Your governing document sets out your objects or purposes and how they are to be administered. The exact details of this will vary, but it should contain all the information needed to run your organisation.

Knowhow: What is a Governing Document?

GOV.UK: Setting up a charity

Any charity or company needs to file their accounts and annual report on a yearly basis at Charity Commission and/or Companies House. Late delivery will result in the issue of an automatic and substantial fine.

Annual Accounts: The company’s accounts, or financial statements as they are also called, provide details of a company’s business activity over the accounting period (usually a year). You don’t need to have your accounts examined or audited unless your charity’s governing document or the Charity Commission asks you to if you have an income less that £25k.

The confirmation statement (or annual return) involves a declaration that all the details of the company are correct as at the date of review and that all necessary filings to Companies House have been made.

Private companies must file within 9 months of their accounting reference date.

The accounting requirements for CICs are no different from other companies.

You don’t need to send an annual return if your charity’s income is under £10,000. If your income is over £10,000 you must send an annual return within 10 months of the end of your financial year.

Charitable incorporated organisations (CIOs) must complete an annual return even if their income is under £10,000.

There is no general rule of law which says that the business of charities has to be conducted at meetings. However, good guidance states that your board should meet at least 4 times per year. These details should be specified in your govening document.

It is important to review your poicies and procedures regularly to ensure that they remain fit-for-purpose. This is more relevant if there have been national changes in legislation that could affect your organisation. There are many places to stay informed about new legislation.

The specific insurences you will need depend on your assetts and activities. This could include Employer's Liability, Public Liability.

If your staff or volunteers will be working with children or vulnerable adults, by law you can get a Disclosure and Barring Service check (DBS, formerly the Criminal Records Bureau) on them. The DBS will search police records to identify people who are unsuitable for certain types of work, especially work involving children and vulnerable adults.

Succession planning is key to the long-term sustainability of an organisation. You should be looking forwards and evaluating potential risks so that you can develop the relevant aspects of you organisation in preparation. This could include development of staff in anticipation of them taking over key roles in the future.

There are great benefits to having a document that clearly outlines your plans for the next few years.

Without a clear vision, your organisation is at-risk of losing its way. People can bring different motivations and passions that start to pull the organisation in conflicting directions. Every organisation has a unique purpose to fulfil. Your board's job is to be clear what this is and to make sure that it happens.

Addressing new challenges often means finding new solutions. Leaders need to be open to change; trying new things to see projects, people and the organisation grow and develop.

There is little point having a vision if your team is unaware of it. Staff and volunteers that really understand the organisation's vision and how it relates to their role are likely to be more focussed and effective. A shared vision helps us work together for something bigger than our own personal interests.

The best way to keep your team passionate and effective is to spend focussed time as a group together. Show people that they are important by investing in them as individuals, and the team as a whole, with relevant training and development opportunities. Don't miss the opportunity to reinforce your organisation's values and purpose when you are together.

Your organisation will benefit massively from having a full, up-to-date picture of the people you want to help and the context that you operate within. Good solutions start with an evidenced definition of the problem. Whatever your organisation's size, you can be more effective in responding to local needs by knowing your community better.

If you don't collect evidence, how will you know whether your organisation is succeeding or failing. There are many great ways to monitor the impact you are having; the right tools for you will depend on your organisation's size and the nature of your work. Sharing evidence of your impact is a great motivator for staff, volunteers and supporters.

Whether you love technology or not, we live in a time where ther is an app for everything. It is important to know which tools and systems you need to deliver an efficient service. There are many options that have the potential to bring great improvements to your work.

You could have the greatest project in the world, but no one knows about it until you tell them. Marketing is about defining your target audience, finding the best ways to engage them in your story and prompting them to take action. Your marketing activity will be unique to you, but you should aim to be active, regular and relevant to your audience.

Good HR shows that you value people. Give your team clear expectations. Help them to be a positive influence in your organisation.

Whether you are starting a new project or your provision has been running for many years, the best way to improve is to have an accurate record of what you are achieving. Taking a step back to evaluate your work will give a clear picture of your actual impact. Once you know your impact, you can celebrate your hard work, or you can look for the right opportunities to grow.

As well as benefiting your organisation with a non-salaried work force, a good volunteering programme offers valuable experience for local people themselves. Think about the benefits of volunteering for your organisation when you look to recruit. Remember to celebrate your volunteers and reward their hard work.

Listening to the people in your organisation helps on many levels. If they know that you care about what they have to say, they will feel validated and valued. The information that you gain from feedback can be used to draw attention to significant challenges and issues in the organisation. It can also be used to create long-term solutions for the organisation.

As a Charity, there is a legal requirement to agree an annual budget in advance. For all organisations, projecting your income and expenditure for the year will allow you to plan ongoing activates and growth without the risk of spending money that you don’t have.

Management accounts allow you to track your progress against your budget; giving a clear indication of overspend or underspend. Sharing this up-to-date information every month gives the leadership a better insight for decision-making.

A cash flow forecast will show you any points in the year where your bank balance is looking low. This allows you time to prepare a funding strategy, target other sources of income or plan reductions in expenditure.

It’s important for every organisation to know where their income will come from.

Don't put all you eggs in one basket. Your best source of income could be your biggest risk. If you become too reliant on one or two sources of funding, you are one decision away from losing a high percentage of your income. By diversifying your income sources you are helping your organisation to become more sustainable.

This could include: individual giving, contracts, trust funds, rental income, social enterprise, regular donations from partners (e.g. local churches), business sponsorship and regular fundraising events.

In the current climate, we are seeing diminishing resources and opportunities in grants and trust funding. This means it is vital that your organisation is open to exploring other income streams. If considered, social enterprise and contract income has the potential to become a key part of your future plans.

Organisations of every size need to plan for a rainy day. Working to build surpluses and unrestricted reserves will support your sustainability and security through more difficult seasons.

Each organisation will have its own reserves policy. When it comes to grant fundraising, your chances of success will be much lower if you have over 6 months unrestricted reserves in the bank.

*Your response to this question will not affect your score.