The updated charity governance code

The new Code consolidates its guidance into one single framework, rather than having two separate codes for small and large charities. This makes the guidance more accessible, allows those in leadership positions to focus on implementation rather than the regime that applies, and recognises that there are essential behaviours and practices that every charity should have in place. 

The Code has been reframed to place an even greater focus on practical implementation. The previous version provided a rationale for each principle which was then followed by key outcomes and recommended practices. The new Code goes further by providing a detailed breakdown of suggested behaviours, policies, processes and practices to implement, as well as indicators which highlight “when it’s working”. The suggestions are non-exhaustive and serve as examples for each principle and are a useful starting point for leaders looking to translate each principle of good governance into practice.  

The “foundation” concept, which formerly set the scene for the Code, is now a stand-alone principle, emphasising that it is fundamental to good governance. The principle places importance on complying with legal and regulatory requirements, committing to ongoing learning and development, keeping the charity’s mission central to decision-making and promoting strong and healthy governance. The Code now provides practical guidance on how to implement the concept. 

Several of the Code’s principles have been reorganised. The new Ethics & Culture principle takes the place of Integrity and Openness & Accountability, while Decision-making and Managing Resources & Risks together replace the previous Decision-making, Risk & Control principle. These adjustments do not signal a significant change in what is expected of trustees; instead, they separate, clarify and build on themes in a way that reflects how charities now operate.

The EDI (Equity, Diversity & Inclusion) principle has been broadened to align with the approach that many charities take. It now expects, for example, trustees to “act swiftly to identify and stop inappropriate behaviour” and to “work with stakeholders to set a clear organisational approach to EDI”. The new Code reflects a shift in expecting trustees to view stronger behavioural and inclusion standards as the norm.  

The updated Code recognises topics that have become increasingly relevant to charities in recent years, including digital capability, AI, cybersecurity, environmental responsibility, public engagement and workforce wellbeing, which are now explicitly referenced. These areas have been part of many strategic conversations and their inclusion confirms their place within the broader governance landscape. 

Although the Code remains voluntary, it provides a clear and comprehensive guide to implement good governance standards. Boards may find this a useful opportunity to reflect on their current practice, identify areas for future development and consider the expanded areas of the Code. We recommend that all charities should consider carrying out such a review in the coming months.