The hallmarks of an effective charity - Charity Commission (2008)

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1 Governance best practice benchmarking - January 2016 This document sets out whether Population Matters governance processes and procedures follow recommended best practice. It assesses us against two documents. It is not a measure of effectiveness or overall performance. It is a self-assessment. It supersedes the governance review of January Each line from the documents is followed by our response. The hallmarks of an effective charity - Charity Commission (2008) Hallmark 1: Clear about its purposes and direction - An effective charity is clear about its purposes, mission and values, and uses them to direct all aspects of its work. ensures that its mission and planned activities are within the purposes set out in its governing document; These are set out in the Strategy and Plan. has a clear idea of its mission, and the strategies and steps that it will take to achieve it, set out in written documents that are regularly reviewed, giving the charity focus, direction and clarity; The Strategy is reviewed at least every three years and the Plan is reviewed annually. is able to explain how all of its activities relate to and support its purposes, strategy and mission, and benefit the public; This is set out in the Annual Report and the Strategy. regularly reviews whether the charity's purposes as set out in its governing document are up to date and relevant to the needs of its beneficiaries; This is reviewed as part of the periodical review of our Articles. is independent and recognises that it exists to pursue its own purposes and not to carry out the policies or directions of any other body; This is asserted in the Annual Report. considers future sustainability balancing what is needed now with what will be needed in the future. We maintain a financial reserves policy and develop budgets against our Strategy and Plan. Hallmark 2: A strong board - An effective charity is run by a clearly identifiable board or trustee body that has the right balance of skills and experience, acts in the best interests of the charity and its beneficiaries, understands its responsibilities and has systems in place to exercise them properly. ensures that the trustee body is constituted in accordance with the governing document; Page 1 of 8

2 We follow our Articles in this. identifies the mix of skills, knowledge and experience necessary for the efficient and effective administration of the charity and ensures that the recruitment and appointment of new trustees provides adequate opportunities for re-assessing and achieving that mix; We conduct a biennial board survey on board personnel requirements; and conduct an annual recruitment process. has a trustee body that is the right size for the charity large enough to include the skills and experience needed to run the charity effectively, but small enough to allow effective discussion and decision making; Our board membership is fixed at to twelve and is typically nearer the top of that range. has a clear understanding of the respective roles of the trustee body and staff with role descriptions for trustees and charity officers (such as the Chair and Treasurer); The role of the board and staff are set out in the schedule of delegation. ensures that the charity's committees, staff and agents have clear and appropriate delegated authority to carry out their designated roles in delivering the charity's purposes. It also has systems in place to monitor and oversee the way in which delegated powers are exercised; Staff have job descriptions and a schedule of delegation; the investment committee has terms of reference. The board receives quarterly and intermeeting reporting. undertakes all appropriate checks to ensure that a prospective trustee is both eligible and suitable to act in that capacity. (For some charities there may be a legal requirement to seek CRB disclosures for potential (and serving) trustees); Our recruitment process includes self-certification that candidates are qualified to be directors and a code of conduct requiring their signature. identifies and meets the individual induction, training and development needs of trustees and has in place a framework for evaluating board and trustee performance; We provide an induction process; we evaluate board performance through a biennial survey of board members and a review of the findings. ensures its trustees understand that they must act only in the charity's interests and that any conflicts of interest are identified and managed; We ask board members to sign a code of conduct; maintain a register of interests and ask board members to raise any conflicts of interests. identifies and complies with relevant legislation and takes professional advice where necessary. We identify relevant legislation through monitoring charity communications, comply with that legislation including maintaining the requisite policies and take professional advice where necessary, often on a pro bono basis. Page 2 of 8

3 Hallmark 3: Fit for purpose - The structure, policies and procedures of an effective charity enable it to achieve its purposes and mission and deliver its services efficiently. regularly reviews its governing document to ensure that it is up to date and that the trustees have the powers that they need in order to achieve the charity's purposes and to manage its resources effectively; We reviewed our articles in 2010 and plan to do so in takes appropriate steps to protect its reputation in all aspects of its work, especially in its dealings with beneficiaries and others with an interest in the charity; We maintain and publicize brand guidelines; we have clear and public policies and values. implements policies and procedures to ensure that all vulnerable beneficiaries are protected from abuse; Not applicable regularly reviews and assesses the risks faced by the charity in all areas of its work and plans for the management of those risks; We maintain a risk register and review it on a biennial basis. We take action, as set out in the register, to address those risks. regularly reviews its structures, policies and procedures to ensure that they continue to support, and are adequate for, the delivery of the charity's purposes and mission; this includes policies and procedures dealing with board strategies, functions and responsibilities; good employment practices and the encouragement and use of volunteers; We carry out biennial governance best practice benchmarking and board performance review. We also review our structures, policies and procedures as part of our annual plan. recognises, promotes and values equality and diversity in beneficiaries, staff and volunteers, and in all aspects of its activity; We affirm this in our diversity policy and monitor our diversity. considers whether collaborations and partnerships (including the possibility of a merger) with other organisations could improve efficiency, the use of funds and the better delivery of benefits and services to beneficiaries. We maintain membership of relevant alliances and umbrella bodies; build international alliances and; seek collaboration with relevant bodies. has regard to the impact of its activities on the environment. It considers ways in which it can take an environmentally responsible and sustainable approach to its work which is consistent with its purposes, even when its purposes are not specifically related to the environment. We have a policy of minimising our environmental impact. Page 3 of 8

