Question
Suzette became a trustee of Hope several months ago, a U.S. charity that promotes educational and cultural initiatives for under-privileged children. Suzette was invited by
Suzette became a trustee of Hope several months ago, a U.S. charity that promotes educational and cultural initiatives for under-privileged children. Suzette was invited by the chairman of the board, a long-time friend, to join the board of trustees. Suzette has started to learn about the charity's activities in the period since her appointment; however, there are still aspects of operations and funding about which she is not entirely clear. There is some disagreement among the trustees as to whether education should be the main area of activity for the charity or whether it should focus more on cultural activities. Since her appointment, the board of trustees has met only twice, and Suzette now understands that many of the policy choices are made by the organization's chief executive and his small management team. Suzette feels she's done very little as a trustee since her appointment. She is also upset that she has been asked twice to find people or businesses to promote fundraising days, which she does not consider to be within her area of responsibility. She is aware that in the past year, HOPE has suffered from a decline in funding as well as increasing administrative costs. She also believes that not enough members of the public are aware of HOPE or its operations and that the lack of publicity may cause falling revenues. Revenues and expenses are areas in which she believes trustees should be more involved with the charity 's work. You are the newly appointed HOPE Trustee Secretary, and Suzette has expressed to you her concerns. You are advising her that the voluntary and community sector has a Good Governance Code and that it would be appropriate to raise her concerns with the chairman and chief executive about compliance or non-compliance with this Code.
- Explain briefly the reasons for the development of corporate governance-type guidelines for entities in the voluntary sector, such as charities.
- Discuss the ways in which HOPE may be failing to apply these principles to its governance.
- Advise Suzette on measures that she and the other trustees might take to fulfill their role as trustees of HOPE more effectively
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