The Charity Governance Code – a pan-sector guide to best practice in running a voluntary sector body – will emerge in a new edition this autumn. It is a long-expected development: many observers are concerned that, with the Charity Commission overwhelmed by the scale of its regulatory brief, a renewed focus on preventative good governance is one of the few tools available to mitigate the risk of problems emerging in charities large and small.

The code itself appears in two guises – one for smaller and one for larger charities. In terms of revisions in the new code, changes are expected in the fields of engagement, digital strategy and sustainability practice. 

Engagement, digital and environmental strategies

On engagement, there is an expectation that not-for-profits will be expected pursue more sustained strategies of openness and accountability, with a pronounced focus on engaging beneficiaries, partners, communities and funders on a more consistent basis, and to use the feedback of a range of stakeholders to assist with high-quality strategy setting and transparency.

One of the key fields of growth since the last edition of the code has been the explosion of digital and data driven risks and opportunities. Charities have significant data handling responsibilities, and, in an environment of pitiless and exploitative cyber-attacks, trustees and management teams need clear and pre-agreed policies and procedures for compliant data-handling, and strong decision-making in the heat of a cyber incident, should the worst happen.

Digital platforms and operations significantly enhance the way in which charities can extend their reach and effectiveness. A robust framework governing the use of digital tools, including AI, to pursue the charitable objectives of the organisation should be reviewed and adopted as part of the board’s code compliance activities.

Finally, despite events in the USA, the trend in corporate non-financial reporting is leaning firmly towards the clear pursuit of environmental, social and governance objectives. Charities need to demonstrate that they have a clear plan for operating sustainably as an organisation, in their operations and central functions, as well as in their programmes, where these have a potential environmental impact.

Communications come to the fore

Strategic communications can play a central part in achieving these changed objectives, including by:

• Reviewing the capabilities of the organisation’s communications function
• Ensuring an actionable digital communications and data handling strategy is in place
• Preparing relevant crisis and issues management policies and procedures
• Deploying appropriate and effective investment in stakeholder engagement and using this activity as a way of driving the development of better information corporate planning and programme activities.

2025 is a critical year for the sector. Adapting operations to a more uncertain and unpredictable social, economic and political environment will be essential to the success of the organisation. It also follows that the role of strategic communications and crisis planning will acquire greater prominence around the charity boardroom table, with trustees and chairs wanting to reassure themselves that they have all bases covered.