David Ogilvy, Partner and Elizabeth Bremner, Associate at Turcan Connell discuss the issue of Governance vs Management of Charities. Watch David and Elizabeth discuss Governance vs Management of Charities.
Elizabeth: "The interface between the Senior Management Team of an organisation and the Chairman and Board of Trustees is an extremely complicated one. Good governance really begins with knowing where a role starts and where it ends and the relationship between the Board and the Senior Management Team needs to be managed within that."
David: "In principle, governance is all about strategy and direction, and management is all about managing the organisation on a day-to-day level. So, at one extreme, a charity, which is examining what it is all about and where it's going, will discuss those matters at Board level. Once it has decided where it wants to go, and what its strategy is, it'll delegate the day-to-day tasks to management, such as the Chief Executive and the Finance Director. So that's the theory, the practice, actually, is much more complicated. Where governance stops and management starts is probably a different point, depending on the charity. Large charities, for example, it is much clearer to see what the functions of management might be but in smaller charities, there is a little bit of 'cutting and pasting' of duties – Trustees sometimes get involved in management functions. There are perils in that, of course, and sometimes it is the only way forward."
Elizabeth: "Good management and strong governance are absolutely key to running a successful charitable organisation. So, we would strongly advise all charitable organisations to take advice in the area of employment law at all stages of the employment relationship."
David: "Turcan Connell is ranked as number one within Scotland for the provision of legal advice to charities. The reason for that is that every single person within Turcan Connell, who advises charities, is familiar with the way the charity group as a whole works, and the different disciplines, which are offered by the charity group. So, for example, when we are advising on employment law situations, we often work with our charity governance solicitors, and they often work with our tax people too, to ensure that charities are getting holistic, coherent and cohesive advice."