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The importance of good governance

Good governance underpins all aspects of running a successful community organisation. From the policies and procedures in place, to the people that make decisions, the governance practices will determine your long-term success and sustainability.  

There are five key principles of good governance that make up the basis of ‘A Code for Sports Governance’. 

A Code for Sports Governance, developed by Sport England and UK Sport, aims to drive improvement and development in governance practices across the sector and is split into three tiers.

Tier 1 is usually the most appropriate for community sports clubs and groups. It's been designed to ensure that models of good governance are followed, without creating additional work for those running an organisation. 

There are eight requirements which make up the five principles of Tier 1. Meeting these requirements demonstrates good governance and is a condition of public funding bodies such as Sport England (for awards of between £10,000 - £250,000). 

You'll get the lowdown on each of the five principles, and eight requirements, here.

You'll also find links to further guidance, support and templates.

If you are unsure of any of the terminology used throughout this section, then here are some definitions.  

Principles of good governance

The code

Principle 1 - Structure

Organisations shall have a clear and appropriate governance structure, led by a Board which is collectively responsible for the long-term success of the organisation and exclusively vested with the power to lead it. The Board shall be properly constituted and shall operate effectively.  

Requirement 1

The organisation is properly constituted, has a clear purpose and, if membership-based, is inclusive and accessible. Supporting resources include: 

Properly constituted: 

Clear purpose: 

Inclusive and accessible membership:  

 

Requirement 2

The governing committee meets regularly, and decision-making is recorded.

Ways to evidence include the following...  

Meeting regularly 

Recording decisions: 

 

Principle 2 – People

Organisations shall recruit and engage people with diversity of background, thought, independence, skills and experience to take effective decisions that further the organisation’s goals and best serve their communities, stakeholders and wider UK society.  

 

Requirement 3

The organisation seeks to ensure diverse viewpoints are considered and that its decision-making groups have the skills and diversity needed to operate effectively. 

Recruitment of Board/Committee members:  

Management of Board/Committee members: 

 

Requirement 4

Committee members are subject to regular election and ideally should serve no more than nine years.  

See requirement 1 links to governing documents for further information on terms of service. 

 

Principle 3 – Communication

Organisations shall be transparent and accountable, engaging effectively with stakeholders and nurturing internal democracy. 

 

Requirement 5

The organisation shares information on its governance, structure, activities, and financial position to enable stakeholders to have a good understanding of them. 

Websites 

Social media

Sharing information: 

 

Principle 4 – Standards and Conduct

Organisations shall uphold high standards of integrity, promote an ethical and inclusive culture, and engage in regular and effective evaluation to drive continuous improvement.  

 

Requirement 6

Conflicts of interest are recognised, managed by the Chair and recorded. At least three of the people on the governing committee are neither related to, nor cohabiting with, other committee members. 

Conflicts of interest: 

At least three people of the governing committee and neither related or cohabiting with other members: 

 

Principle 5 – Policies and processes

Organisations shall comply with all applicable laws and regulations; consider the social and environmental impact of their decisions; undertake responsible financial strategic planning; and have appropriate controls and risk management procedures.  

 

Requirement 7

The organisation ensures appropriate financial procedures and practices are in place and as a minimum can evidence: 

Appropriate oversight of financial planning:  

Financial decision-making and processing: 

Accounts which are independently scrutinised: 

 

Requirement 8

The organisation assesses and manages organisational risks and liabilities appropriately. 

Organisational risk management: 

Management of liabilities: