Presentation delivered to Charity and Not for Profit Sector on Governance & Ethics

1. Your
Logo
HereGovernance & Ethics
John Donnellan ACA
• Chartered Accountant
• Certified Data Protection Practitioner
• Certificate in Best Practice Charities Institute Ireland

2. Ethics & Ethos

3. Ethics & Ethos
ETHICS ETHOS
ORIGIN Derived from Laws
and Regulations
Derived from Culture
(Environmental and
Organisational)
FUNCTION Determines right or
wrong. Conduct or
misconduct
Determines Culture
or Cultural
Behaviours

4. Charities need to operate to the highest
possible legal and ethical standards at all
times. Charities depend on public trust and
opinion.
There is a need to re-engage with ethics to
meet the challenges being faced by the charity
sector to avoid a replay of the errors of the past
Ethos - Ethics

5. “An ethical dilemma is where two rights
are in conflict or you have a choice of
options all of which seem wrong but you
have to chose one of them.”

6. Trust & Transparency

7. Trust & Transparency
Why Charities are trusted?
Can you organisation stand before it’s
stakeholders and say that they can trust
them?

8. "yerra they'll never shoot me in my own county"

9. Ethical Fundraising

10. Ethical Fundraising
In September 2017 the Charities Regulator issued
a set of best practice guidelines for charities
fundraising from the public, based on the 2008
Statement of Guiding Principles for Fundraising
Currently these guidelines are voluntary but the
regulator is very clear that it is best practice and
all charities who fundraise from the public should
be adopting the practices outlined in their
document.

11. Ethical Fundraising
• Respect
• Honesty and integrity
• Transparency and accountability

12. Ethical Fundraising
Responsibilities of Charity Trustees
• The ultimate responsibility for following these
guidelines rests with the charity trustees of
each charity.
• Trustees need to ensure that fundraising
strategy and operations are reviewed annually.

13. Ethical Fundraising
Responsibilities of Management
• Appropriate training is in place as required
• Fundraisers are subject to checks to ensure
their suitability to fundraise
• Fundraisers can communicate the charitable
purpose of the organisation.

14. Ethical Fundraising
Responsibilities of Management
• If events are organised in the name of the
charity, it is vital that the organisers are aware
of the standards they are expected to meet.

16. CRA - Charities Governance Code
• Expect all Charities to meet Core
Standards
• Additional governance standards for
more complex organisations
• “Minimum standard”
• Self assess 2020 - Report 2021

17. CRA - Charities Governance Code
6 Key Principles

18. Becoming Compliant with the Code

19. Becoming Compliant with the Code
• RTFC
• Read The Full Code
• For each standard, decide what action(s) you
will need to take (comply or explain)
• Agreed the compliance record form at Board
meeting
• Set a plan, allocate tasks and review.

20. Compliance & Enforcement
Compliance and enforcement activities still
mainly reactive.
In 2018, the main areas of concern
related to –
• Governance issues (32%)
• Legitimacy of a charity (30%)
• Financial control and transparency (21%)

21. Concerns raised by year 2014-
2018

22. Board experience
• Skills GAP
• Where are your board from: Internally
from sector? External? Is there a
balance? Governance Document
specify?

23. Good Governance Practices
• Preparing board agendas
• Board papers
• Knowing and respecting the boundaries
between board and Management

24. Expectation Gap

25. Expectation Gap
We need to demonstrate our compliance
with standards.
We need more transparency.
We need stronger boards and better
governance.
We need to do it whilst providing world
class services on tighter budgets

26. Trust & Transparency
Why Charities are trusted?
Can your organisation stand before it’s
stakeholders and say that they can trust
them?

27. Trust & Transparency
The 3 Keys:
• 1 SORP Accounting
• 2 Governance Compliance
• 3 Ethical Fundraising Codes
of Practice

28. Trust & Transparency

29. Trust & Transparency
• To have confidence they need
information in words as well as
numbers. Annual report, trustees
reports, tell your story
• Professional Integrity and Scepticism of
Auditors are key

30. Advocating for your organisation

31. Advocating for your Org.
Donors and funders must understand that
spending money on consultancy & training
& risk management is hand in glove with
spending on your core services.
We will build a stronger sector, a more
trustworthy sector and secure the long-term
future for the sector.

32. Whelan Dowling & Associates
• Statutory Audit
• GRC Training – Board & Staff
• Risk Management (Training, design & implementation)
• Compliance (Training, design & implementation)
• Strategic Planning – (Design of plans & facilitation of
Workshops)

33. Whelan Dowling & Associates
email: jdonnellan@wda.ie
phone: 01-6771411