What are the hallmarks of a good charity. Boy that is hard. Easier to know what are the hallmarks of a bad charity. Well luckily the UK Charity Commission has come up with the following 6 hallmarks for a good charity. Except for the English accent, these hallmarks would seem to be equally relevant and useful here in Canada. Staff and directors of charities might find it useful to read the hallmarks and ask ‘does our charity live up to this?’. By the way this is not pass/fail – it is more a matter of continual improvement no matter how good we are.
Hallmark 1: Clear about its purposes and direction
An effective charity is clear about its purposes, mission and values, and uses them to direct all aspects of its work. In order to demonstrate this, the charity:
Hallmark 2: A strong board
An effective charity is run by a clearly identifiable board or trustee body that has the right balance of skills and experience, acts in the best interests of the charity and its beneficiaries, understands its responsibilities and has systems in place to exercise them properly.
In order to demonstrate this, the charity:
Hallmark 3: Fit for purpose
The structure, policies and procedures of an effective charity enable it to achieve its purposes and mission and deliver its services efficiently.
In order to demonstrate this, the charity:
Hallmark 4: Learning and improving
An effective charity is always seeking to improve its performance and efficiency, and to learn new and better ways of delivering its purposes. A charity’s assessment of its performance, and of the impact and outcomes of its work, will inform its planning processes and will influence its future direction.
In order to demonstrate this, the charity:
Hallmark 5: Financially sound and prudent
An effective charity has the financial and other resources needed to deliver its purposes and mission, and controls and uses them to achieve its full potential.
In order to demonstrate this, the charity:
has policies to control and manage its reserves, investments and borrowing, taking professional advice where needed;
Hallmark 6: Accountable and transparent
An effective charity is accountable to the public and others with an interest in the charity (stakeholders) in a way that is transparent and understandable.
In order to demonstrate this, the charity:
Mark Blumberg is a lawyer at Blumberg Segal LLP in Toronto, Ontario. He can be contacted at mark@blumbergs.ca or at 416-361-1982. To find out more about legal services that Blumbergs provides to Canadian charities and non-profits please visit www.canadiancharitylaw.ca or www.globalphilanthropy.ca
This article is for information purposes only. It is not intended to be legal advice. You should not act or abstain from acting based upon such information without first consulting a legal professional.
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