Is the new Charity Governance Code an improvement?

In late October 2025 a new Charity Governance Code was published. Unlike previous updates, the new code is a significant revision. It is structured much more accessibly (it only takes 30 minutes to read from cover to cover) and the prescriptive ‘recommend practices’ have largely disappeared, in favour of short sections within each principle on behaviours, policies, processes & practices and examples of evidence of good governance.

The new code places much greater emphasis on behaviours, something we have long argued in favour of. In our view, while structures and processes can help ensure good governance and promote appropriate behaviours, if people do not behave well, governance will be poor. Equally, while good behaviour can result in good governance, despite the absence of appropriate structures and processes, this creates a high risk situation where good governance can quickly collapse if behaviours change (e.g. in response to a change of personnel or an increasingly stressful situation).

The new code continues the trend of increasing emphasis on the importance of good practice in promoting Equity, Diversity and Inclusion. It also strengthens the aspects of the code that seek to ensure high standards of ethics and culture. We warmly welcome both of these trends.

The fundamental structure of the code has changed. Previous versions were structured around 7 principles and a foundation (see diagram below). The new code has 8 principles(see diagram opposite, which are updated and significantly different from the previous principles. There is continuity, but the new structure is much simpler to understand. It also more clearly supports the core trustee duty to manage resources and risks effectively. Openness and transparency is not lost as a concept but is subsumed with the other principles.

We strongly encourage charities of all sizes to read the new code and consider reviewing the effectiveness of their governance, using the new code as a benchmark.

To understanding the importance of good governance, you only have to see the constant stream of regulatory investigations that unearth poor governance in charities and regular press coverage around governance failures (e.g. financial impropriety, safeguarding failures, harassment and bullying, etc.). Frequently failings are in behavioural governance , where relationships have broken down (between Trustees and management or between Trustees) and this starts to feed through to a downturn in performance and funding and before too long the charity is in trouble, reputationally, and often also financially.

It won’t surprise you to know that we think every charity should conduct a regular, proportionate, governance review. The new code should help with this.

Our advice is never to wait for a crisis, keep on top of governance and it will rarely come back to bite you. If governance becomes a regular topic at Board meetings and senior management meetings then reviews cease to be heavy handed, burdensome affairs (although an independent governance review every 3-5 years will usually be helpful in medium sized and larger charities).

Like this article? Join 250+ charity professionals receiving free monthly insights on governance, strategy and fundraising and much more.

Want to find out more? Contact us at julian@almondtreeconsulting.co.uk to discuss your organisation’s needs.