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Governance in Charities and Non-Profit Organisations

Governance

Julien Haye Trustee at NCT Posted 1 year ago

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CharityConnect: Governance in Charities and Non-Profit Organisations
The extract below forms part of a series of resources I am creating to help charities and non-profit organisations on risk, governance, and compliance. Let me know what you think.
Effective governance is crucial for charities and non-profit organisations to achieve their missions, maintain public trust, and ensure ethical and efficient management. Governance encompasses the systems and processes that guide an organisation towards accountability, transparency, strategic planning, risk management, and ethical behaviour.
  1. Accountability and Transparency: Governance ensures clear and accurate financial reporting, regular audits, and public accessibility of reports, fostering trust amongst stakeholders.
  2. Strategic Planning and Decision-Making: A well-functioning board of trustees, with diverse skills, provides strategic guidance, helping the organisation set and achieve long-term goals.
  3. Risk Management and Compliance: Robust governance frameworks help in identifying and mitigating risks, ensuring compliance with laws like the Charities Act 2022, which protects the organisation from legal repercussions and enhances credibility.
  4. Promoting Ethical Behaviour and Integrity: Trustees adhere to governing documents and uphold the charity’s values, promoting a culture of honesty and accountability.
  5. Improving Performance and Impact: Effective governance structures contribute to organisational efficiency and effectiveness by establishing clear roles, fostering accountability, and promoting continuous improvement.
  6. Building Stakeholder Confidence: Strong governance practices build and maintain stakeholder confidence through transparent communication and inclusive decision-making.
Incorporating requirements from the UK Charity Commission, such as annual reports and risk management statements, ensures that charities operate within legal frameworks and maintain high standards of governance. You can read the full article here: https://www.aevitium.com/post/governance-in-charities-and-non-profit-organisations
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