Good governance is about more than getting the basics right: the importance of building stronger charity boards

Trustee Week provides a valuable opportunity to recognise the people who give their time, knowledge and experience to help charities make a difference. It is also an opportunity to pause and reflect on what effective trusteeship really means, and whether our boards are equipped for the challenges and opportunities ahead.

Being a charity trustee is a significant responsibility. It is a role that requires commitment, sound judgement and a willingness to ask difficult questions. Yet good governance should not be seen simply as a matter of compliance or fulfilling legal obligations. At its best, it provides the foundations for a charity to be ambitious, resilient and focused on its purpose.

Understanding the responsibilities

Every trustee shares six fundamental duties: ensuring the charity delivers its purposes for public benefit; complying with its governing document and the law; acting in the charity’s best interests; managing resources responsibly; exercising reasonable care and skill; and remaining accountable.

These responsibilities are shared equally, regardless of an individual’s professional background or experience. That is an important point. A trustee does not have to be an expert in everything, but they do need to understand their responsibilities, be willing to learn and contribute meaningfully to the collective decisions of the board.

The Charity Governance Code provides a useful framework for considering how well boards are operating. Its seven principles – organisational purpose, leadership, integrity, decision-making, risk and control, board effectiveness, equity, diversity and inclusion, and openness and accountability – offer a helpful basis for reflection. The emphasis should be on applying the principles proportionately and thoughtfully, rather than treating them as another compliance exercise.

Having the right people around the table

One of the greatest challenges facing charities is ensuring that their boards have the right balance of skills, experience and perspectives.

Trustee recruitment is not always easy. Many charities rely on personal networks, existing contacts and word of mouth. While these connections can bring valuable people into a charity, they can also limit the diversity of experience and thinking around the board table.

A skills audit can be a useful starting point. It encourages boards to look honestly at their current strengths and identify where additional knowledge or experience would make a difference.

This might include financial expertise, legal and HR knowledge, fundraising, marketing and communications, governance, digital capability, people and culture, or specialist professional and sector experience. Equally important are strategic thinking, constructive challenge, sound judgement and an understanding of the communities the charity serves.

The aim is not to create a board where everyone has the same professional credentials. It is to build a group of people who bring different perspectives, are comfortable challenging one another and can make well-informed decisions together.

There is also a need to think differently about recruitment. Are we looking beyond our usual networks? Are we making trustee roles accessible and attractive to people who may not have considered themselves suitable? Are we explaining the contribution trustees can make, as well as the responsibilities involved?

Succession planning is part of good governance

Recruitment is only one part of the picture. Retaining trustees, supporting them and planning for succession are equally important.

Long-standing trustees often hold considerable organisational knowledge and provide stability. However, there is a risk when too much knowledge or responsibility rests with one individual, particularly the Chair or Treasurer.

Boards should consider whether they have clear role descriptions, appropriate induction arrangements and a realistic succession plan for key positions. New trustees should receive an induction that helps them understand the charity, its governing document, their responsibilities under the Charity Commission’s guidance, and how the organisation operates in practice.

An annual review of board effectiveness and planned trustee turnover can help prevent dependency on particular individuals and create opportunities for fresh thinking.

Financial understanding matters

Trustees do not need to be accountants, but they do need to understand the financial position of the charity and be confident asking questions about it.

Management accounts should be reviewed against budget, reserves should be supported by an agreed policy, and restricted funds should be clearly monitored. Boards should also understand the controls in place to protect charitable resources, including financial authorisation, independent reconciliations and appropriate fraud prevention measures.

Alongside this, financial oversight needs to be forward-looking. It is not enough to understand what has already happened. Trustees should be considering cash flow, future funding, the real cost of delivering services and the financial implications of strategic decisions.

Risk management, safeguarding, conflicts of interest and the growing use of digital and AI tools also deserve regular attention. These are not isolated operational matters; they are part of the board’s wider responsibility to protect the charity, its people and its beneficiaries.

Small actions can make a significant difference

Good governance does not necessarily require extensive new processes or complicated frameworks. Sometimes the most valuable improvements are relatively straightforward:

• Undertake a board skills audit and identify gaps.
• Agree a succession plan for the Chair and Treasurer.
• Review the governing document and conflicts register.
• Ensure the reserves policy is current and understood.
• Put risk management and policy reviews into the annual board calendar.
• Make sure board papers provide the information needed to make meaningful decisions.

Perhaps the most useful questions for any board are also the simplest:

Are we receiving the right information? Are we challenging enough? Do we have the right people around the table? Do we understand our biggest risks? And, if we were asked to demonstrate the effectiveness of our governance tomorrow, how confident would we feel?

Looking ahead

Charities operate in an increasingly complex environment. Financial pressures, changing expectations, safeguarding responsibilities, digital developments and the need to demonstrate impact all place demands on trustees.

But this is also why effective governance matters so much. A strong board can provide clarity, confidence and direction, allowing an organisation to respond to challenges without losing sight of its purpose.

Trustee Week is an opportunity to recognise the contribution of trustees, but also to encourage boards to keep learning, reviewing and developing.

Ultimately, good governance is not about having all the answers. It is about asking the right questions, bringing the right people together and creating the conditions in which a charity can do its best work.