Good Governance Guide

Governance and Good Practice

Charities play an important role in Guernsey life. The public expects charities to:

• Act in the best interests of their beneficiaries (the people or causes they support)

• Follow the law

• Use donations wisely and effectively

These best practice guidelines set out simple steps to help you run your charity well.

1. Your charity’s aims and governing document

Every charity should have a clear governing document (such as a constitution, trust deed, or articles of association). This sets out:

• The charity’s aims

• The rules for how it is run

Your governing document should be reviewed regularly to make sure it stays up to date.

See the Guernsey Registry guidance on governing documents:

For constitutions and further advice, you can also look at the UK Charity Commission guidance.

2. Managing Officials

Managing officials, depenend on the set up of your charity also referred to as trustees, directors, or committee are responsible for ensuring the charity is run effectively, legally, and in line with its purposes. They must:

• Be fit and proper persons

• Not be bankrupt, disqualified as a company director, or convicted of offences involving dishonesty or deception

• Act only in the best interests of the charity, not themselves

• Be re-appointed or re-elected at least every three years

Unless the charity is set up as a limited company, managing officials may be personally liable for the charity’s debts.

The minimum requirement of managing officials is:

• Voluntary registered charities and branches must have at least two managing officials to fulfill three roles (chair, secretary, treasurer).

• Compulsory registered charities must have at least three managing officials.

• Internationally active charities must have at least 4 managing officials.

• The treasurer must not be personally connected to at least one of the other managing officials (not related or living together).

All managing officials are required to register their details with the Guernsey Registry and will be given a Person Identification Number.

3. Managing the Charity’s Activities

Charities should:

• Understand the needs of their beneficiaries and direct activities towards meeting those needs

• Hold regular meetings to review progress

• Assess and manage financial risk

• Hold an Annual General Meeting (AGM) each year to:

  • Present and approve accounts

  • Elect Managing Officials

  • Allow members and beneficiaries to ask questions and give feedback

4. Integrity and Conduct

Funds must only be used to achieve the charity’s stated aims.

Money raised for a specific appeal must only be used for that purpose.

Managing officials must act in the best interests of the charity, regardless of how or by whom they were appointed.

Any payments to managing officials (other than reimbursed expenses) should be agreed at the AGM.

Managing officials must also declare any conflict of interest.

5. Financial Management

The managing officials are responsible for ensuring the charity has proper financial records, controls, and reporting.

One managing official must act as treasurer, keeping accurate records of the charity’s finances, preparing annual accounts, and presenting them to it's members at their AGM. It is a legal requirement for all charities and NPOs to have a treasurer who is not connected to at least the one of the other appointed key roles.

Charities with income or assets over £5,000 are strongly advised to have their accounts independently reviewed by an accountant.

6. Risk Management

Managing officials should consider the risks of any activity the charity undertakes and take steps to reduce them. This includes ensuring those involved are suitably skilled, trained, and trustworthy.

Internationally active charities are required to file an anti-financial crime policy.

7. Legal Compliance

Charities must follow all relevant laws and regulations.

8. Reputation

Charities should carry out fundraising and publicity in ways that protect their own reputation and that of the charitable sector in Guernsey.

9. Self-assessment

It is good practice for charities to carry out a self-check each year to see how well they are following these best practice guidelines and meeting their legal obligations.

This information is offered to help charities adopt best practice. It is not comprehensive, and charities should take professional advice where needed. The Association of Guernsey Charities accepts no responsibility for reliance on these guidelines.