No one is suggesting that English and Welsh boards should follow the American model of ‘give, get or get off’, however the following suggests good practice with regards to fundraising:
Have a strategy – the board needs to ensure that there is a strategy, with identification of what funds are needed for and who should be asked to supply them. Few funders will nowadays supply unrestricted funds for core costs so clear projects need to be identified and management costs written in (though the nirvana of much fundraising activity is to increase the amount of unrestricted income, from regular small-scale donors, members, ‘commercial’ and partnership income etc.)
Be realistic about targets – avoid any temptation to make the deficit between known income and expenditure the fundraising target! This will not help accurate budgeting and achievement of a realistic target is good sense and motivates those responsible to do even better next time.
Ensure there is sufficient administrative back-up – donors must be thanked and kept informed of the company’s events and of how their contribution is helping. Nothing is more off-putting to a donor or sponsor than hearing nothing until another request for money.
Be aware of conflicts of interest with other board memberships – many board members sit on several boards and this can pose problems of loyalty where fundraising is concerned. This is not the case in some other countries. For example, in Australia, people generally only sit on one board at a time.
Consider whether the voluntary Code of Fundraising Practice should be adopted.
Use the annual report to make fundraising decisions transparent.
For up-to-date information on fundraising regulations see the Fundraising Regulator and the Charity Act 2016: new fundraising rules.
For more information see Leadership and Governance: a view from the other side of the world, by director of the Clore Leadership Programme, Sue Hoyle.
The Charity Commission requires charities to report serious incidents. This guidance helps charity trustees identify serious incidents. It also explains how to report them and what to report.
Reserves - the funds a charity keeps in reserve - can strengthen a charity’s resilience against, for example, drops in income or the demands of a new project. Find out what charity reserves are and how to develop and report on a charity's reserves policy.
A Vice Chair brings added skills, experience and perspective as well as helping to share the leadership role. The AoC describes a few of the important roles a good Vice Chair can play.
The best strategy to avoiding problems is being aware of how things could go wrong, taking steps to avoid issues and knowing what steps you would take if something did happen. Awareness and prevention are better than a cure. The AoC provides some useful resources for charity boards you can use.
Created and delivered by social enterprise Cause4, the Trustee Leadership Programme is an enriching career development opportunity that covers the key responsibilities of Trustees, governance and strategic planning, charity finance and fundraising.
Stephen Dunlop, Chairman of Open House Festival, was keynote speaker at the Arts & Business NI Conference 2018. This is a transcript of Stephen's keynote address - the story behind Open House Festival's governance development and journey towards a new building and sustainable future. Published: 2018.
Following the publication of the Report on Corporate Culture and the Role of Boards by the Financial Reporting Council (FRC), the City Values Forum and Tomorrow’s Company have published a guide entitled Governing Culture: Risk and Opportunity? – a guide to board leadership in purpose, values and culture. Published: September 2016.
A Charity Commission publication setting out all you need to know formally about being a trustee. First published: March 2012, latest updates: May 2018.
Find out what being a charity trustee involves, if you can claim expenses and where to get help and advice. First published: May 2013, latest updates: May 2018.
Nick Mott, Head of Policy Development and Review at the Charity Commission, highlights the key points of the Essential Trustee guidance. Published: August 2016.
10 practical tips to get the best out of your trustees. Published: February 2017.
There are several statutory obligations that registered companies must comply with or they will face financial penalties.
Company Directors have a legal duty to avoid conflicts of interest. This help sheet is designed to help you identify and deal with them correctly.
An update from the Charities' Commission on tax and trading.
This briefing looks at the Chair’s role in helping the board to navigate risk. Charities face a multitude of risks, that could derail you from achieving your charity’s aims. The challenge for Chairs is to ensure that your board understands and successfully navigates risks and seizes opportunities, without getting bogged down in details or being excessively cautious. This briefing explores how as Chair, you can help your board take a strategic approach.
In today’s dynamic and fast-moving workplace, the board plays an important role in risk management and establishing an effective risk culture. Published: August 2015.
A director’s practical guide to asking the right questions at the right time.
A guide to rethinking your charities' approach to risk. Published: 2016.
A leading resource of trustees and board roles for not-for-profit organisations
Adapt for Arts (AfA) exists to help arts and culture organisations become more sustainable. The On Board Project is on a mission to create amazing governance teams in the arts & cultural sector.
The guide will prove relevant to CEOs and their chairs but is also recommended reading for all those involved in the governance of third sector organisations. Published: November 2013.
In response to evidence suggesting an increase in concern regarding governance-related issues in the voluntary sector, the ACEVO Governance Commission set out to produce a practically-focused piece of work, focused on supporting voluntary organisations to understand and address the issues and challenges that can affect their governance. Guided by the concerns raised by respondents to the Commission’s consultation exercises, the report focuses on three main areas: appraisal and accountability; understanding roles and responsibilities; and board management. Published: 2013.
Details of new Charities Act fundraising rules which came into force on 1 November 2016.
What charities and their trustees need to consider when fundraising from the public. Published: June 2016.
This note provides guidance on the reporting requirements in the Charities (Protection and Social Investment) Act 2016.
A guide produced in partnership with CFG, NCVO and ACEVO to ensure fundraising aligns with a charity's purpose, values, and culture. Published: October 2016.
Links to the UK Government's 2018 study into fraud in charities. Published: April 2018.
Resources for tackling charity fraud.
EY’s 15th Global Fraud Survey contains insights from business leaders on the risks and challenges organizations face in fighting fraud and corruption in an era of significant technological advance. The survey also discusses how companies are addressing these risks through enhanced technologies and increased compliance efforts. Published: 2018.
This guidance is written for trustees of charities of all sizes and types, whether they are companies, trusts or associations to help them develop a reserve policy. Published: January 2016.
How to manage your charity’s financial activity and use internal financial controls to reduce the risk of loss. Published: July 2012.
This handbook aims to help treasurers feel confident in their role. Published: November 2017.
Helps Chairs explore and strengthen the relationship they have with their CEO. Published: 2016.
A Chair’s Compass – a guide for Chairs of charities and non-profit organisations focuses entirely on the Chair’s perspective and the particular challenges and opportunities of the role. Whether you are a new Chair, or highly experienced, this guide provokes both thought and action.