Are there any issues on the horizon or areas that the Code should consider in the longer term? How far can we future-proof the Code?
Do you know anyone who can reliably predict the future? Many people have claimed they can, but with hindsight, most of them were proved to be wrong at some point.
It’s a strange thing. For some reason human beings expect to be able to predict future events. There are whole industries built on this. From consultants, insurance companies and investment managers to betting shops and astrologers. When something big and unexpected happens, hindsight kicks in and we think we should have seen it coming.
My current job includes some horizon scanning. This was new for me. I’ve realised that it isn’t about trying to predict what might happen in the future. It’s about seeing what is already happening and identifying what could become a problem. And we always have to bear in mind that there are things we don’t know.
Fundraising controversy and ethics
The 2015 fundraising controversy illustrates how complex events can be. In the downturn that followed the 2008 banking crisis, interest rates dropped. Funding from national and local government was also cut. Charities responded by seeking to boost donation income. They relied heavily on professional fundraising firms. Many trustees did not see oversight of fundraising as part of good governance. This all contributed to charities allowing their fundraisers to use unethical practices.
The lesson for charity governance was not about compliance with fundraising rules. It was about ethics, and always making the link to the charity’s purpose and values. It’s also about the scope of governance. It can be much easier to focus on policies, systems and procedures (the ‘what’ of governance) than getting the culture and the values right (the ‘how’ and the ‘why’). Fortunately, the Charity Governance Code helps us to look at both aspects.
The Code will never be ‘finished’
We need to keep updating the Code to reflect changing circumstances and good practice. The Code has developed in response to the banking crisis (it’s not only charities that have crises) and the fundraising crisis. The charity sector has responded to the safeguarding scandals that affected them and other sectors. NCVO’s Ethical Principles and ACEVO’s work on leading safe cultures are examples. The Code Steering Group recommends drawing this thinking into the Code.
In that sense the Code will never be ‘finished’. We need to keep pausing to allow charities that adopt the Code to keep up with its good practice requirements. We also need to keep looking forward, so the Code doesn’t become outdated. This is why the Code Steering Group is considering essential updates now, with a more substantial review in another couple of years.
So, what are the issues that we should be thinking about next? Are you aware of anything that could become a serious issue but people don’t seem to have noticed it yet? Please respond to the consultation before 28 February and let the Code Steering Group know what you think.
