More charities adopt Governance Code

Melanie May | 13 May 2021 | News

• Tagged with:
• governance
• Research and statistics

Adoption of the Charity Governance Code rose by over 10% in 2020 when compared to 2019, taking the adoption rate to 55% of charities surveyed by audit, tax and consulting firm RSM.

RSM analysed 85 charities with incomes of over £5m to determine whether they were demonstrating behaviours and evidence of compliance with the Governance Code. 

Over half (55%) of charities had adopted the Governance Code in 2020 when compared to 44% in 2019. In addition, the number of charities reporting on diversity, equality or inclusivity increased by over 10% from 22% to 36% now publishing formal diversity statements.

Medical and healthcare charities achieved the highest adoption rate at 69%, with housing and financial support and general charities at 67% overtaking animal and environment charities (58%) and overseas aid charities (58%) when compared to 2019; while sporting and education and training charities were at a lower 33% and 27% respectively.

Of the 85 charities surveyed:

• 55% acknowledged the Code within their annual reports, up from 44% in 2019;
• 27% of charities now provide high-quality statements on the Code, up from 20% in 2019;
• Over a third (36%) published diversity, equality or inclusivity statements; and
• Medical and healthcare charities maintained the highest rate of adoption at 69%.

Nick Sladden, RSM’s head of charities and the author of the report said:

• Charity Governance Awards open for entries with £35k prize fund (6 October 2021)
  
• Governance guide launched for UK international NGOs (28 July 2022)
  
• 2023 UK Charity Governance Awards open for entries – with new category (30 November 2022)
  

About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.