Following consultation which closed in February 2017, the Steering Group for the Charity Governance Code published the final version of the new Charity Governance Code on 13 July 2017. It outlines several recommendations including increasing the number of external reviews, which will occur every three years for larger charities.
The Steering Group was headed up by the Charity Commission’s previous director of policy and effectiveness, Rosie Chapman, and was made up of representatives from a number of charity groups such as NCVO, Acevo, SCC, ICSA and WCVA. The consultation process received more than 200 responses and the Charity Commission has withdrawn its Hallmarks of an Effective Charity guidance in favour of the new Charity Governance Code.
This is the third edition, which was previously called the Code of Good Governance, and sets out the seven principles that build on the Foundation principle, in order to achieve the charity’s organisation purpose and direction.
These principles are:
- Decision making, risk and control
- Diversity – increasing opportunities at board level
- Board effectiveness
- Open and accountable
The new Code means that charities will become much clearer on their obligations for the board. It will become an essential tool for charities, as the Code will demand standards and practice changes that will be integral to the charities themselves and help them to develop their effectiveness.
The full code can be accessed here, but if you have any further questions, please don’t hesitate to contact the Not for Profit team at Wilkins Kennedy, who will be happy to help.