3.1. Describe the governance structure of a voluntary organisation

This guide will help you answer 3.1. Describe the governance structure of a voluntary organisation.

A governance structure is the system by which a voluntary organisation is managed and controlled. It ensures the organisation operates effectively while achieving its goals. Each voluntary organisation is different, but most follow a governance structure involving roles, responsibilities, and processes.

Roles in the Governance Structure

Voluntary organisations often rely on a governing body, sometimes known as a board or committee. This body oversees decisions, sets policies, and ensures the organisation stays aligned with its purpose. Key roles within this structure may include:

• Trustees or Directors
  Trustees are legally responsible for the organisation. They ensure the organisation complies with laws and regulations. Trustees make decisions about the organisation’s strategy, finances, and policies. In some organisations, the term ‘director’ is used instead.
• Chairperson
  The chairperson leads board meetings and represents the organisation publicly. They make sure members of the governing body work together effectively.
• Secretary
  The secretary handles governance administration. They manage meetings, keep records, and ensure legal documents are up to date.
• Treasurer
  The treasurer monitors the organisation’s finances. They prepare budgets, track expenses, and report financial matters to the governing body.
• Members or Volunteers
  Apart from the governing body, members and volunteers also contribute to the organisation’s activities. While they may not always have decision-making power, their input and effort can help shape the organisation’s operation.

Structure of the Governing Body

While the structure can vary, most voluntary organisations adopt one of these formats:

• Single-Tier Structure
  In this model, the governing body takes on all the responsibilities directly. All strategic and operational decisions are handled by this group. This simple structure works well for smaller organisations.
• Two-Tier Structure
  Larger organisations often use a two-tier structure. This separates strategic oversight from day-to-day operations. For example:
• Governing Body: Focuses on planning, governance, and policy.
• Executive Team: Manages the day-to-day running of the organisation.

Legal Responsibilities

The governance structure ensures the organisation follows legal responsibilities. These responsibilities include:

• Compliance with Charity Law
  Registered charities must act within their charitable purpose. This falls under the jurisdiction of The Charity Commission in England and Wales, or similar regulatory bodies in Scotland and Northern Ireland.
• Employment Law
  If the organisation employs staff, it must meet legal obligations, such as paying the minimum wage and ensuring safe working conditions.
• Financial Accountability
  Voluntary organisations must keep accurate financial records. Trustees ensure funds are used appropriately and transparently.

Key Governance Processes

Good governance relies on clear and consistent processes to manage the organisation effectively. These include:

• Regular Meetings
  Board or committee meetings provide a space to make decisions, share updates, and address challenges. Detailed minutes are recorded to track decisions.
• Policy Development
  Policies outline how the organisation will operate. These may include safeguarding, equality and diversity, and volunteer management policies.
• Risk Management
  Risk management helps identify and address potential issues. This can involve financial risks, reputational risks, or risks to service users.
• Financial Oversight
  Trustees are responsible for budgeting, fundraising, and maintaining financial health. Regular audits may be conducted to ensure accountability.
• Open Communication
  Ensuring clear communication between trustees, staff, and volunteers promotes a collaborative environment.

Governance Documents

Key documents formalise the governance structure. These include:

• Constitution or Governing Document
  This sets out the organisation’s purpose, structure, and rules. It may define membership terms, decision-making processes, and roles.
• Annual Reports and Accounts
  Annual reports provide an overview of the organisation’s work and finances. Transparency builds trust with stakeholders.
• Policies and Procedures
  Policies provide guidance on managing the organisation effectively. They ensure consistency in decision-making and operations.

Examples of Voluntary Organisations

Different types of voluntary organisations demonstrate varied governance structures. Here are three examples:

1. Local Volunteer-Led Organisations
   A small community group may rely on a single-tier governance structure. Trustees take on multiple roles, and volunteers assist with projects.
2. Charities with Paid Staff
   Larger charities often split governance and operations. Trustees focus on strategy, while staff manage services and fundraising.
3. National Organisations
   National organisations with multiple branches may have a framework connecting local and central decision-making structures. For example, a central board might oversee regional committees.

Benefits of Good Governance

A strong governance structure offers many benefits, such as:

• Clear Accountability
  Defined roles ensure individuals understand their responsibility.
• Strategic Direction
  Governance focuses on long-term success while addressing immediate needs.
• Transparency
  Stakeholders, including donors and service users, can trust the organisation.
• Efficiency
  Processes like regular meetings and financial oversight help the organisation run smoothly.

Challenges in Governance

Despite its benefits, governance comes with challenges. Issues include:

• Recruiting Trustees
  Voluntary organisations may struggle to find individuals with the skills and time to contribute.
• Balancing Responsibilities
  Trustees often juggle their governance duties with their other commitments.
• Keeping Records
  Poor governance can result when records of meetings, finances, or decisions are incomplete.
• Internal Conflict
  Disagreements may arise between trustees, staff, or volunteers. Clear policies and communication can help address this.

Improving Governance

Voluntary organisations can strengthen their governance by:

• Offering training to trustees on legal, financial, and operational responsibilities.
• Reviewing the governance structure regularly to ensure it meets the organisation’s needs.
• Encouraging collaboration and communication between the governing body and staff.
• Seeking external advice when needed from professional organisations like National Council for Voluntary Organisations (NCVO).

Diversity in Governance

Diverse boards are more effective. They represent society better and bring varied perspectives. Including people from different backgrounds ensures decisions benefit everyone.

Conclusion

The governance structure of a voluntary organisation is a framework of roles, responsibilities, and processes. It promotes accountability, transparency, and efficiency. By describing and understanding this structure, individuals working in or with voluntary organisations can ensure their efforts contribute effectively to their goals.