New investing principles for trustees and charity leaders launch

16 Jan 2025 News

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A new website with seven principles for charity leaders and trustees making decisions about their investments has launched today.

The Charity Investment Governance Principles (CIGPs) were developed by sector experts and umbrella bodies to reflect the outcomes of the Butler-Sloss case and complement the Charity Commission’s CC14 guidance and Charity Governance Code.

Launched in December 2023, the project is led by freelance consultant Gail Cunningham and a steering group comprising organisations such as Charity Finance Group (CFG), NCVO and the Association of Charitable Foundations.

The principles, revealed last year, are purpose of investments; leadership; integrity, decision-making, risk and control; effectiveness; equity, diversity and inclusion; and openness and accountability.

‘Significant development for charity investors’

CFG’s chief executive Caron Bradshaw said: “We’re delighted to jointly launch the CIGPs and website today. 

“This is an entirely new resource developed both for and by the charity sector.

“With these new principles, charity trustees will feel more confident when making decisions about their organisation’s investments.”

Luke Fletcher, partner at law firm Bates Wells, put forward the idea of the principles after the Butler-Sloss case.

He said: “The launch of the CIGPs marks a significant development for charity investors.

“The Butler-Sloss judgment provided legal clarity and a sure footing on which to build best practice principles for investment by charities – and now we have them, developed by charities for charities. 

“The principles provide practical, actionable guidance that empowers trustees and charity leaders to make informed, confident decisions about investments.”

Fletcher added that the principles will help trustees “invest well and generate good returns, whilst responding to some of the key challenges of our time, such as climate change”.

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