Business Matters
Governance / Code of Practice

FAQs - please see our Disclaimer

1) I have accepted an invitation to become a Charity Trustee. What should I do next?
If you have not already seen the latest accounts and Trustees Report then you should obtain them from the Secretary to the Trustees. You should also receive an induction pack.

2) Induction Pack?
This is a set of papers comprising the Mission Statement, copy Governing Instrument - this will be either Trust Deed, Constitution or, in the case of larger charities, the Memorandum and Articles of Association for a company limited by guarantee - charities form DEC1 and guidance notes on the duties of trustees. It should also include a governance policy.

3) Governance Policy?
This document - it is not an insurance policy - is also known in some organisations as a Code of Practice. Every organisation in the community and voluntary sector should have one. It is all about “systems and processes concerned with ensuring the overall direction, effectiveness, supervision and accountability of an organisation”. (From Cornforth via Change Up (2004))

4) What will be in it?
It is essentially a Best Practice Manual and, depending upon the size of the charity it would deal appropriately with, amongst other things:

• the role of the Board of Trustees (the Board is sometimes called the Management Committee or Executive Council)
• who chairs it
• how decisions are taken
• the Board’s effectiveness and performance appraisal
• setting policy and reviewing performance
• accountability
• risk management
• equal opportunities and inclusion
• delegation
• conflicts of interest
• relations with stakeholders

5) Sounds like it is a very comprehensive document. So, if the charity does not have one, what do I do?
I suggest you recommend it adopts a governance policy and that you know a firm of Solicitors which can prepare one.

For further information on Governance/Code of Practice, please contact us.