The refreshed Charity Governance Code was published on 3 November 2025. The code was first introduced in 2005. This fifth update of the code has been developed by a cross-sector voluntary steering group which included ACEVO, Association of Chairs, NCVO, Wales Council for Voluntary Action, and the Chartered Governance Institute (CGI). It remains an “apply or explain” code, developed by the sector for the sector.
While compliance is not a regulatory requirement, the code sets the benchmark for good governance in the charity sector. Following the code will help trustees to embed, nurture, and deliver good governance, which in turn should enable a charity to deliver its charitable purposes with greater impact. Meeting the code should also provide assurance to funders, donors, and other stakeholders that a charity is well governed. Conversely, if things go wrong in a charity due to a governance failure, which could have been prevented by following the code, the charity and its trustees may be scrutinised over this.
Who is the code for?
The code is for charities in England and Wales but may also be a useful tool for charities based elsewhere, as well as other non-profits that are not charitable. Unlike previously, there is a single version of the code for all charities.
There are other governance codes for specific sub-sectors that charities and their trustees may need to be aware of and follow.
The code’s universal principles
The code sets out eight universal principles of governance that will help charity trustees and others involved in charity governance to instil and develop good practice.
1. The foundation principle
Trustees take responsibility for, and invest the necessary time and care in, understanding the charity, their responsibilities and legal duties.
2. The organisational principle
The board is clear about the charity’s aims and how these benefit all or part of the public. It ensures that activity is targeted at achieving those aims both in the short and long term.
3. Leadership
The charity is headed by an effective board that provides strategic leadership in line with the charity’s purpose and values.
4. Ethics and culture
The board has agreed the standards and values which shape the charity’s behaviours and culture. This includes being open about how the charity operates and responding thoughtfully to feedback.
5. Decision-making
The board makes effective decisions that best serve the charity’s purposes. Trustees take personal responsibility for carefully considering each decision and working to reach agreement.
6. Managing resources and risks
The board takes responsibility for stewarding, developing and allocating resources. The board identifies the risks to achieving the charity’s aims and agrees how to navigate them. The board seeks assurance that risks are effectively managed.
7. Equity, diversity, and inclusion (EDI)
The board has a clear, agreed, and effective approach to supporting EDI throughout the organisation, including in its own practice.
8. Board effectiveness
The board works well together, using an appropriate balance of skills, experience, backgrounds, and knowledge. It reviews its performance on a regular cycle and takes steps to improve.
Meeting the principles
The code aims to foster a sector-wide understanding of what good looks like in governance practice. With this in mind under each principle, the code provides a list of:
- Indicators to help trustees understand how to achieve each principle and outcomes they can expect when the principle is being met.
- Behaviours by board chairs, trustees, committee chairs, and boards collectively, that help achieve the overarching principle. There is also guidance on practical things to do.
- Policy, processes, and practice relating to the principle. The code acknowledges that some practices may not be realistic for charities with few or no staff, especially micro or small charities. Where a practice is not viable, the trustees should nonetheless consider how to fill any gaps that may exist or that may appear as the charity evolves.
- Suggested evidence and assurance to demonstrate what trustees and their charity are doing to realise the principle. This section should be used as a set of prompts, rather than as a checklist.
Things to bear in mind
Previously, there were different codes for small and large charities. The new code applies to all charities, irrespective of size and complexity. It does, however, acknowledge that how it is adopted may depend on a charity’s size and whether it has any paid staff. It highlights where there may be additional or different expectations for larger charities or those with staff, eg for large charities to have a governance handbook.
The principles, policies, processes, practices, and behaviours dovetail. So that taken together they should help sustain good governance and help trustees and charities achieve their goals.
Trustees will need to consider the overlapping nature of the code. Trustees should work with staff and volunteers to co-create policies, processes, and practices and to cultivate values and behaviours. As when these are co-created, it helps everyone involved in the charity understand their role in ensuring they are lived top down and bottom up in a charity.
While the code refers to policies that a charity should have, it by no means provides a comprehensive list. The policies a charity needs will depend on its size, how it carries out its charitable purposes and, for some, the sub-sector in which it operates and any other governance codes that may apply. Therefore, the code is not a one-stop shop, and anyone involved in supporting or ensuring good governance in a charity will need to look beyond it.
The code’s eight universal principles for good governance build upon the assumption that a charity is already meeting its legal and regulatory obligations, and that charity trustees are cognisant of their legal responsibilities. That is a pretty hefty assumption to make, as far too many trustees have to learn on the job without a proper induction or ongoing support or training about their core legal responsibilities. There is a lot of free and accessibly priced training available to support trustees to understand their core good governance duties, including through Civil Society, the Confident Trustee Programme, Association of Chairs Board Leadership Programme, Cranfield Trust’s governance hub and the yearly Festival of Trusteeship, which takes place in Trustees Week.
Support and guidance on using the code
An updated Charity Governance Code website is due to be launched in 2026.
The current website that houses the code has a resources section. For each principle, this section signposts additional guidance and resources for charities and trustees, including other websites where you can find out more about governance.
The CGI has developed two free toolkits, one for small and micro-sized charities and one for larger charities. At the time of writing, these toolkits had not been launched. However, you can register your name and email address with the CGI to get the toolkits sent to you as soon as they are available.
What to do next
All trustees and anyone supporting the governance of a charity should familiarise themselves with the new code and consider how to use it to develop and strengthen governance practice.
When approached to do a governance review for a charity, I always ask whether the charity trustees have done an internal self-assessment. The new code, together with the anticipated toolkits and other interactive resources, should make it easier for trustees to conduct that self-assessment exercise before seeking any external review of the governance arrangements.
A parting thought
Well governed charities have trustees who recognise that having high governance standards involves a process of continuous self-improvement, rather than a task and finish exercise. This new code is a powerful tool for charities and their trustees to use on that kaizen journey.
Claris D’cruz is a governance trainer and consultant. She co-delivers the Confident Trustee programme. The first workshop of each programme, on the six core good governance duties, is free. The next free workshop is on 22 April 2026.
Claris D’cruz is also delivering the Preventing Charity Fraud training programme with Civil Society Media on 28 May 2026 and 6 October 2026.
