What is the purpose of the Charity Governance Code and who should apply it?

• A. It provides best-practice governance standards for charities to improve accountability and performance; applicable to charity boards.
• B. It imposes penalties for governance failures
• C. It regulates fundraising campaigns only for large charities
• D. It sets minimum salaries for senior managers

Answer: (A)

The concept here is that the Charity Governance Code provides voluntary, best-practice standards for how charities should govern themselves to improve accountability and performance, and it is intended for charity boards to apply. It helps boards assess areas like leadership, accountability, financial oversight, risk management, and transparency, so they can strengthen governance and demonstrate good stewardship to funders and the public. It isn’t about penalties, it doesn’t regulate fundraising campaigns, nor does it set salaries for senior managers.