An Overview of Charity Governance
- a22162
- Dec 7, 2024
- 4 min read
Singapore Charity Governance
An Overview of Charity Governance
Charity governance in Singapore is a framework of principles and practices that guide the management and operation of charities. It is designed to ensure that charities are accountable, transparent, and effective in their work. The Charity Council, a statutory board under the Ministry of Culture, Community and Youth (MCCY), plays a key role in promoting good governance practices in the charity sector.
Key principles of charity governance in Singapore:
Accountability: Charities are accountable to their beneficiaries, donors, and the public. They must be transparent about their finances, activities, and impact.
Transparency: Charities must be open and honest about their operations. They should provide clear and accurate information about their governance structure, financial statements, and activities.
Effectiveness: Charities should be well-managed and have clear objectives. They should use their resources efficiently and effectively to achieve their mission.
Independence: Charity boards should be independent and free from conflicts of interest. They should make decisions in the best interests of the charity.
The Code of Governance for Charities and IPCs
The Charity Council has developed a Code of Governance for Charities and Institutions of a Public Character (IPCs) to provide guidance on good governance practices. The Code outlines six key principles:
The charity serves its mission and achieves its objectives.
The charity has an effective Board and Management.
The charity acts responsibly, fairly and with integrity.
The charity is well-managed and plans for the future.
The charity is accountable and transparent.
The charity communicates actively to instil public confidence.
The Code is not mandatory, but it is strongly encouraged for all charities and IPCs to adopt. It provides a valuable framework for improving governance practices and enhancing public trust.
By understanding and implementing good governance practices, charities in Singapore can strengthen their impact and build public trust.
Charity governance in Singapore is a framework of principles and practices that guide the management and operation of charities. It is designed to ensure that charities are accountable, transparent, and effective in their work. The Charity Council, a statutory board under the Ministry of Culture, Community and Youth (MCCY), plays a key role in promoting good governance practices in the charity sector.
Expanding on the key principles:
Accountability: Charities are accountable to their beneficiaries, donors, and the public. They must be transparent about their finances, activities, and impact. This includes:
Publishing annual financial statements and reports.
Providing information about the charity's governance structure, including the names of board members and staff.
Being open about the charity's impact and how it uses its resources.
Transparency: Charities must be open and honest about their operations. They should provide clear and accurate information about their governance structure, financial statements, and activities. This includes:
Having a clear and accessible website.
Providing information about the charity's mission, vision, and values.
Being open about the charity's challenges and risks.
Effectiveness: Charities should be well-managed and have clear objectives. They should use their resources efficiently and effectively to achieve their mission. This includes:
Having a clear strategic plan.
Measuring and evaluating the charity's impact.
Using resources efficiently and effectively.
Independence: Charity boards should be independent and free from conflicts of interest. They should make decisions in the best interests of the charity. This includes:
Having a diverse board of directors.
Having clear policies and procedures for managing conflicts of interest.
Making decisions based on the best interests of the charity, not on personal interests.
The importance of charity governance in Singapore
Good charity governance is essential for ensuring that charities are accountable, transparent, and effective. It helps to build public trust in the charity sector and ensures that charities are using their resources wisely.
Additional information
The Charity Council provides a number of resources to help charities improve their governance practices. These resources include:
The Code of Governance for Charities and IPCs.
Guidance notes on the Code of Governance.
Training courses on charity governance.
A helpline for charities to seek advice on governance issues.
Charities in Singapore are also encouraged to seek accreditation from the Charity Council. Accreditation is a voluntary process that recognizes charities that meet high standards of governance and accountability.
By understanding and implementing good governance practices, charities in Singapore can strengthen their impact and build public trust.
Additional resources:
Code of Governance for Charities and IPCs: https://www.charities.gov.sg/Pages/Charities-and-IPCs/Manage-Your-Charity/Code-of-Governance-for-Charities-IPCs.aspx
Charity Council website: https://www.charities.gov.sg/
MCCY website: https://www.mccy.gov.sg/
How Bestar can Help
An Overview of Charity Governance
Bestar plays a crucial role in ensuring effective charity governance. Here's how we can help:
Governance Framework:
Develop and review governing documents like constitutions, articles of association, and policies and procedures.
Ensure compliance with relevant charity laws and regulations.
Advise on best practices in corporate governance, including board composition, roles, and responsibilities.
Risk Management:
Identify potential legal and regulatory risks and develop mitigation strategies.
Conduct risk assessments and implement appropriate controls.
Advise on insurance coverage to protect the charity's assets and operations.
Fundraising and Grants:
Review fundraising strategies and ensure compliance with fundraising regulations.
Advise on grant applications and reporting requirements.
Negotiate contracts with donors and grantors.
Employee Relations:
Advise on employment contracts, disciplinary procedures, and other HR matters.
Assist in managing employee relations and resolving disputes.
Financial Management:
Develop and implement sound financial policies and procedures.
Prepare accurate financial statements and budgets.
Monitor financial performance and identify potential risks.
Fundraising and Grants:
Assist in developing fundraising strategies and grant proposals.
Manage grant funds and ensure compliance with grant terms and conditions.
Monitor the financial impact of fundraising activities.
Tax Compliance:
Ensure compliance with tax laws and regulations, including filing tax returns and claiming tax exemptions.
Advise on tax-efficient fundraising and investment strategies.
Investment Management:
Manage the charity's investments to maximize returns while minimizing risk.
Advise on investment policies and procedures.
Monitor investment performance and make necessary adjustments.
Audit and Assurance:
Conduct internal and external audits to assess the charity's financial health and compliance.
Provide assurance to stakeholders that the charity's financial information is accurate and reliable.
By working closely with Bestar, charities can enhance their governance practices, mitigate risks, and ensure the effective use of their resources to achieve their mission.
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