The Code is a complete overhaul of the existing charity governance and has been endorsed by the Charity Commission. There are two versions of the code; one is aimed at larger charities with an income in excess of £1 million and another for smaller charities that fall below this threshold. Both versions are based around the same key recommendations.
Some key recommendations include:-
• An expectation that boards of charity trustees will review their own performance and that of individual charity trustees, including the Chair. For larger charities this should happen every year, with an external evaluation every three years.
• That charity trustees are appointed for an agreed length of time and, if they have served for more than nine years, their reappointment is:
subject to a particularly rigorous review and takes into account the need for progressive refreshing of the board; and explained in the charity trustees’ annual report,
• Charity trustee boards should think carefully about diversity, how they recruit a range of skills and experience, and how they make charity trusteeship a more attractive proposition,
• Charity trustee boards should operate with the presumption of openness.
For the full breakdown of the principles of the code please click here for the new website.
The code is a valuable tool for charity trustee induction and training courses, as well as for conducting governance reviews.
If you or your Trustees would like any assistance with Charity Management, please contact a member of our Charity Team. We have many years’ experience of working in this field, and our lawyers act as clerks for several charities, some of which manage multi-million pound funds.