How To Build An Effective Charity Board

A successful charity depends on more than a powerful mission and consistent funding. Effective governance is equally as important in helping organisations navigate challenges and deliver lasting impact.

The importance of effective governance is especially evident in the current climate. The Scottish Council for Voluntary Organisations (SCVO) reported in July that 97% of organisations report facing challenges over the last six months. While every charity is different, the most successful charities increasingly resemble well-run businesses – and there are a number of governance principles that can help.

Creative a positive board culture

An effective charity board should be built on a culture that encourages open discussion and constructive challenge. Trustees should feel comfortable raising concerns, asking questions and testing existing processes. This can be facilitated by having structured meetings that allow for productive conversations, but also encourage participation.

Open discussion and shared goals are key to better decision-making and also helps to identify risks before they become significant issues. Just as important is celebrating the charity’s successes and showing support for innovation.

The chair has an important role in fostering this environment, ensuring all trustees have the opportunity to contribute and that differing viewpoints are respected. A board that welcomes challenge is better equipped to make informed decisions in the charity's best interests.

Be transparent

It is crucial that trustees have access to the information they need to fulfil their duties, while stakeholders should feel confident that the charity is operating responsibly and openly. As a result, clear reporting and honest and appropriate communication with funders, regulators and beneficiaries are all fundamental.

Transparency also promotes accountability, which helps charity boards to show that they are acting appropriately. That can be done through social media channels, communications with stakeholders and, of course, the trustees’ report in their annual accounts.

Diversity of thought and skills

It is now accepted that charity boards must have a balanced mix of skills, taking into account lived experience, professional expertise and sector understanding. This allows for a better balance of views on particular issues and helps to better reflect the communities they serve. It is also an important step in ensuring that prevailing attitudes are challenged.

To make sure different experiences are represented, the board should be built using an open and transparent recruitment process, with an active focus on diversity, equity and inclusion. Key to this is wide-reaching advertising to help attract a mix of applicants. 

Invest in training

The most effective boards do not stand still. Continuous training is vital if a board is to progress and adapt as regulatory expectations and operating environments evolve. Support should be given to trustees to ensure their knowledge and skills also develop.

A well-structured away day can be an effective tool when it comes to identifying areas that require improvement, as well as those that are successful. Similarly, a skills audit can identify gaps in trustees’ knowledge and help a board plan future training opportunities.

In short, investment in trustee development is an investment in the charity itself.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.