Mythbusting the Charity Governance Code
The Charity Governance Code has been around for years. Over that time, certain myths have emerged about the Code and how it is (or should be) used. We asked Radojka Miljevic, the voluntary and independent Chair of the group that oversees the Code, to take us through the facts and dispel some of the key myths she often hears.
Myth no. 1. The Code is owned or run by the Charity Commission. It is not. The Commission has no direct influence on the contents of the Code, which is developed by the sector via a collaborative Steering Group. A member of staff from the Commission sits as an observer at Steering Group meetings, and we benefit both ways from the sharing of insights on governance and regulatory issues. Ultimately, however, the Code is independent of the Charity Commission… but we are pleased that they have chosen to endorse the Code!
Myth no. 2. Compliance with the Code is a mandatory requirement. This is also not true — in fact adopting the Code is a voluntary act by any organisation/Board. The Code operates on the principle of ‘apply and explain’. We set out good practice recommendations that go above and beyond statutory requirements, encouraging organisations to be aspirational in looking always to improve governance.
Myth no. 3. Charities are suddenly going to be charged for using the Code. There are no plans or proposals to charge organisations for using the Code. As a Steering Group, ensuring the Code is accessible to charities is fundamentally important to us. We want as many charities as possible to use the Code and we know that, for many, payment is a barrier. That being said, we do need funds to maintain and develop the Code and we’re always interested in looking at new and different routes for funding. At the moment we do not have a consistent source of funding and the time spent by Steering Group members on Code work is funded by their organisations. Asking questions and collecting evidence about different funding options and charities’ ability or willingness to pay helps us in our broader conversations about funding going forward.
Myth no 4. The Charity Governance Code is well funded. This is our long-term hope, but at the moment the Charity Governance Code does not have a consistent source of funding. The Code is free to use, and relies heavily on the voluntary donation of time by the charities represented on the Steering Group and by myself as voluntary Chair. And while lots of organisations make use of the Code, including professional advisers, we do not charge them a fee.
Like other charities we apply for grants. We are grateful to Barrow Cadbury Trust, The Clothworkers’ Foundation, and the Chartered Secretaries’ Charitable Trust for funding past and present. We are considering how to improve our finances and have asked questions about possible sources of funding in the current consultation to get your views. We are also very grateful to Withers Worldwide and Wrigleys LLP, who are providing some support to the current consultation.
Myth no. 5. The Code does not have sufficient profile in the charity sector. Actually, yes and no! We would like it to be used by many more charities, but we need to learn from your inputs to the consultation about how we reach more charities and how the Code needs to change to work for more charities — smaller and larger. Our profile is highest when we conduct a review of the Code every few years to find out what you think. This is why it matters so much to us that as many of you as possible take the current consultation as an opportunity to voice your views.
We are open to hearing views from a wide range of charities whether they use the Code or not. We want to know about what you do and don’t like about the Code, how well it works for larger, smaller and micro charities, and how best to signal assurance to others of the quality of governance in the charitable sector. You can find a link to the survey here.
We also welcome invitations to speak about the Code. It’s always good to reflect, share learning and get closer to issues that concern those that the Code is designed to serve.
