Taking a fresh look at governance with the updated Charity Governance Code

The Code has for many years been an important and widely-used resource for good governance in the education and charity sector, offering a practical tool to help charities operate effectively, transparently, and with integrity. The Code, put together by a cross-sector steering group, is neither law nor regulation, but seeks to set out governance best practice. It is understood though that there is a great variety of charities, including independent schools, and in practice not all charities will be able to meet all of the Code's expectations. The Code suggests therefore that charities "apply or explain" - that they apply the Code or explain why they are not doing so.

Governors will find that the updated code is easier to use and contains more practical recommendations than the previous version. Long descriptions and unnecessary information have been removed from the main Code document itself (with some information now showing on the Code's website). Each of the Code's eight principles are now elucidated with clear lists under the following headings: You know it’s working when; Behaviours; Policy, processes and practice; Suggested evidence and assurance - Governors will find this more accessible and to-the-point. Also, where before there were two codes (for smaller and larger charities) now there is just one code, with occasional add-ons for larger organisations and those with staff.

There are some updates and developments in the material itself, including:

• Whereas the previous Code briefly mentioned the trustee (Governor) role and charity context as the Foundation of good governance, the new Code elevates this idea of the Foundation to principle level and goes into much greater depth on the basics that underpin all charity governance.  
• The new Code is clearer in calling on trustees to consider the charity's environmental responsibilities.
• The EDI section is clearer and shows a development in how EDI is approached generally (indeed it is now titled Equity, Diversity & Inclusion) and there are useful suggestions around working to targets and being transparent about it.

Nevertheless, the biggest development with the new Code is how accessible and helpful it is, being now almost entirely made up of short lists of real-world expectations and recommendations. We understand that the Code's steering group is looking to take this one step further in 2026 by making an some aspects of the Code interactive. 

What can Governors and independent school leaders do now?

• Take a look at the new Code: see where your school and board might best adapt and adopt new approaches.
• Governance audit: look at your current practices against the Code's principles and expectations, and consider addressing any gaps.
• Communicate with stakeholders: Be transparent about how your school and board are implementing any updates and the positive impact these changes will have.

As we emerge from Winter, the updated Charity Governance Code provides the sector with a great tool for achieving strong governance.  

For more information or advice please contact Alice Reeve in our Independent Schools team.