How Does Trusted Standard Assessment Improve Governance in Charity & Voluntary Organisations?
Author: Ann Coxall, Trusted Standard Assessor
Effective governance is the foundation of every successful charity, voluntary organisation and social enterprise. It provides the leadership, accountability and oversight needed to ensure organisations remain true to their purpose while making informed decisions about their future. Strong governance enables trustees to manage risk, oversee resources responsibly and provide strategic direction with confidence.
Good governance is not about creating more paperwork. It is about giving trustees the confidence, information and framework they need to make sound decisions in the best interests of their organisation.
My 15 years' experience as an assessor, and 30 years of working at senior level of charities, in local, regional and national organisations, has shown me that organisations with the strongest governance are not necessarily the largest or those with the most detailed policies. They are organisations where trustees understand their responsibilities, receive good-quality information and are confident enough to ask constructive questions.
This matters particularly in times of change. Pressure can expose weaknesses that may previously have gone unnoticed. Strong governance helps organisations identify and mitigate those weaknesses before they become serious problems, making them better placed to respond to change and remain resilient.
Whether your organisation is well established or developing its governance arrangements, investing in good governance helps build confidence among trustees, staff, funders, regulators and the communities you serve.
What is good governance in charity and voluntary organisations?
Charity governance is the framework through which trustees direct and oversee their organisation. It includes the systems, policies, behaviours and decision-making processes that ensure the organisation fulfils its charitable purposes, complies with legal and regulatory requirements and uses its resources effectively.
Good governance is created by people who understand their responsibilities, ask thoughtful questions, listen to different perspectives and make decisions that reflect the organisation's values and purpose.
Governance should enable an organisation, not burden it with unnecessary bureaucracy. Strong governance means putting in place practical structures, clear responsibilities and a culture that enables trustees and leaders to make informed decisions with confidence.
Good governance is also about how boards make decisions. Decisions should be evidence-based and supported by professional advice when required. Trustees need good-quality information that enables them to ask the right questions and demonstrate appropriate due diligence.
Boards are not a rubber stamp. Their role is to provide constructive challenge, ask searching questions and satisfy themselves that recommendations are supported by evidence.
What are the risks of poor governance?
Poor governance can affect every part of an organisation. Without clear oversight and effective decision-making, charities can lose strategic direction, fail to identify risks and make decisions without sufficient evidence. Trustees may be unclear about their responsibilities, conflicts of interest may not be managed effectively and important legal or regulatory requirements can be overlooked.
Poor governance rarely begins with one major failure. More often, it develops gradually through unclear responsibilities, weak oversight, inadequate information or a lack of constructive challenge around the board table. Left unaddressed, these weaknesses can accumulate.
The consequences can be significant, including financial difficulties, reputational damage, loss of confidence among funders and partners, regulatory intervention or, ultimately, failure to deliver the organisation's charitable purposes.
Good governance helps prevent these problems by providing a clear framework for accountability, oversight and informed decision-making.
How does Trusted Standard support good governance?
Trustees set the tone for their organisation. The board creates the culture, establishes the governance framework and ensures good decision-making runs through every aspect of the organisation. It is responsible for strategic direction, oversight and ensuring that activities remain aligned with the governing document and charitable purposes.
Trusted Standard provides a framework that helps organisations consider their legal and regulatory responsibilities, decision-making and oversight of risk. But it is not simply about compliance. The framework encourages trustees to ask themselves important questions:
- Are we doing what we should be doing?
- Are we compliant?
- Are our decisions supported by evidence?
- Do staff understand how governance affects their work and decisions?
- Does the way we work promote good governance and reduce the risks of poor governance?
The Trusted Standard criteria help boards consider these questions systematically. The self-assessment is followed by objective external evaluation from assessors with practical experience, providing constructive challenge, identifying good practice and highlighting opportunities for continuous improvement.
What are the benefits of following the Trusted Standard framework?
A strong governance framework helps ensure that:
The organisation operates within its governing document and charitable purposes.
Trustees maintain an appropriate strategic focus.
Legal and regulatory requirements are met.
Decisions are supported by evidence and professional advice where appropriate.
Decisions reflect the organisation's values and purposes.
Appropriate due diligence takes place before significant decisions are made.
How does Trusted Standard encourage continuous improvement?
Good governance is never finished. Organisations change, legislation develops and new challenges emerge. Boards therefore need to review both individual and collective performance and the effectiveness of their governance arrangements.
Trusted Standard encourages boards to reflect on questions such as:
- Were our decisions consistent with our governing document?
- Were decisions based on evidence and were the reasons properly documented?
- Did we carry out appropriate due diligence?
- Did trustees receive sufficiently clear information to make informed decisions?
- Did we obtain professional advice where necessary and record this appropriately?
- Were our decisions consistent with our values?
- Did every trustee have the opportunity to contribute and challenge?
The strongest boards recognise governance as a process of continuous learning, reflection and improvement. Trusted Standard reinforces this through ongoing contact with accredited organisations and annual discussions about progress and areas for development.
Effective governance does not guarantee success, but it creates the conditions in which success is much more likely.
How Does Trusted Standard Support and Enable Good Governance?
Trusted Standard helps organisations strengthen their governance through a nationally recognised framework that supports good practice, continuous improvement and independent assessment. It encourages practical and proportionate governance arrangements that enable trustees to fulfil their responsibilities, make evidence-based decisions and build stronger, more resilient organisations.
Trusted Standard's robust processes provide a practical framework across eleven areas of organisational activity, encouraging organisations to examine how they work, demonstrate good practice and identify opportunities for improvement.
Learn more about Trusted Standard accreditation or download the Welcome Pack, or speak with a member of the team to discuss how Trusted Standard could support your organisation.
Written by Ann Coxall
Ann Coxall is a Trusted Standard Assessor and Verifier with extensive experience of governance and organisational development across the charity sector. She has assessed more than 70 charities and voluntary organisations, identifying good practice and opportunities for continuous improvement. Ann also brings practical board-level experience as a Company Secretary and from previous trustee and voluntary governance roles.
Frequently asked questions
What is Trusted Standard accreditation?
Trusted Standard is a nationally recognised accreditation designed specifically for charities, voluntary organisations, community groups and social enterprises. It is owned by NCVO and delivered by the Growth Company.
The framework supports organisations to demonstrate good governance and a commitment to continuous improvement. Accreditation provides independent assurance that an organisation is operating effectively and delivering value to its stakeholders.
Can Trusted Standard improve governance?
Yes. By working through the criteria, boards and staff develop a clearer understanding of good governance and how it applies to their organisation. The Standard helps organisations consider their governing document, legal and regulatory responsibilities and the practical arrangements needed to demonstrate effective governance.
How does Trusted Standard assess governance?
Your organisation will undergo an external assessment which involves gathering evidence, reviewing documentation and interviewing staff, board members and volunteers. This is a two-stage assessment process. The first stage comprises a desktop review and, upon successful completion of this, the organisation will progress to the next stage of the assessment, namely an on-site (or remote) assessment.
The external assessment will be carried out by our Trusted Standard assessors – members of the voluntary and community sector who are trained and supported to carry out assessments of organisations against the Trusted Standard.
Is Trusted Standard suitable for charities and community organisations?
Yes. Trusted Standard is designed specifically for charities, voluntary organisations, social enterprises and community groups seeking to demonstrate good organisational practice and a commitment to continuous improvement.
Why is independent assessment valuable?
Independent assessment provides an objective view of how an organisation is operating. It can confirm areas of good practice while identifying opportunities for development that may be harder to recognise from within the organisation. This provides assurance to trustees and stakeholders and supports continuous improvement.