Governance
Regardless of the size and maturity of your
organisation, governance is critical. It is not an
either/or. Whether your organisation has a board of trustees
or directors, or a management committee, it has ultimate legal
responsibility and needs to govern effectively.
Governance is very much a live issue in the
charity world at present. Both via SORP (accounting standards) and
greater monitoring, the Charity Commission is out to ensure the
board are clear on their legal responsibilities and how these are
carried through by the activities of staff or volunteers. With
increased contracting of care and other services to the voluntary
sector, rather than the commercial or public, journalists,
politicians and commentators are recognising the management
weaknesses which have previously been ignored because of the 'good
cause' perspective.
The board, however composed or called, has
ultimate legal responsibility for the organisation. Much may be
delegated, but there must be clear lines of authority - key is
defining responsibility reporting, to ensure that information of
the right type and detail for the organisation's size and
complexity gets to Board members in a reasonable timescale. Boards
should meet frequently enough to handle the resulting workload,
although sub-committees and officers can play a part.
The Governance Hub defines governance like
this:
What is governance?
By governance we mean ‘the systems and
processes concerned with ensuring the overall direction,
effectiveness, supervision and accountability of an
organisation'.
Who provides
governance?
In voluntary and community sector
organisations, the board of trustees provides governance. This
group oversees the organisation, making sure it fulfils its
mission, lives up to its values and remains viable for the
future.
To do this, the board sets up a variety of
systems to control and monitor the organisation’s activity. It
makes decisions along the way, altering the systems as needed. In
doing this, the board carries out governance. For a summary of what
the board needs to do to govern an organisation responsibly, see
the 12 key board responsibilities.
Why is governance
important?
Good governance is key to the health and
success of an organisation and is therefore high on the agenda in
all sectors, public, private and voluntary. As voluntary and
community organisations working for public benefit, we are
increasingly held accountable for our outcomes and expected to
demonstrate how well we are governed. Efficient and transparent
systems of governance really are of paramount importance today.
Useful links
The Governance Hub brings
together people, information and ideas about governance in the
voluntary and community sector.
This article
brings together various issues around 'governance' including:
- Checklist for Board members.
- Types of governing body.
- The recent picture - the 'typical'
board.
- Further Resources, including on founders
syndrome.
Governance Health Check (free)
Additional
Governance Hub resources
Acevo Governance Review Service -
The
Power up your board tool
Children’s Centres Website – Governance (inc. case
studies as well as DCSF reports)
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auditors
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