4 Hallmark 4: Learning and improving - An effective charity is always seeking to improve its performance and efficiency, and to learn new and better ways of delivering its purposes. A charity's assessment of its performance, and of the impact and outcomes of its work, will inform its planning processes and will influence its future direction. has considered how to identify, measure and learn from the charity's achievements, impacts and outcomes, including the positive and negative effects that it has on beneficiaries, others with an interest in the charity and the wider community; We conduct testing exercises, exploring tactics. We measure outcomes where practicable. We review our activities in our Annual Report and as part of our Planning process. sets achievable targets and indicators against which success and improvement is measured and evaluated based on the purposes of the charity, the needs of its beneficiaries, the quality of its services and the resources available; We set such targets and indicators as part of our planning process. welcomes and acts upon feedback (positive as well as challenging) from its beneficiaries and other people with an interest in the charity about the services it provides and the areas where improvements could be made; All feedback is acknowledged, evaluated and acted upon if appropriate. We encourage website feedback, have an invitation for suggestions in the Update, print letters in the Magazine, have an interactive session at the Conference, review letters of resignation, conducted a member and supporter survey in 2015 and commission public surveys. looks at and assesses innovative and imaginative ways of working towards achieving its purpose and aims; We encourage and trial such approaches e.g. leaflet distribution, ing lists, display advertising, video and social media. We encourage information sharing amongst local groups and letter writers and through performance reporting. identifies emerging trends in the environment in which it operates and uses this information as part of its planning processes; We conduct PESTLE and SWOT exercises as part of our planning process. We monitor other organizations working in our space. identifies and uses opportunities to influence the environment in which it works to be more conducive to its mission and purposes, following the law and good practice when campaigning or lobbying; We are members of charity alliances which lobby to improve our operational environment. is not complacent but is engaged in a process of continual improvement, using techniques and tools best suited to its size and activities, such as recognised quality systems and benchmarking, in order to improve its own future performance; Page 4 of 8

5 We seek to identify and adopt best practice in all areas, including governance, and to improve our performance. We use charity alliances, monitor other charities, particularly population concern ones, use external experts, conduct reviews of other charities and seek collaboration with other charities. is ready to share good practice with others. We participate in Ella chief executive skillsharing and are open to any approaches from other charities. We have also proposed collaboration with specific charities and maintain links with others, such as via our Advisory Council and the European Population Alliance. Hallmark 5: Financially sound and prudent - An effective charity has the financial and other resources needed to deliver its purposes and mission, and controls and uses them to achieve its full potential. has policies to control and manage its reserves, investments and borrowing, taking professional advice where needed; We have reserves and investment policies. integrates financial planning with wider organisational planning and management, ensuring that funds are available when the charity needs them and are used in the most effective way to the benefit of the charity; The Budgets, Strategy and Plans are integrated and we have a Reserves policy. ensures financial sustainability by managing cash flow and monitoring and reviewing financial performance during the year, taking timely corrective action where needed; These are reviewed monthly by treasurer and chief executive and quarterly by the board. considers the sources of its income and has a strategy in place to raise the funds it needs - diversifying its sources of income as far as possible; Our Fundraising strategy seeks funds from fees, donations, legacies and charitable trusts. reviews its fundraising strategies and activities to ensure that they comply with goodpractice standards, taking account of any relevant ethical issues; We are a member of the Fundraising Standards Board and the Institute of Fundraising. is aware of the financial risks involved with existing and new ventures and manages the risk of loss, waste and fraud by having robust financial controls and procedures in place; We have a risk register, together with financial controls and procedures, including insurances and the maintenance of a financial reserve which covers potential costs. structures the charity's activities in a tax efficient way and minimises the operational risk to the charity from trading activities; Not applicable prepares its Annual Report and accounts in accordance with good practice requirements, and fulfils the legal requirements for filing in a timely fashion. Page 5 of 8

