Code of Governance

Good governance

“Good governance in charities is fundamental to their success. It enables and supports a charity’s compliance with the law and relevant regulations. It also promotes a culture where everything works towards fulfilling the charity’s vision.” Source: Charity Governance Code.

The Charity Commission has supported and endorsed the charity sector's governance code (July 2017) now in its 3rd edition following a consultation with the sector led by the Charity Governance Code Steering Group.

The purpose of the code as reported by the Charity Commission is: “To help charities and their trustees develop high standards of governance. As a sector, we owe it to our beneficiaries, stakeholders and supporters to demonstrate exemplary leadership and governance."

Digi-Board has interpreted the principles of the code (see below) into an easy to understand questionnaire format that reviews a charity’s governance. For convenience this is available online 24/7. This allows the board to quickly assess the ‘apply or explain’ test of its current governance practices as described in “the Code”.

In support of this the Charity Commission note that: “all trustees are encouraged to meet the principles and outcomes of the code by either applying the recommended practice or explaining what they have done instead or why they have not applied it - known as 'apply or explain.”

In addition the Digi-Board review goes further. As well as the Code's principles the questionnaire delivers further insights of factors that support good governance. These are board behaviours and cultural practices, the charity’s approach to fund raising and the use of digital and GDPR – all critical to holistic governance.

There are two versions of the governance code for smaller and larger charities. Please Note: The recommendation is for charities with income less than £1M per year to use the code for smaller charities and those over £1M the larger charities code.