What is Governance?

Generally a charity is governed by a trustee board that takes overall responsibility for its work. 

Governance is a term used to describe the trustees’ role in:

• securing the long term direction of the charity (furthering its objects or purposes as set out in its governing document)
• ensuring that policies and activities achieve those objects
• ensuring the charity is run in a way that is legal, responsible and effective
• being accountable to those with an interest or 'stake' in the charity. 

Governance has been described as “the systems and processes concerned with ensuring the overall direction, effectiveness, supervision and accountability of an organisation” (Chris Cornforth).

Governance has also been described as “the process by which a governing body ensures that an organisation is effectively and properly run… Governance is not necessarily about doing; it is about ensuring things are done” (Sandy Adirondack).

Good governance is important to the health and success of a charity. 

When organisations get it right, good governance can mean a confident, forward thinking charity, where trustees are abreast of their duties and activities and services are well planned and well managed.

But poor governance, on the other hand, can mean a fragile, chaotic organisation with no sense of direction, in which trustees are unprepared for eventualities and unclear as to how best they can contribute.

Plenty of guidance exists to help trustees understand their role and put in place practices to govern effectively. A good start is to look at the seven principles of good governance and the formal duties and responsibilities of trustees.

Good governance runs throughout a charity. The trustee board is responsible for good governance, but they rely on many different people to be able to govern well – staff, volunteers, advisors and others with an interest or stake in the organisation (stakeholders).