What is the role of governance codes in charity boards?

• A. They set minimum fundraising targets for the year.
• B. They provide principles on board composition, accountability, risk management, and decision-making.
• C. They mandate staff payroll scales.
• D. They govern only financial reporting deadlines.

Answer: (B)

Governance codes establish the standards for how a charity's board operates. They lay out principles that guide who should be on the board (composition), how the board remains accountable to stakeholders, how risks are identified and managed, and how decisions are made and recorded. This creates transparency, oversight, and responsible stewardship of resources. They aren’t about setting fundraising targets, payroll scales, or strict deadlines for financial reporting; those are handled by fundraising strategy, HR policies, and regulatory filing schedules. So the governance code provides the overarching framework for board governance rather than operational targets or HR rules.