Thursday, 21 July 2016

Voluntary sector leaders moot new governance structure for big charities

Sir Stephen Bubb, who has just stepped down as chief executive of charity leaders’ network Acevo, and Sir Stuart Etherington, chief executive of charity umbrella group NCVO, agreed that the sector should start thinking about a different form of governance for charities that have an annual turnover of more than £100m.
Such a change could see the creation of unitary boards as standard for large charities, whereby their top managers would become directors, and the introduction of payment for non-executive directors. At present, this is allowed only by exception and in a handful of cases.
This comes after a troubled period for the voluntary sector in which many of its high-profile problems – fundraising scandals, the collapse of Kids Company andcriticism of commercial activities – have been blamed to a large extent on poor governance of bigger charities.
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