Key Takeaways from the Charity Governance Code 2025

Good governance is at the heart of every strong charity. It ensures that, as Muslim-led charities, we remain true to our purpose, act with integrity, and deliver lasting benefit to our communities. The refreshed Charity Governance Code (2025) provides a practical framework for trustees and boards to uphold these responsibilities. It also reassures external stakeholders that the charity is committed to good governance and fulfilling its wider aims with transparency and accountability.

Here are 5 key takeaways for Muslim-led charities:

Know Your Responsibilities

Trustees must fully understand their charity’s purposes, governing document, and duties under charity law. This includes continuously investing time in understanding the regulatory environment in which the charity operates and promoting both individual and shared learning within the board.

A strong induction process for new trustees is essential to helping them grasp their responsibilities and the charity’s work early on, lending them support where required. Regularly reviewing board performance and taking steps to improve effectiveness helps maintain accountability and ensures the charity is well-governed.

Stay True to Your Purpose

The charity’s activities must further its charitable purpose and deliver public benefit. Trustees should balance long-term vision with practical, short-term goals, regularly reviewing programmes to ensure they remain relevant and impactful.

When a charity’s work evolves and it explores new projects, the board may need to consider amending its objects to ensure alignment with its wider mission and governing document. Likewise, understanding political activity or campaigning must serve the charity’s best interests and further its purpose, which is essential for maintaining credibility and regulatory compliance.

Foster Values-Based Leadership and Decision-Making

Trustees, especially the chair, must embody the charity’s values, setting a tone grounded in transparency, inclusivity, and mutual respect.

Boards should adopt collaborative ways of working, welcoming diverse perspectives and encouraging open discussion to inform informed decisions. This approach fosters a positive organisational culture where staff and trustees share a sense of trust and purpose, underpinned by a robust set of ethical standards.

Actively Support Equity, Diversity, and Inclusion (EDI)

The 2025 Code places renewed emphasis on creating inclusive cultures that reflect the diversity of the communities that charities serve. For Muslim-led organisations, this means embedding EDI principles from the boardroom to service delivery, ensuring that all voices are heard and valued.

Boards should actively seek trustees with varied backgrounds, lived experiences, and perspectives that enrich the charity’s work. Trustees also have a duty to understand how discrimination and social inequalities can manifest within their organisation. By platforming marginalised voices and promoting fairness and belonging, charities can lead by example in advancing social justice and community cohesion.

Manage Resources and Risks Wisely

Trustees are stewards of the charity’s people, assets, and finances. They must ensure these resources are used strategically and sustainably in pursuit of the charity’s aims.

Good governance requires appropriate financial management, robust risk assessment, and effective control frameworks. In particular, trustees should regularly identify and review key risks, taking proactive steps to safeguard the charity’s reputation, assets, and ability to serve their beneficiaries.