Governance review deadline for charities
If your charity was registered in October 2023 and hasn’t reviewed its governance procedures since then, you’ll need to complete a governance review by October 2026. This is one of the changes introduced by the Charities Amendment Act 2023.
For many charities, this will be the first time they have carried out a governance review. While it may feel like another compliance task, it is also a useful opportunity to check that your charity’s governance arrangements continue to support the work you do.
What should you review?
A governance review involves taking a fresh look at how your charity is governed and whether your current arrangements are still fit for purpose. This includes reviewing your constitution or trust deed, along with your key policies and procedures, to make sure they continue to support your charity’s purpose and help you meet your obligations under the Charities Act.
As part of the review, your board should consider whether your governance arrangements are still working effectively. This may include asking questions such as:
- Does our charitable purpose still reflect the work we do?
- Are our governing documents still suitable for the size and nature of our charity?
- Do our rules or policies need updating?
- Are we meeting our reporting and other legal obligations?
- If we are a trust, has our trust deed been reviewed in light of the Trusts Act 2019?
- Are our key policies, including health and safety and financial policies, up to date?
- Are we identifying, managing and recording risks appropriately?
- Are conflicts of interest being identified and managed properly?
- Do we understand who our officers are, what their responsibilities are, and whether any appointments need to be reviewed?
How should you carry out the review?
The review does not need to be complicated or overly formal. For many charities, it will be enough for the board to discuss the review and record the discussion in the meeting minutes.
The important thing is to complete the review and keep a written record of the matters discussed, any issues identified and the decisions your board makes.
This record will help demonstrate that your charity has considered its governance arrangements and will also be useful when completing your annual return.
Larger or more complex charities may benefit from taking a more structured approach, particularly where the review identifies outdated governing documents, governance risks or unclear roles.
Governance reviews and your annual return
When you file your annual return, Charities Services asks you to confirm whether you have reviewed your governance procedures within the last three years.
Keeping a written record of your review will make it easier to complete this part of your annual return and demonstrate that your charity is meeting its ongoing obligations.
Why the review matters
A governance review is not only about meeting a legal requirement. It is also an opportunity to make sure your charity’s governance arrangements continue to support your purpose and the work you do.
Taking the time to review your governance can help identify outdated documents, gaps in policies, unclear responsibilities or other issues before they become bigger problems. It also gives your board an opportunity to check that your charity is well placed for the future.
How we can help
We work alongside charities and their boards to help them understand and strengthen their governance arrangements. Whether you are preparing for your first governance review, updating your governing documents, reviewing policies, or working through any governance questions, we can help make the process straightforward.
If you would like to discuss your charity’s governance review or would like guidance on where to start, please get in touch with our team.
How should you carry out the review?
The review does not need to be complicated or overly formal. For many charities, a board discussion that is properly recorded in the meeting minutes will be enough.
The important thing is that the review is completed and that you keep a written record of what was considered, any issues identified, and any decisions that were made. This record will help demonstrate that your charity has considered its governance arrangements and will also be useful when completing your annual return.
Larger or more complex charities may benefit from taking a more structured approach, particularly where the review identifies outdated governing documents, governance risks or unclear roles.
Governance reviews and your annual return
When you file your annual return with Charities Services, you will be asked to confirm whether your governance procedures have been reviewed within the last three years.
Keeping a written record of your review will make it easier to complete this part of your annual return and demonstrate that your charity is meeting its ongoing obligations.
Why the review matters
A governance review is not only about meeting a legal requirement. It is also an opportunity to make sure your charity’s governance arrangements continue to support your purpose and the work you do.
Taking the time to review your governance can help identify outdated documents, gaps in policies, unclear responsibilities or other issues before they become bigger problems. It also gives your board an opportunity to check that your charity is well placed for the future.
How we can help
We work alongside charities and their boards to help them understand and strengthen their governance arrangements. Whether you are preparing for your first governance review, updating your governing documents, reviewing policies, or working through any governance questions, we can help make the process straightforward.
If you would like to discuss your charity’s governance review or would like guidance on where to start, please get in touch with our team.
This article is brief and general in nature. You should not treat it as legal advice and should seek professional advice before taking any action in relation to the matters dealt with in this post. Armstrong Murray accepts no liability for losses suffered by any person or organisation who may rely directly or indirectly on this article.
