Charity News: Charity governance

Late last year the NCVO published an updated version of the Charity Governance Code as part of its commitment to review the Code every three years to ensure that it reflects any changes in society. Following consultation, two key areas of the Code have been updated.

Firstly, the focus of Principle 3: Integrity has been broadened. Previously it was primarily concerned with protecting the charity’s assets and reputation, but the updated Code places increased emphasis on values, culture and the right of everyone to be safe, which reflects developments in the sector and the NCVO’s own Charity Ethical Principles. As a consequence of these changes trustees are now expected to assess and address power imbalances where they exist, understand their safeguarding responsibilities, establish appropriate procedures that are integrated with the charity’s risk management approach and make sure that everyone in contact with the charity knows how to speak up and raise concerns.

The second area that has been updated Principle 6 which has been renamed Equality, Diversity and Inclusion. It was clear that the previous guidance could go much further to support charities work towards board diversity and creating an inclusive culture. As a result, the principle includes a recommended four-stage process for charities to follow as they embark on this journey.

It is the aim of the Code to help charities and their trustees develop high standards of governance. It is not a legal or regulatory requirement but is to be used as a practical tool. The Code sets the principles and recommended practice for good governance and is deliberately aspirational. It is intentional that the Code will be a stretch for many charities to achieve but should be used as a tool for continuous improvement.

Guidance: www.bit.ly/3svkVMW

Our full Charity Newsletter can be found here.

For more information on our charity services please visit our website or contact Frank Harling on 01932 830664 or charities@wardwilliams.co.uk

About the author

Frank originally joined PKG in 2005 before it was acquired by Ward Williams in 2010.  Having started at PKG as a Trainee he qualified firstly as an Certified Accounting Technician, before moving on and becoming qualified with the ACCA.

Frank is based at our Uxbridge office as Corporate Services Manager. Frank manages a portfolio of both audit and non-audit clients in a range of different sectors and industries, as well as assisting with the running of the corporate services department.

He has extensive experience of providing Audit, Accounts preparation, Corporation Tax, VAT, CIS and Payroll. Frank also holds a solid experience with regards accounting and audit in a number of specialist areas, including charities, solicitors and pension schemes.

frank.harling@wardwilliams.co.uk

01895 236335