PUBLIC CONSULTATION ON SIMPLIFICATION OF CODE OF GOVERNANCE FOR CHARITIES AND INSTITUTIONS OF A PUBLIC CHARACTER

Public Consultation on Simplification of Code of Governance for Charities and Institutions of a Public Character

INTRODUCTION

1. The Charity Council invites the public to provide feedback on the proposed simplified Code of Governance for Charities and Institutions of a Public Character (IPCs). This public consultation will run from 17 May 2022 to 16 June 2022.


BACKGROUND

2. The Code of Governance for Charities and IPCs (Code) serves three main objectives: 

a. enhance charities’ effectiveness by sharing recommended good governance and management practices; 

b. provide guidance to Board members to help them carry out their duties as fiduciaries (representatives entrusted to act in the interests of the charity); and

c. boost public confidence in the charity sector by setting the standards of good governance for charities to aspire towards.

3. The Code, introduced in 2007, was updated in 2011 and 2017. In 2021, the Charity Council sought to simplify the Code to continuously introduce best practices for good governance, to keep it relevant to the charities and to help charities apply the Code more effectively. This Code is targeted to be launched in early 2023.

4. Under the purview of the 8th Charity Council, the Code of Governance Sub-Committee was formed in July 2021. The Sub-Committee is headed by Mr Ang Hao Yao, Member of the Charity Council, and comprises 12 members who are representatives from charities /IPCs, professional bodies and academia. Please refer to Annex A - Composition of Code Sub-Committee Members. 

5. The Sub-Committee aims to:

a. Simplify the Code; Adopt a Principle-Based Approach 

• allow different sectors to exercise greater flexibility in applying the Code and to address their sector specific needs; and

• encourage the charities to undertake a more thorough review of their governance standards by a deeper understanding of the underlying principles, instead of it being just a “ticking the guidelines” exercise.

b. Review the Governance Evaluation Checklist (GEC) to be aligned with the simplified Code and identify the most appropriate way to capture charities’ adherence.

PUBLIC CONSULTATION

6. The Charity Council would like to seek public feedback on the draft simplified Code and GEC (refer to the Summary and Annex B). Should you wish to refer to existing Code of Governance 2017, please refer to Annex C. 
 
7. All charities and interested members of the public are invited to provide comments and feedback on the proposed simplified Code of Governance from 17 May 2022 to 16 June 2022. 

8. The comments and feedback could be submitted via REACH at this link: https://go.gov.sg/feedbackcog22 or a survey form at this link https://go.gov.sg/cogconsult2022 or via email to: charity_council_sec@mccy.gov.sg with the subject: “Consultation on Proposed Simplified Code of Governance”.

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