Charities draw up new code

Charities have taken the first step towards drawing up new governance guidelines aimed at maintaining public trust and confidence in the charitable sector.

At present there is no regulation of charities in Ireland which raise an estimated €500 million each year. In addition, there are no mandatory fundraising or corporate governance standards.

However, a series of public consultation meetings is under way over the development of a voluntary governance code which seeks to make charities more transparent and accountable.

A nine-member working group, drawn from across the community and voluntary sector, has published a draft governance code and is due to publish a final version later this year.

The code aims to provide guidance and a benchmark of good governance against which charities can measure themselves, as well as to clarify the roles, duties and responsibilities of board members and other governance bodies.

“There is a huge level of trust in the charitable sector and we want to maintain that,” said Deirdre Garvey, chairwoman of the working group. “We’ve seen what’s happened to corporate governance in other sectors and we don’t want that to happen here.”

The code, however, will not focus on “operational issues” such as the salary of charity chief executives or the cost of fundraising.

These issues are likely to be addressed when the State finally appoints a regulator for the charity sector, a move expected at some point next year.

“Our sector must maintain the trust and confidence on which it is built,” said Deirdre Garvey, chairwoman of the working group.

“It is therefore essential that we practice globally accepted standards of governance. It is expected of us by funders and the public – and it is what we expect of ourselves”.

The draft code is based on five principles including providing better leadership; exercising greater control over organisations; being more transparent; working more effectively; and behaving with integrity.

“The uniquely innovative aspect of the draft code is that it is firmly based on the principle of proportionality. Our sector is diverse and no two community and voluntary organisations are alike. We therefore need a nuanced and flexible approach,” Ms Garvey said.

Earlier this year a separate voluntary code on fundraising was launched, also aimed at boosting transparency and bolstering public confidence in the sector.

The consultation on governance launched today is being hosted in various locations across the country between May 16th and June 4th.

The working group is made up of representatives from Boardmatch Ireland, Business in the Community Ireland; the Carmichael Centre for Voluntary Groups; Clann Credo; Irish Charities Tax Reform Group; Disability Federation of Ireland; Volunteer Centres Ireland; The Wheel; the Corporate Governance Association of Ireland; Sheila Cahill Consulting; and Arthur Cox.

The draft code and information on the consultation process is available at governancecode.ie.