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Weak budgeting, lack of financial controls or inadequate reporting can lead to financial instability or even loss of charitable status. Boards must put in place robust financial policies, conduct regular financial audits and ensure trustees understand their financial responsibilities. Having a dedicated finance trustee or treasurer can be useful.
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Overly complex decision-making processes can slow down action, while highly centralised leadership may alienate members. Having clear governance frameworks, such as terms of reference for committees and decision-making guidelines, helps maintain both inclusivity and efficiency.
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Unmanaged conflicts of interest, such as trustees with personal or financial interests in the organisation’s work, can damage credibility and trust. Having a strong conflicts of interest policy will require trustees to declare any potential conflicts. Maintaining transparency in decision-making can reduce the risk of such conflicts arising.
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As organisations evolve, their governance structures must also adapt. However, resistance to change from existing board members, founders, or long-term volunteers can stop these necessary improvements. Organisations should foster a culture of continuous learning and improvement, conducting regular governance reviews to assess whether their structure still aligns with their mission.

Establishing a clear succession plan, encouraging trustee term limits and mentoring new board members can help ensure smooth transitions and long-term sustainability.

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