Keeping Your Charity on the Right TrackJanuary 18, 2017
In conjunction with MHA, our national association of UK accountancy firms, we have put together a 12 month good governance checklist to help you plan your year ahead. Use our checklist to establish your current position, where you would like to be and how you are going to get there.
In month one, Jamie Davidson, Partner & Head of Charity, takes a look at board responsibilities and effectiveness.
Are We An Effective Board? – Jamie Davidson
All charity boards must, first and foremost, ensure that they are discharging their legal responsibilities if they are to be considered an effective board. They could be providing a lot of detailed operational input, but if they have not first ensured, for example, compliance with the governing document then they would be falling short in their role. So what are these overriding responsibilities?
- To act in the interests of the charity and put the interests of the charity first;
- Ensure the charity acts in accordance with its governing document and in a manner which is consistent with its purposes;
- Act with due care and diligence;
- Ensure compliance with legislation.
With these responsibilities always in mind, a board will be demonstrating good governance if it works to exercise control and deliver the organisations purpose. To do this the members of the board must fully understand their role; this includes not just what they should be involved in, but also what boundaries exist and when they should allow delegated management space to run the organisation.