NCVO has recently launched a new Charity Governance Code. This has been produced to provide a clear set of governance standards which charities and their trustees can aspire to and work toward.
There are seven principles which make up the new code. These build on the assumption that a charity is meeting its legal and regulatory responsibilities as a foundation:
There are a range of significant changes to the previous code, including:
- an expectation that the board will review its own performance and that of individual trustees, including the chair, every year, with an external evaluation for larger organisations every three years
- that no trustee should serve more than nine years without good reason and that term limits are important for accountability
- thinking carefully about how boards recruit a diverse range of trustees with the skills and experience required to lead a charity
- boards involving stakeholders in key decisions and operating with the presumption of openness
- emphasis on the role of the chair and vice chair in supporting and achieving good governance
- increased oversight for large charities when dealing with subsidiary companies, registers of interests and third parties such as fundraising agencies or commercial ventures
- that the board evaluate a charity’s impact by measuring and assessing results, outputs and outcomes
For more information, please visit the NCVO website.