On 13 April 2022, the Commissioner of Charities (COC) and the Charity Council co-organised the fifth run of the ‘In Conversation with the COC’ series which is a forum for charities to learn on good governance and management practices from industry experts and fellow charities.
Together with Law Society Pro Bono Services (LSPBS) and Centre for Non-Profit Leadership (CNPL), the COC and Charity Council discussed on Board matters including board succession plan, board renewal and diversity.
This event was conducted in a hybrid format and was attended by more than 800 participants. The full webinar can be found on the
Charity Council YouTube Channel.
Opening Address by Mr Desmond Chin, Commissioner of Charities
In COC’s opening address, he conveyed his appreciation to the charities for their service and dedication to care for their communities over the last two years which was a challenging time for charities. He also shared on the following key messages for the charities:
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Good governance is like the strong foundation of a building. It gives donors and the public much confidence that the charity is well-run and properly managed. Any weaknesses in the governance of the charity can be made known to many in a very short span of time, putting the charity in a very uncomfortable position.
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Good governance requires the charity to have a proper framework, clear policies, and established processes in managing the overall direction, effectiveness, and accountability of the charity. It is not a good to have, but a must have as it lays a firm foundation for the charity.
- The very first step to achieving good governance and to maintain continued public trust is to
bridge any legislative compliance gaps that the charity may have.
COC reminded all charities to submit all their annual reports, financial statements, and GEC requirements correctly and on time.
- Charities should also
perform due diligence checks on their board members and key officers to ensure they are not disqualified under the Charities Act.
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An effective Board is one that is clear of its role and responsibilities in leading the charity. The role of the Board is to govern, not manage. One of the Board’s first responsibility is to ensure it
has a succession plan because no one is indispensable. Timely Board renewals will help to seed new ideas and thinking and prevent ossification. Charities should
choose their Board members based on their competencies, roles they can play, and whether their motivations are right.
COC also strongly encouraged charities to reach out to various
Shared Service Partners for guidance in strengthening regulatory compliance of the charities and to tap on the training grant under the “Charities Capability Fund” (formerly called the “VWOs-Charities Capability Fund”) to support charities’ key Board members in building their skills required to prepare the charities for the changing landscape.
Panel Discussion
The event continued with a panel discussion where participants raised feedback and questions. The panel consists of:
Panellists:
- Mr Desmond Chin, Commissioner of Charities
- Dr Gerard Ee, Chairman, Charity Council
- Mr Gregory Vijayendran, SC, Chairman, LSPBS
Moderator: Mr Kitson Lee, Head, CNPL
The panel highlighted the following key points:
- There should be no difference in terms of governance in a pre- and post- Covid world because
the donors and the public expect charities to be well-run and properly managed regardless of the situation.
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Board Renewal – Charities are encouraged to refresh their Board in a timely manner to help with diversification of the Board to suit the needs of the charities.
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Board Commitment – Board members should be clear and committed to their roles and responsibilities. This should be supported with clear, formal policies and structures so that Board members understand their duties and are accountable to the stakeholders of the charities.
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Board Diversity – A diverse Board should have different yet complementary skillsets to help charities to face challenges in the changing landscape.
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Collaboration – Charities are encouraged to foster meaningful collaborations (start small first) as the collective outcome could benefit charities involved in the collaborations. However, charities should be clear and agree upon the goals, expectations and outcomes of such collaborative partnerships to avoid unnecessary misunderstandings and disputes later on.
Conclusion
The charity sector plays an essential role in our society. The office of the COC and Charity Council will continue to help charities to grow from strength to strength and fulfil their purpose of serving our communities well. Together, we can continue to build a well-governed and thriving charity sector.
Please click to download the webinar material presentation
handouts.
