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Insights

Charity Commission report reinforces importance of good governance

Posted on 29th October 2021 in Charities and Social Enterprise

Posted by

Amy Laver

Partner and Solicitor
Charity Commission report reinforces importance of good governance

The Charity Commission’s statutory inquiry into Human Appeal has found failures, highlighting how important it is for charities to have good and robust governance.

This inquiry identified several failures by the then trustees and executive, including not complying with the charity’s own policies, failing to undertake adequate due diligence on some significant donations, and in their legal duty to file statutory returns with the Commission by the required deadline.

The inquiry concluded that there had been misconduct and/or mismanagement in the administration of the charity by its then trustees, as well as insufficient oversight of the charity’s executive by the then trustees.

Steve Roake, Head of Compliance Visits and Inspections at the Charity Commission said “Good governance is not a bureaucratic detail – it underpins the delivery of a charity’s purposes to the high standards expected by the public. Our inquiry found that the then trustees of Human Appeal did not have the oversight needed regarding the activities of their charity.”

“While trustees of larger charities will delegate certain tasks to staff members, we and the law are clear that trustees retain ultimate responsibility for running their charity, and our guidance is clear that trustees must ensure that robust reporting procedures are in place. Responsibility for ensuring they have sufficient information and are adequately informed to make decisions rests with the charity trustees.”

Read the full report

 

The results of the inquiry clearly highlight the importance of a trustee’s role and their responsibilities to their charity and its beneficiaries.

Find out more about becoming a trustee

 

How can Tozers help?

For further information about the role of trustees and governance please contact our dedicated Charities lawyers, or visit their hub page.

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