Effective charity governance requires considering both the tangible and the intangible when working with management, and addressing culture and behaviour is as important as policies and procedures, says Pesh Framjee FCA
Effective governance is now seen as a must in all sectors and the non-profit sector has been raising its game. According to the Charity Governance Code: ‘Good governance in charities is fundamental to their success. It enables and supports a charity’s compliance with the law and relevant regulations. It also promotes a culture where everything works towards fulfilling the charity’s vision.’
While there is obvious commonality between the roles of the board across all sectors, the unitary boards found in the private sector, comprising executive and non-executive directors, are different from charity boards. The latter are usually made up entirely of non-executive trustees whose contribution is in providing independent thought, oversight and constructive challenges to the executive.