'The leadership, direction and supervision of an organisation'
Charities and other voluntary and community organisations play a vital role in our lives and they command enormous public trust and confidence. This is reflected in the generosity with which people in Britain give their time and money to charities they support.
Trustees and board members therefore carry an important responsibility to manage their organisations and deliver on their objectives in a way that enhances that public trust and support.
Governance means making sure that the organisation is well run (or ‘governed’) and carries out the work it was set up to do. This involves planning for the future, guarding the organisation’s values and reputation, looking after the money and people and being accountable for the organisation’s actions and decisions. Organisations that are not well governed tend not to make the best of their opportunities and resources. In extreme cases a lack of good governance can put the entire organisation at risk. Good governance therefore plays an essential part in securing the future of an organisation.
Trustees have and must accept ultimate responsibility for directing the affairs of a charity, and ensuring that it is solvent, well-run, and delivering the charitable outcomes for the benefit of the public for which it has been set up.