What is the Code?

The Charity Governance Code 2025 (the Code) does what it says on the tin: it provides guidance on the principles of good governance. Adherence to the code is voluntary for charity trustees. However, simply because it does not carry the threat of regulatory action by the Charity Commission for non-compliance, does not mean that charity trustees should ignore it.

The Code serves as a valuable practical tool for charity trustees to promote good governance within their charity. The Code is an aspiration rather than a requirement. Good governance is essential for trustees to meet their duties and act in a charity’s best interests. Those familiar with our charities monthly round-ups (read the latest edition here) will be aware of the vast number of Charity Commission inquiries, cautionary tales that have a recurring theme: poor governance.

Trustees therefore, have a set of principles and guidance to reflect on within the Code, being encouraged to take a step back and ask: how do we do things? How can we improve? The real value of the code is as a backbone to support change in the policies and procedures of charities and provide an aspirational aim for trustees to work towards. 

What has changed?

Trustee behaviours take centre stage, following some concerns that the Code could spill over into areas such as safeguarding during the consultation process. How trustees approach conversations at decision-making level is a firm part of the new Code. Encouraging unpopular decisions and leading by example are aspects the Code seeks to highlight. Meaningful change can only take place where difficult conversations are had, where norms are challenged and trustees query why they do things the way they do. By investigating the underlying rationale behind decisions and practices, trustees can identify whether their approach is fit for purpose. Routinely reviewing decision-making, risk or conflicts of interest and loyalty can facilitate the evolution of a charity’s approach to governance.

The language used by the Code has also been reframed for accessibility - for trustees to pick up and understand. For good governance to thrive, the Code must be clear and accessible for trustees. Steps have been taken in the Code to achieve this. Whilst a small change on the face of it, by improving accessibility, trustees are presented with an opportunity to encourage a culture of good governance. 

Suggestions are also presented for how each principle in the Code can be achieved. Whether that be managing resources and risks, ethics and culture, or board effectiveness, application is a focus. Trustees are therefore not left to ponder how they can demonstrate what a particular principle would require from them. However, the Code is not necessarily tailored to the needs of all charities; there is a lot to digest and smaller charities may not necessarily have the resources to adopt all suggestions. For example, whilst audits are helpful, they can prove expensive and technology policies may not be the most accessible for charities with an older volunteer/trustee base. However, the Code has retained an approach of adopting what you can and being aware of the reasons for what you cannot adopt. 

There is no one-size-fits-all when it comes to governance, and the size and operation of a charity should be carefully considered when assessing existing governance structures and procedures. 

Ultimately, the Code sets out a means for trustees to achieve good governance by providing a way to practically apply Commission guidance and expectations. Even if the 47 pages of the Code may be off-putting to some, have a read - you never know what you might just take away.

Next steps 

Looking to review your charity’s governance? Our charities team would be more than happy to help. For more information, please contact me.