Q&A: What is the Charity Governance Code?

The Charity Governance Code consists of 7 core principles that charity boards should focus on when considering how to run successful organisations. Here are some of the most important areas to consider when starting a charity or improving one to make it better align with the Charity Governance Code. 

1. Organisational Purpose 

Effective charities exist for a specific purpose that fulfils one or more needs for a particular population. Boards that are able to clearly state this purpose, explain why it is important, and provide evidence of its past success can more easily convince potential donors that supporting their mission is worthwhile. 

Having a well-defined purpose that appeals to a significant number of people often plays an important role in locating the financial donations, volunteers, and other resources the charity needs to effectively serve its community. 

2. Leadership

The charity board holds ultimate responsibility for most organisational decisions. Trustees, directors, CEOs, committee members, and other leaders must actively support the charity’s purpose and commit significant effort to its success.

Effective board members lead with confidence, stay organised, and make informed decisions that shape the charity’s future. They should understand what similar charities need to serve their communities well and consistently act in line with the charity’s values.

3. Integrity

Every board must operate ethically. For charities, this is essential. The communities they support are often more vulnerable than traditional service users, and charities rely on donated funds and volunteer time.

Boards must ensure that all resources are used responsibly and transparently, in ways donors and supporters would endorse. Policies, procedures, and values should clearly reflect this commitment. Making these publicly available strengthens the charity’s credibility and protects its reputation.

4. Decision-Making, Risk, and Control 

Achieving real impact requires taking strategic risks, but leaders must avoid exposing the charity or its beneficiaries to unnecessary harm.

Trustees must weigh every decision thoroughly, prioritising long-term benefit while keeping risk levels proportionate. Boards should also establish strong controls to manage known risks and minimise their impact.

5. Board Effectiveness 

A high-performing charity depends on an effective board. Strong leadership, sound decision-making, and genuine commitment drive a charity’s ability to deliver on its mission.

Charities with underperforming boards often struggle to make a lasting impact and risk closure without timely intervention. Regular board performance reviews help identify issues early and enable corrective action before they affect the charity’s success.

6. Equality, Diversity, and Inclusion

Boards set the tone for how a charity prioritises and demonstrates equality, diversity, and inclusion. Many of the people charities serve are directly affected by these issues, and boards must ensure their decisions reflect the needs of diverse individuals and communities.

This includes creating an inclusive environment where all trustees feel respected and valued. Each trustee offers distinct insights and experiences, which should inform board discussions and decisions.

7. Openness and Accountability 

Charity boards must remain transparent and accountable for their actions. The board’s oversight plays a critical role in enabling the charity to thrive, and those it serves have a right to know when leadership falls short.

Being open about operations invites public scrutiny, encourages trust, and reassures donors that their contributions support the intended causes. Accountability ensures the board remains focused on what matters most: delivering positive outcomes for the charity and its stakeholders.