Good governance underpins great charity work. If the foundations of your organisation are strong, the better you will be placed to seize opportunities and weather challenges.
The critical need to be well run and legally sound can never be overlooked, particularly given the challenging backdrop against which many operate.
Rules, regulations and circumstances affecting the entire sector - and charities individually - are ever-changing.
Regular governance healthchecks - such as those offered by our lawyers at Lindsays, an independent full-service Scottish legal firm providing specialist support to charities and third sector organisations - can play an important part in helping charities achieve their objectives, while remaining both relevant and sustainable.
Importantly, they are tailored to your organisation, whether you are a grant-giving foundation, community sports club or service provider operating nationally.
There are a number of key governance indicators that trustees, chairs and chief executives should consider to effectively manage risks and meet regulatory requirements. These include:
Constitutional issues
- Are your documents up-to-date and do they reflect how your charity operates?
- Are you operating within the appropriate legal structure?
Board issues
- Are meetings run - and minutes recorded - in accordance with the charity’s governance documents?
- What does board diversity look like for your organisation?
- Would the organisation benefit from committees or specialist working groups?
- Are conflicts of interest readily identified and managed?
Trustee recruitment
- Do you recruit trustees in the most effective way?
- Do you address under-performing trustees appropriately?
- How do you retain and support high-performing trustees?
Finance
- Does your financial strategy match your objectives?
- Are proper financial controls in place?
- Do you have any dormant or under-utilised funds?
Fundraising
- Do trustees understand - and have they approved - the organisation’s fundraising strategy?
Property
- Are you fully utilising the space you have?
- Are there opportunities, such as lease-break options, that you can explore?
Employment
- Do you have up-to-date employment contracts which comply with current legislation?
- Do you have effective policies and procedures on equality, diversity and inclusion, whistleblowing, data protection, harassment and bullying?
- Do you have robust training programmes for staff on key legal issues, including equality, avoiding discrimination and harassment and effective data protection?
Strong strategy and well-informed professional advice has never been more important when considering all of the above - and so much more.
We offer trustee training on a variety of legal issues relating to charities, including governance, to ensure trustees are fully prepared and briefed for their responsibilities.
As charities and third sector organisations face unprecedented scrutiny of their activities and management, ensuring that good governance pillars and strong procedures are in place allows for effective steps to be taken when dealing with funding, staffing, and compliance issues.
Importantly, it also gives charity leaders a platform from which they can inspire, motivate, and ensure their organisations make a tangible difference.
Helen Kidd, Partner, Head of Charities and the Third Sector
Published 23 October 2025
