Is now the time to review your charity’s governance?
Sponsored feature | Kate Parkinson, senior associate, BDB Pitmans
It is well publicised that the pandemic has hit the third sector hard, not least because charity resources are severely stretched. With income down, and social distancing in place, charities face operational obstacles in pursuit of their purposes. Such difficulties remind the sector that strong internal structures facilitate early warnings as well as efficient operations.
On top of this, recent Charity Commission inquiry reports, such as that published in June 2020 on the RNIB investigation, demonstrate again that strong governance and comprehensive policies and procedures are essential to protect a charity’s beneficiaries and ensure long-term support of its social cause (there are more details of the inquiry report on our website, bdbpitmans.com).
The third sector is resilient, driven by the aspirations and dedication of a charity’s staff and volunteers. As we saw in the aftermath of the 2008 financial crisis, recovery is possible. The full impact of this crisis is still playing out and charities need to be ‘match fit’ to put themselves in the best position to weather the storm.
As these crises make clear, and as our experience shows us time and again, strong governance is important when an organisation is stress tested. This includes a dynamic trustee board, benefitting from a diverse skill set, together with both sufficient delegated authority for an organisation to move quickly and coherently, as well as effective reporting to enable the board to make informed decisions.
Alongside innovative fundraising initiatives and the changes necessary to pursue their socially distant public benefit, charities should take this time to consider whether these functions are underpinned with strong and effective governance. The Charity Governance Code is a good place to start, and while not a legal obligation, it sets out best practice. Considering your governance could prove vital at this time of change. Whether you are a community project, independent school, or household name charity, strengthening your governance now will support your decisions in the challenges ahead.
Kate Parkinson is a senior associate in BDB Pitmans’ specialist Charities and Not-for-Profit Team in Cambridge. Contact kateparkinson@bdbpitmans.com or visit bdbpitmans.com.
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