This week it was reported that a Poverty Charity had been dissolved by the Charity Commission after finding “Serious Misconduct”. The report highlighted some substantial failures of Governance.
It’s actually quite rare that the Charity Commission will close a charity and there usually needs to be serious misconduct involved for it to happen.
Whilst unlikely that many trustees will be involved in a charity that has that level of misdemeanour the report issued by the Charity Commission contained two elements that some might recognise.
- The inquiry report said that the “charity was poorly managed and not properly administered by the trustees”.
- The charity was run by three trustees and two “demonstrated a very limited understanding of the charity’s activities and admitted that they deferred decisions” (to the third trustee).
Ignorance is never an excuse for poor governance. So how can you ensure that you are not at risk of poor Governance?
- The Charity Governance Code https://www.charitygovernancecode.org provides a robust framework for reviewing your charity.
- Make sure you have read the Charity Commission’s The Essential Trustee: what you need to know, what you need to do (CC3).
- Make sure that you take time to review your Governance on a regular basis.
Whilst it may seen like an unnecessary overhead, seriously considering your charity’s governance should be an essential element of your planning and focus.
If you would like some help with your Charity’s Governance we offer Governance Reviews, Governance Problem Buster Workshops and Mentoring to directly support Trustees.