# More charities adopt Governance Code

- Link: https://fundraising.co.uk/2021/05/13/more-charities-adopt-governance-code/
- Published: 2021-05-13T08:30:00+01:00
- Author: Melanie May

**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](https://www.rsmuk.com/) 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.

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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:

> “It’s great to see a marked improvement in charities adopting the Governance Code
> which outlines seven principals of good governance to support charities to strive
> for excellence in all aspects of their organisation. Being transparent and meeting
> high ethical standards will be key to ensuring public generosity and support.
>  
> “Having good governance in place no doubt helped medical and healthcare charities
> react and effectively respond to the national emergency. Whether it was private
> hospitals repurposing space or medical charities delivering support online. Having
> a strong foundation of effective governance allows charities to be more adaptable,
> nimble and reactive to maintain organisational purpose, even throughout a global
> pandemic.
>  
> “The charity sector reflects the communities in which we live so it’s great to
> see more organisations highlighting diversity, equality and inclusion as a key
> focus. Following the introduction of this as a new principal as part of the Governance
> Code, we expect to see more charities reporting on diversity, equality and inclusion
> in 2021.”

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