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How to govern effectively

Good governance is vital.

Governance is all about: 

  • How your organisation is run and makes decisions. 
  • Your systems, processes, policies, controls and authorities. 
  • How the leaders are held to account for decisions and outcomes.

You'll be able to meet good governance standards if you follow the five common principles that are summarised in this section. 

This will help your group to work effectively as a team. 

It's also essential to meet these standards if you want to apply for certain types of funding. 

Who's responsible for governance?

Every organisation is governed in a slightly different way.  

Governance is usually the responsibility of: 

  • Board members and trustees. 
  • Committee members. 
  • Senior volunteers or staff. 
  • Professional advisors such as an accountant or bookkeeper. 

Who's responsible will depend on the legal and managerial structures that you've put in place.

However, achieving good governance requires input from everyone involved in running your organisation and delivering its activities. 

Benefits of good governance

There are lots of benefits of having good governance. 

It will help you:

  • Create a welcoming and inclusive environment. 
  • Meet your legal responsibilities. 
  • Develop robust and reliable systems, processes, and policies. 
  • Manage risks. 
  • Make good decisions and implement them. 
  • Improve your efficiency. 
  • Make the best use of resources. 
  • Have transparent decision making and reporting processes. 
  • Improve the confidence of your people and investors. 

 

It could help you meet funding criteria

Good governance can help you meet funding requirements.

A Code for Sports Governance’, from Sport England and UK Sport, provides guidance for organisations of all sizes. Following the code is essential if you receive funding from Sport England or UK Sport.

Typically community sports clubs and groups would need to meet the requirements set out in Tier 1 of the Code, as a minimum, to be considered for funding from Sport England. 

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The five principles of good governance

There is no 'one size fits all' approach, but there are five common principles that are shared by organisations with good governance.

These are set out in Tier 1 of the ‘Code for Sports Governance’

They're also summarised here... 

1
Structure  
Your organisation should have a clear and appropriate governance structure which is led by a formally constituted decision-making body, like a board or committee.

This body should take responsibility for governance and lead your organisation effectively. The structure and decision-making processes are usually set out in a governing document such as a constitution or articles of association. 

Having the right structure provides a foundation for development, growth, and sustainability. It ensures that you can make decisions in the group's best interests, in line with your values.

It also assures stakeholders that the organisation is well run and trustworthy.
2
People
Involving people with a wide range of experiences, skills and backgrounds leads to more effective decision-making. By encouraging diversity of thought, and open debate, you can make good decisions that will help you achieve your goals. 

Recruiting and engaging a diverse range of people also helps to ensure that your organisation caters for different groups in the community. 
3
Communication
Be clear about why your organisation exists, the aims or goals, how it is managed and how it's performing. Communicating this demonstrates transparency, which is important to internal and external stakeholders. 

Taking time to understand the needs of stakeholders is important. It can help your organisation shape its strategy and ensure that stakeholders feel involved, valued and supported. 

It can also help you to promote internal democracy and give confidence to new stakeholders, potential partners, and investors. 
4
Standards and conduct  
It is important that governance practices are supported by your organisation’s culture and values, and a commitment to continuous improvement. 

By having high standards of integrity, and regularly evaluating performance, your organisation can drive improvement and increase your ability to react to issues and opportunities.

Having the right values also helps to build trust and can improve your relationships with others, including investors. 
5
Policies and procedures
It’s important for organisations to have appropriate plans, policies and processes in place.

This will help you to: 
- Comply with laws and regulations. 
- Manage and control risk. 
- Plan and manage your finances. 
- Provide sustainability.
- Build trust.
- Offer a safe, positive experience to everyone involved.