6 Good practice and legal requirements are followed. Hallmark 6: Accountable and transparent - An effective charity is accountable to the public and others with an interest in the charity (stakeholders) in a way that is transparent and understandable. complies with its legal obligations (and best practice), as set out in the Statement of Recommended Practice (SORP), to produce annual accounts and a report which includes an explanation of what the charity has done for the public benefit during the year; Good practice requirements are followed. explains in its Annual Report the extent to which it has achieved its charitable purposes in a way that people with an interest in the charity can understand; We do this. has well-publicised, effective and timely procedures for dealing with complaints about the charity and its activities. These should explain how complaints and appeals can be made, and give details of the process and likely timescales; Our complaints and whistleblowing policies are on the website. All complaints are responded to promptly. can show how it involves beneficiaries and service users in the development and improvement of its services; the contribution may have been by way of the appointment of beneficiaries as trustees or their involvement through discussion, consultation or user group input; Not applicable has a communications plan which ensures that accurate and timely information is given to everyone with an interest in the work of the charity, including the media, donors and beneficiaries. We have a communications plan to ensure accurate and timely information. Our annual and quarterly reports, journal, magazine and updates are on our website. The Good Governance Code ACEVO, NCVO (October 2010) Principle 1. An effective board will provide good governance and leadership by understanding their role Members of the board will understand their role and responsibilities collectively and individually in relation to: their legal duties their stewardship of assets the provisions of the governing document the external environment the total structure of the organisation Page 6 of 8

7 and in terms of: setting and safeguarding the vision, values and reputation of the organisation overseeing the work of the organisation managing and supporting staff and volunteers, where applicable. On appointment, board members are requested to read the Board guidelines, our Articles and The Essential Trustee. Board members are encouraged to participate in further reading and training on the role of the trustee and are directed to appropriate resources. Principle 2. An effective board will provide good governance and leadership by ensuring delivery of organisational purpose. The board will ensure that the organisation delivers its stated purposes or aims by: ensuring organisational purposes remain relevant and valid developing and agreeing a long term strategy agreeing operational plans and budgets monitoring progress and spending against plan and budget evaluating results, assessing outcomes and impact reviewing and/ or amending the plan and budget as appropriate. We review our purposes, strategy, plans and budgets annually and monitor, evaluate and review at Board meetings. Principle 3. An effective board will provide good governance and leadership by working effectively both as individuals and as a team. The board will have a range of appropriate policies and procedures, knowledge, attitudes and behaviours to enable both individuals and the board to work effectively. These will include: finding and recruiting new board members to meet the organisation s changing needs in relation to skills, experience and diversity providing suitable induction for new board members providing all board members with opportunities for training and development according to their needs periodically reviewing their performance both as individuals and as a team. We seek board members who contribute needed skills, experience and diversity; we direct new and existing board members to appropriate internal and external learning resources; we review the performance of the Board and its members biennially in our board survey. Principle 4. An effective board will provide good governance and leadership by exercising effective control. As the accountable body, the board will ensure that: the organisation understands and complies with all legal and regulatory requirements that apply to it the organisation continues to have good internal financial and management controls it regularly identifies and reviews the major risks to which the organisation is exposed and has systems to manage those risks Page 7 of 8

8 delegation to committees, staff and volunteers (as applicable) works effectively and the use of delegated authority is properly supervised. We review our governance against best practice; our accounts are reviewed by qualified and independent accountants; we have regular reporting; we maintain a risk register; delegation is supervised by the board at its meetings and by the chair between board meetings. Principle 5. An effective board will provide good governance and leadership by behaving with integrity. The board will: safeguard and promote the organisation s reputation act according to high ethical standards identify, understand and manage conflicts of interest and loyalty maintain independence of decision making deliver impact that best meets the needs of beneficiaries. Board members undertake to do this in signing the Code of Conduct. We ask board members to acknowledge conflicts of interest and have a procedure for managing them. The board measures impact as part of performance monitoring. Principle 6. An effective board will provide good governance and leadership by being open and accountable. The board will lead the organisation in being open and accountable, both internally and externally. This will include: open communications, informing people about the organisation and its work appropriate consultation on significant changes to the organisation s services or policies listening and responding to the views of supporters, funders, beneficiaries, service users and others with an interest in the organisation s work handling complaints constructively, impartially and effectively considering the organisation s responsibilities to the wider community, e.g. its environmental impact We use the update, magazine, annual report and annual general meeting to communicate; we consult members on constitutional changes; we listen and respond to stakeholders views by and at the annual general meeting and handle complaints appropriately. We minimise environmental impact. Page 8 of 8