In recent weeks a few of our clients have suggested that they have more important things to focus on than governance. At one level that may be true but in reality, good governance matters more in a crisis than it does in so called “normal” times.

Charities and social enterprises have risen to the challenges of the Covid-19 pandemic in heroic fashion. They are getting food and medicine to people who otherwise would go without. They are keeping in touch with vulnerable people and protecting the mental health of young and old alike. They are supporting health and care services in a myriad ways (direct and indirect) and they must be lauded for doing so.

To respond to a crisis like this, decisions need to be made quickly and risks need to be taken even if Trustees or senior staff might not be available when you need them. In such circumstances it is inevitable that mistakes will be made. Of course the relevant authorities are likely to be much more tolerant of innocent, well-intended mistakes or breaches of the rules. But that is unlikely to be the case where significant harm results; in fact the opposite may then be true, even more so if people have behaved recklessly or knowingly broken the law.

Vulnerable people need to be protected more than ever during the Covid-19 crisis and it is, therefore, essential that charities doing fantastic work to help people in challenging times make sure that the right safeguards are in place.

This doesn't just mean safeguarding in the traditional sense of keeping children and vulnerable adults safe from harm, for example to ensure that emergency support doesn’t expose them to risks from scammers, fraudsters or others who might exploit the situation.

It is essential to make sure staff and volunteers are working safely and that they are supported through the crisis; very few people can help others effectively if they are worried about their own security of that of their family.

It is also important to ensure that charitable assets and funds are safeguarded. Unscrupulous people (be they staff, Trustees, volunteers or others) will try to take advantage and so it is important to ensure financial controls remain robust and that reporting to regulators is not neglected.

Most regulators, including the Charity Commission and Companies House, are relaxing rules or offering flexibility in filing deadlines and other requirements. They are also offering advice on ensuring that the shift to working from home and online meetings is done properly.

For example, many charities and social enterprises have found that their governing documents don’t allow virtual meetings; what should they do? In the short term, our view is that they should take a pragmatic, risk assessed view of how to conduct their business in the most compliant way possible. This could involve delegating formal decision making to an individual (e.g. the Chair or CEO) in consultation with the Board where necessary.

In the long run, after the crisis has passed, all should review their governing document(s), schemes of delegation, policies and procedures in the light of the lessons learned through the period of the pandemic and its immediate impacts. It is almost inevitable that some or all of these will need updating so that, if and when another disruptive event occurs, the organisation is better placed to respond and remain compliant.

To find out more about the governance support and training we offer, please contact us at julian@almondtreeconsulting.co.uk to arrange free initial telephone discussion.