-5843\" style=\"width: 80px;\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/02\/LinkedIn-tsp.png\" alt=\"\"><\/a><\/td><td><a href=\"https:\/\/www.youtube.com\/channel\/UCde_Q-wjnOd8RZCb__LzbHQ\/\"><img decoding=\"async\" loading=\"lazy\" width=\"120\" height=\"85\" class=\"wp-image-5844\" style=\"width: 80px;\" src=\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/02\/Youtube-tsp.png\" alt=\"\"><\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table>\n","protected":false},"excerpt":{"rendered":"<p>In recent years, public trust and confidence in charities has hit all-time lows, according to the Charity Commission. Adopting good governance practices, which enable charities to comply with the law, is central to regaining the public\u2019s trust.\u00a0To help charities develop high standards of governance, a Charity Governance Code steering group, observed by the Charity Commission, [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":2501,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[3,112,14],"tags":[146,147,55],"acf":[],"_links":{"self":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts\/2893"}],"collection":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/comments?post=2893"}],"version-history":[{"count":2,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts\/2893\/revisions"}],"predecessor-version":[{"id":6019,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/posts\/2893\/revisions\/6019"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/media\/2501"}],"wp:attachment":[{"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/media?parent=2893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/categories?post=2893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-json\/wp\/v2\/tags?post=2893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}