Effective governance is the cornerstone of any successful charity. It ensures accountability, transparency, and the smooth running of operations – all of which are vital to maintaining public trust and fulfilling charitable objectives.
A recent compliance case involving Sentebale, the charity supporting children and young people in Lesotho and Botswana, brought these issues into sharp focus. The case attracted significant media attention due to the involvement of the Duke of Sussex and has now been concluded by the Charity Commission.
Key Governance Failings Identified:
The Charity Commission’s findings highlighted several governance shortcomings that led to the investigation:
- Unclear Delegation of Authority: Powers delegated to the Chair were described as “confusing, convoluted and poorly governed.” Other delegations lacked clarity and formal definition.
- Inadequate Complaint Procedures: The charity did not have robust policies or processes in place to investigate internal complaints.
- Failure to Resolve Internal Disputes: The absence of clear policies contributed to unresolved internal disputes.
- Damaging Public Communications: Public statements and criticisms aired in the media were deemed not to be in the charity’s best interests.
What can other Charities learn from the Sentebale case?
While every charity is unique, with different objectives, trustee structures, and operational models. There are universal governance principles that all not-for-profits should consider:
1. Clear Delegation and Role Definitions
Charities should establish and maintain clear terms of reference for trustees, committee members, and any honorary roles. These should outline responsibilities, decision-making authority, confidentiality obligations, and expectations around social media use.
2. Robust Dispute and Complaint Procedures
A documented policy for handling internal disputes and complaints is essential. This should include:
- Informal and formal stages of resolution;
- Clear escalation routes; and
- Designated individuals responsible for investigation and mediation
3. Thoughtful Media and Communications Policies
Charities rely heavily on their reputations to attract funding, trustees, and volunteers. While positive media coverage can be beneficial, negative publicity can spread quickly and cause lasting damage. It is therefore crucial to:
- Develop a media and communications policy;
- Set expectations around confidentiality; and
- Ensure all stakeholders understand the charity’s approach to public engagement.
Final Thoughts
The Sentebale case serves as a timely reminder that even high-profile charities can face governance challenges. Trustees should regularly review their charity’s governance framework to ensure it remains fit for purpose and compliant with regulatory expectations.
If your charity needs support with governance whether it’s drafting policies, reviewing procedures, or seeking tailored advice. Please contact our Not-for-Profit Team in the first instance at either michelle.lamberth@hc.law or Christine.Tretzmueller-Szauer@hc.law.
