Good governance is a term used to describe how institutions conduct their affairs and manage their resources. Good governance is essential to ensure the effectiveness, sustainability and vitality of any organisation.
A good management committee should:
• understand their role
• ensure delivery of organisational purpose
• be effective as individuals and a team
• exercise control
• behave with integrity
• be open and accountable
We aim to support and enable good governance, inform groups of topical governance issues and provide information on useful and relevant resources.
An updated version of Good Governance: a Code for the Voluntary and Community Sector (the Code), was launched during October 2010. Building on the success of the original Code (published in 2005), the second edition is designed to be clearer and easier to use for the whole range of voluntary and community organisations. Learning from the economic downturn and new thinking on governance, as well as consultation with governance experts and Code users, the updated Code focuses on understanding why good governance matters, and making it meet your organisation’s needs, avoiding the risks of a tick-box approach. The relaunch has been overseen by the Code Steering Group, made up of representatives from ACEVO, CTN, ICSA and NCVO who share a belief that good governance underpins effective performance in the voluntary and community sector. The Group has an independent chair Lindsay Driscoll, and representatives from the Charity Commission also attend the meetings. The Commission has supported the Code since its inception. The Code will help trustees and chief executives of voluntary and community organisations to promote good governance and lead by example. It can also inform staff, volunteers, members and service users about what they can expect from a well-governed organisation. The Code is available in full and summary versions. Lindsay Driscoll, independent chair of the Code Steering Group, said: ‘Governance is high on the agenda in all sectors – public, private and voluntary. As voluntary and community organisations driven by altruistic values and working for public benefit, we are increasingly expected to demonstrate how well we are governed. Good governance is a vital part of how voluntary and community organisations operate and are held accountable.’ Joss Saunders, Company Secretary and Legal Advisor to Oxfam, said: ‘We used it (the Code) to benchmark our own governance. As a result of this exercise, we made some useful changes to our procedures, which has improved our transparency.’ Dorothy Dalton, Governance Expert, commented ‘I think the Code is an excellent document: clear, succinct and precise.’ The Code Steering Group is starting work on a version for small, unstaffed voluntary and community organisations, due for launch in Spring 2011. They are also creating a new website to host the Code and supporting information.
This pocket guide is a summary of 'Good Governance: A code for the voluntary and community sector'. It is intended to help and support board members in the important and rewarding work that they carry out. It is also useful for staff or advisers supporting governance in an organisation.
The Charity Commission's website has a section which gives advice and guidance to help trustees understand good practice and the extent of their powers and duties when managing charity resources.
10 tips for developing good governance from the Foundation for Good Governance
Protecting the health and safety of employees or members of the public who may be affected by your activities is an essential part of risk management and must be led by the management committee. 'Leading Health and Safety at Work' has been produced in association with HSE to provide guidance and ensure compliance with requirements.
A code of conduct is an agreed set of guidelines outlining the responsibilities of, or proper practices for, an individual or organisation. Codes come in many different shapes and sizes, from short and simple to comprehensive,complex and legalistic, but the most important characteristic of a code must be that it is appropriate for the particular organisation that seeks to use it. A code is not, in itself, a legal requirement, however some of the contents of a code of conduct may include or describe legal requirements.The Trustee Network (CTN) has produced 'Codes of Conduct for Trustees' to aid anyone who is a trustee or works with trustees, and who wants boards, and the trustees on them, to be as effective as possible and to work well together.
Would you like to nominate a trustee or management committee member for their outstanding service to the community? The honours system recognises people of outstanding merit, and those who have committed themselves to the service of the nation. Achievement comes in many forms but honours committees are looking for someone who has made a difference in their field of work or community.
The National Council for Voluntary Organisations (NCVO) produces many good resources, including:
- 'Learning to Fly - piloting your local voluntary or community organisation'
- 'Trustee Responsibilities' quiz - part of a Code of Governance toolkit
NCVO offers an online toolkit for Trustee Recruitment for Small Organisations which has been designed to help you find, recruit, induct and keep trustees and/or management committee members. It has been developed with small voluntary and community organisations (VCO’s) in mind.
This short 'Trustee Guide to Campaigning and Influencing' from NCVO outlines both what is required by the law and what is good practice in the development and implementation of effective campaigns. It’s relevant whether you are involved in a large organisation looking at the strategic overview or in a small organisation and are more directly involved in the day-to-day delivery of activities.
HRBank is a collection of human resources policies and job descriptions donated by voluntary and community organisations, which are available for organisations to amend and tailor to their own needs.
CWIC (Coventry & Warwickshire Infrastructure Consortium) have developed a range of policies suitable for charity groups. These should be used as drafts and adapted to your organisation's circumstances.
Links to useful websites: