You only have to subscribe to the Charity Commission’s notification service to see the constant stream of regulatory investigations that unearth poor governance in charities as the main factor behind other failings. This is mirrored week in week out in press coverage around failures (or perceived failures) in charity governance such as financial impropriety, safeguarding failures, harassment and bullying and much more.

Frequently the failings are in behavioural governance as much if not more than structural or procedural matters. Relationships breakdown (between Trustees and management or between Trustees) and this starts to feed through to a downturn in performance and funding and before too long the charity is in trouble, reputationally, and often also financially. What is really heartbreaking is that beneficiaries often suffer through reduced availability or quality of services.

It won’t surprise you to know that we think every charity should conduct a regular, proportionate, governance health check; at least every three years and possibly annually (where different aspects of governance are explored each year). Our advice is never to wait for a crisis, keep on top of governance and it will rarely come back to bite you.

The best starting point is the Charity Governance Code, first published in 2017 updated since (with more updates on the way). It’s not a rigid compliance framework but a set of principles and outcomes supported by recommended best practice that should be applied or, if not, the Trustees should be able to explain why not (and often there are very good reasons to do things differently given the specific context in which a particular charity operates).

If governance becomes a regular topic at Board meetings and senior management meetings then reviews cease to be heavy handed, burdensome affairs (although a root and branch review every 3-5 years will often be helpful in medium sized and larger charities). For small charities with limited budgets there are many self-diagnostic tools out there (just spend a few minutes on Google or the search engine of your choice), but be careful that group think doesn't take over; sometimes an external perspective from a consultant will be just what you need.

It’s also important to pace yourself with a governance review or health check. Take time. A broad look at governance is important, but you can accomplish that through a series of mini-reviews into key aspects of goverance (maybe taking one principle in the Charity Governance Code at a time). Once you have done that, then a full review with external support may well be the right next step.

Most importantly, make sure the review leads to action. It should not simply be a case of patting yourself on the back for how good your governance is. There will always be things you can improve and streamline. Then make sure that you return to review again some time after you’ve implemented the actions to see how things are working; a regular cycle of reviews will help achieve this.

If you would like to know more about governance reviews and health checks or any of the other governance support and training we offer, please contact us at julian@almondtreeconsulting.co.uk to arrange free initial telephone discussion.