Charity Commission and ICSA launch governance review pilot

17 Apr 2012 News

The Charity Commission has teamed up with the Institute of Chartered Secretaries and Administrators to deliver a pilot project that aims to help charities improve their governance systems.

The Charity Commission has teamed up with the Institute of Chartered Secretaries and Administrators to deliver a pilot project that aims to help charities improve their governance systems.

Institute (ICSA) members will give free governance reviews and advice to 25 charities. The results will be compiled anonymously and reported back to the Charity Commission, which can then offer its own support and sector knowledge.

Charities that have registered within the last two years and completed at least one set of annual documents with the Commission will be prioritised by ICSA, which is leading the initiative.

This follows the Commission’s similar collaboration with the Institute of Chartered Accountants in England and Wales (ICAEW) last September, which focused on enhancing financial controls and risk awareness. That earlier undertaking is nearing the report release stage.

Seamus Gillen, policy director at the ICSA, explained that the project was inspired by the changing financial requirements of the sector. “Charity governance is coming under increasing scrutiny with issues such as tax relief coming to the fore,” he said. “ICSA is delighted to be part of the project which seeks to strengthen the way in which charities are perceived as trusted partners.

“People want to trust charities – and we want to make sure that is possible.”

Sam Younger, chief executive of the Charity Commission who announced the project this morning, said that he hoped the project would help produce a replicable model that charities themselves can produce in future: “This pilot project – like the existing project with ICAEW – was prompted by the Commission and has seen us involved – if at arm’s length – in its preparation and coordination.

“As regulator, the Commission will continue to take a keen interest in any findings from such reviews. But we envisage that, with time, charities and their advisers will take a lead in developing such reviews as a tool to share good practice and promote good governance.”

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