Charity Governance Code: Decisions and actions of a Charity are the responsibility of its Board

Decision-making, risk and control is the fourth principle from the Charity Governance Code, and ultimately reinforces the key principles of governance that Charities should embed into their decision-making process.

Board meeting

The Board of Trustees holds ultimate responsibility for ensuring good governance. As part of its governance arrangements, the Board should ensure that it has a sound decision-making and monitoring framework, retaining strategic matters at Board level and delegating operational matters to management. By ensuring that both the governing documentation and purpose of the Charity are considered when undertaking any actions, Boards can assure that decisions are being made in accordance with the best interests of the Charity.

Good governance arrangements rely heavily upon the Chair, who has an integral role in leading the Board of Trustees. Ensuring that the Board is provided with all the relevant information and documents to make these informed decisions is an essential part of good governance and the role of the Chair.

So what steps can charities take to ensure compliance with the decision-making, risk and control principle?

  • The Board of Trustees should regularly review the matters reserved for the Board and the matters delegated to management to ensure that the correct balance is achieved.
  • The Board of Trustees should regularly review its existing risk management arrangements, including the effectiveness of its risk register, and ensure such arrangements are aligned with the designated risk appetite of the Charity.
  • The implementation of a framework to capture all relevant information for the Board of Trustees, in which to review and provide a benchmark for operational performance.
  • Adding a strategy and performance item to the board agenda, to include a review of all relevant key performance indicators, and ensuring these are aligned with the purpose and values of the Charity.
  • If applicable to the Charity, careful consideration should be taken regarding the auditor’s management letter and to ensure this is taking into account it should be included at the top of the board agenda.

The implementation of such steps can be a burden on the day-to-day running of your charity, therefore, working with a trusted and specialist corporate governance provider will not only ensure adherence to the Charity Governance Code, but also allow Trustees the time they need to focus on pursuing their charitable objectives.

If you would like to find out more about the help that is available, please contact us.

Joshua Kendal
Assistant Manager, Business Development
Corporate & Private Clients
Vistra UK
Tel: +44 (0)20 3872 7367
Email: Joshua.Kendal@vistra.com

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