A milestone for third sector leadership: the new 2025 Charity Governance Code

Professor Andrew Corbett-Nolan sees ‘practical, forward-looking enhancements’ in the new code

We have a new Charity Governance Code, and GGi welcomes this as timely and important.

In the ever-evolving landscape of the voluntary sector, our charities navigate funding pressures, political shifts and heightened scrutiny. In this fast-changing environment, robust governance remains the cornerstone of sustainable impact. But as the context changes so too does the way in which boards need to apply the immutable principles of good governance and for charity trustees, this new code is both practical and thoughtful.

I write this not only as someone who reviews how organisations gain the best impact from governance but also as a long-standing charity trustee. For the last 30 years I have more or less continuously sat on the boards of charities. Currently I am the chair of the wonderful gallery Hastings Contemporary and a board member of the International Opera Awards – not just the ‘Oscars of Opera’ but a grant-giving charity that provides bursaries to young performers as they take those early steps as opera professionals. This new code is going to be invaluable.

But why am I so excited? Partly the anticipation. The new code is the first major revision since 2017. It arrives at a pivotal moment—just as the sector grapples with the ongoing shock waves of post-pandemic recovery, digital transformation and a complete crisis in funding. Drawing on extensive consultation with trustees, leaders, and regulators, the new code not only reaffirms the timeless principles of good governance but elevates them with practical, forward-looking enhancements. It has been crafted as relevant to charities of all sizes, reminding us that effective stewardship is not a compliance exercise but a dynamic commitment to purpose and people.

Foundational change

At its heart, the 2025 code retains its voluntary, non-regulatory ethos, complementing Charity Commission guidance while offering a flexible framework for self-reflection. Yet, the improvements are profound, making it more accessible and actionable. Perhaps most notably, the code now comprises eight principles, up from seven, with a new ‘Foundation principle’ as the bedrock. This addition explicitly charges trustees with investing time in understanding their legal duties, the charity's governing document, and conflict management—addressing a common blind spot where basics are assumed but rarely revisited. "You know it's working when trustees uphold and promote standards of good governance," the code states, underscoring that strong foundations foster trust both internally and with stakeholders.

Another standout evolution is the explicit emphasis on trustee behaviours as a dedicated subsection for each principle. Gone forever, we hope, are the days of governance as just process checklists; the 2025 version spotlights the ‘how’ of decision-making—behaviours such as curiosity, respectful challenge, and leading by example. For instance, under Leadership, trustees are encouraged to ‘model expected behaviours and lead by example’, while in Ethics and Culture, they must ‘foster a culture where everyone feels safe and respected’.

This relational lens responds directly to feedback from the 2024 consultation, where users sought tools to cultivate inclusive, high-trust boardrooms. This is both a subtle and powerful shift; GGi has always insisted that governance thrives not just on structures and policies, but on the human dynamics that bring them to life.

The code also sharpens its focus on contemporary challenges. For instance, Managing Resources and Risks now addresses everything from AI tool policies and cyber safeguards to ethical investments aligned with charitable values. Decision Making has been decoupled from risks for clearer focus, promoting ‘orderly and effective use of [board] time’ through reserved matters and escalation thresholds. These updates ensure the code feels relevant to today's charities, whether small community groups or large national players, with tailored notes for ‘large charities only’ (e.g., the kind of triennial external evaluations that GGi is routinely asked to carry out).

Aligned with GGi

What excites us most at GGi is how seamlessly the 2025 code aligns with our mission: empowering charity leaders to build resilient, high-performing governance. As specialists in the voluntary sector, we have long championed the idea that good governance is lean, adaptive, and people-centred—principles now echoed in the code's streamlined structure and behavioural imperatives. Our work directly supports charities in translating these ideals into practice, particularly through three interconnected services: periodic independent governance reviews, targeted board development, and fostering lean governance.

Independent governance reviews form the backbone of our work with charities. Like the code's call for regular reflection—embedded across principles, from tracking decisions to triennial external checks—GGi's reviews are recognised for their objective, independent lens. These developmental assessments dive deep into board dynamics, structures, and practices, delivering insightful reports that spotlight strengths and opportunities.

Boards often tell us how useful an insight a review provided to their stewardship of an organisation they love. In a sector where trustees juggle multiple roles, such periodic sense-checks disturb possible groupthink and prevent drift, ensuring alignment with the code's outcomes, such as optimised resource use and ethical decision-making.

Building great boards

The code recognises the importance of developing board practice and a good board development programme should be designed to nurture the ‘right mix of skills, knowledge, and experience’ the code demands under Board Effectiveness. Great boards do not just happen; they are carefully built as impactful teams that embrace diverse perspectives and continuous learning. Drawing on the code's behaviours focus, good board development should support trustees in navigating challenges like power imbalances or constructive debate, turning potential conflicts into growth. As one example from many, a recent GGi client, a mid-sized health charity, credited our development programme with transforming their board from siloed to synergistic, directly boosting their EDI progress.

At the core of our own mission is GGi advocacy for lean governance—streamlining processes without sacrificing rigour, much like the code's emphasis on proportionality and efficient agendas. I am proud of our work to guide boards to clarify delegations, automate reporting, and focus energy on strategic priorities, freeing trustees for what matters: advancing the mission. In an era of squeezed resources, lean approaches should not be seen as optional but as essential for sustainability, mirroring the code's risk tolerances and reserves policies.

Importantly, the 2025 Charity Governance Code is not just a document but an invitation to elevate. Charities are encouraged to adopt an ‘apply OR explain’ stance in their annual reports, sparking honest conversations about progress.

At GGi we would say almost the same. Our stance has always been ‘apply AND explain’ – take the principles of good governance and apply them thoughtfully to your own particular context and then explain how this is being impactful to furthering your mission.