Governance of Charities & NPOs
It is important for registered Bailiwick Charities & Non Profit Organisations (NPOs) to be transparent and have integrity, and for the public to be able to have confidence in the administration and management of NPOs.
Sound governance standards by NPOs are fundamental in achieving these objectives and will enable NPOs to meet the requirements of the Charities and Non Profit Organisations (Registration) (Guernsey) Law, 2008.
Sound governance also means that NPOs will have controls in place to ensure that all funds are fully accounted for, and are spent in a manner which is consistent with their purpose and objectives.
Controls should be stronger where funds are disseminated by cash outside the Bailiwick. There are particular risks associated with the provision of cash and NPOs should manage the risk so that they can demonstrate that the use of the funds is consistent with their purpose and objectives. NPOs should also ensure that the funds and other economic resources are not being used in any way for: financial crime, such as fraud or corruption; for money laundering or terrorist financing purposes; or direct or indirect provision to any person listed under the Bailiwick's sanctions framework.
In some cases, the activities of Bailiwick NPOs are facilitated by associated or partner NPOs in other jurisdictions. Controls should include ensuring that associated and partner NPOs are good quality; that their use does not in any way prevent funds or other economic resources from being transmitted to the intended beneficiaries; and that funds and other economic resources are used in accordance with the Bailiwick NPO's purpose and objectives. NPOs should also have controls to ensure that the use of associated and partner NPOs does not allow for funds and other economic resources to be used for: financial crime, such as fraud or corruption; for money laundering or terrorist financing purposes; or direct or indirect provision to any person listed under the Bailiwick's sanctions framework.