3 reasons NOT to conduct a charity governance review and 1 very good reason why to. Let’s call it out – for most charities, governance is the elephant in the room.
Given the choice to spend time talking about a fundraising project or governance – fundraising wins hands down.
3 reasons NOT to conduct a governance review.1. It is time and money that should be spent on fundraising.
2. Governance is complex and challenging and so to be avoided.
3. Trustees are volunteers.
1 very good reason to conduct a governance reviewIn the event of a serious incident, think Oxfam, Save the Children and Kids Co, the associated publicity is harmful to a charity’s reputation and it also impacts trust.
What price do you put on reputation?
New ThinkingCharities customarily measure the impact of spending £1 on fundraising by the resulting income generated.
If the effectiveness of fundraising is influenced by the reputation of the charity, which in turn influences trust in the charity: what price do you put on reputation?
Talking and DoingWhat measures do you take to preserve a charity’s reputation?
One harmless action is to conduct a governance review that when properly conducted will expose risks that are so often the underlying cause of incidents that harm a charity’s reputation.
At your next board meeting, allocate 15 minutes to discuss what price you put on your charity’s reputation and try to identify risks that could harm that.
There is the purpose of a governance review to expose risks and deal with them before they cause harm.
Click here to read how Digi-Board help you know your governance strengths and weaknesses.