What is the Charity Governance Code and how does it affect trustees?

The Charity Governance Code is a set of voluntary guidelines to help trustees ensure effective and trusted governance. The key point? It’s a practical benchmark for good governance, produced by a steering group of charity sector leaders and endorsed by the Charity Commission, but it’s not a legal requirement – it’s voluntary. The principle is “apply or explain,” meaning you don’t have to adopt every aspect, which is especially helpful for smaller charities. First introduced in 2005, the Code has been updated regularly, most recently in November 2025.

What has changed?

• The Code now has eight clear principles, including a Foundation principle covering trustees’ core duties
• Practical examples of “what good looks like”
• Expected trustee behaviours for each principle
• One Code for all charities, with flagged expectations for larger or staffed organisations
• Recognition of modern issues: environmental responsibility, digital governance, data ethics, and AI

What does this mean for charities and trustees?

• Clearer accountability – Indicators and behaviours make governance easier to evidence
• Focus on trustee development – Training and legal awareness are now front and centre
• Modern governance matters – Digital trust, AI, and sustainability are part of the conversation
• One-size-fits-all (with nuance) – Small charities can follow the same Code confidently
• Annual reports – Charities are encouraged to include a short statement on how they apply the Code

Next steps

• Review your governance against the eight principles – or select just some to start with
• Consider whether your trustees need additional support or training on areas such as foundation duties, or specific issues such as EDI, decision making, or board effectiveness
• Update processes and policies where needed
• Prepare your annual report statement

Need help?

If you’d like help implementing the refreshed Code, or with any issues raised for you by the Code, get in touch with our not-for-profit specialists. From initial advice to tailored trustee training – we can help.

Get in touch with your usual Larking Gowen contact or email enquiry@larking-gowen.co.uk.

Jordan Stewart