Challenges and recommendations on charity governance.

Challenges to improving governance

1. Articulating a clear purpose and vision for the charity to focus and direct decision making.
2. Clear responsibility and ownership for critical matters within the Trustee Board.
3. The need for Charity Trustee Board members to have appropriate diversity of skills, thought and experience to provide effective leadership
4. Training of Charity Trustee Board members on matters tailored to their charity's business model.
5. Sufficient attention paid to issues that are material to performance, impact, legality or charitable objectives.
6. Lack of Charity Trustee board-level awareness
of and involvement in stakeholder engagement.
7. Ensuring governance systems, performance and impact align with the charity’s overall strategy

Recommendations for improving governance
1. Ensure that the charity’s purpose is clearly established and aligned with activities and that opportunities are assessed against it.
2. Develop a strategy and assess risks and opportunities in light of environmental, social and governance ( ESG ) concerns.
3. Equip the Charity Trustee board with capacity-building opportunities such as expert presentations on sector-specific insights, engagement with management and training on key issues.
4. Establish a Charity Trustee performance review process which is supported by clear KPIs and outcomes.
5. Create a dialogue and partnership with stakeholders to encourage their input and challenge the Charity Trustee board in developing policy.
6. Undertake an independent review of the Charity Trustee board every couple of years. Benchmark against other charities and previous years to track improvement.