ACEVO, Association of Chairs and nfpResearch have today published new research into charity board behaviours and dynamics, revealing generally positive CEO and chair relationships but persistent gaps in board effectiveness, behaviour and governance practice.
The research, based on responses from chairs, CEOs and trustees across the UK, highlights the central role that relationships and behaviours play in effective governance.
Key findings
- 70% of CEOs and 83% of chairs rate their relationship as strong
- One in five respondents describe the relationship as mixed
- Nearly half (46%) rate their board 8 or above out of 10 for effectiveness, but only 4% give the top score
- Just 42% of respondents say their board is open to risk, with chairs consistently more positive than CEOs
- 59% have experienced challenging board behaviour
- Only 25% of organisations have a chair appraisal process
Most CEOs and chairs report high levels of trust, honesty and open communication. These relational factors are the strongest drivers of effective leadership and board performance.
However, chairs are consistently more positive than CEOs across every measure. CEOs are less confident in board effectiveness, trustee behaviour, and openness to risk, with nearly one in three describing their board culture as cautious.
Nearly six in 10 respondents report experiencing difficult board dynamics, including dominant individuals and role confusion. These challenges are more felt for those new in post. Despite this, most remain confident that trustees would act appropriately if serious issues arise.
The research also shows that effective boards are driven by trust, communication, and the ability to have difficult conversations, with a balance of support, constructive challenge, and respect for diverse perspectives. At the same time, core governance processes, such as appraisal, induction and board reviews, remain underdeveloped in many organisations.
The findings highlight the need to focus on behaviours, relationships, and leadership development, as well as on structures and compliance. There is a clear opportunity for charities, regulators and sector bodies to invest in the CEO-chair relationship, embed consistent governance practices, and support leaders in managing board dynamics effectively.
Jane Ide OBE CEO ACEVO said: “Strong relationships between CEOs and chairs are at the heart of effective charities, and it’s encouraging that so many leaders report high levels of trust and openness. But this research also shows we can’t be complacent. Too few boards are operating at the highest level, and too many CEOs are experiencing challenging behaviours that hold organisations back.
We need to move beyond seeing governance as process and compliance, and focus much more on behaviours, relationships and leadership. That means investing in the CEO–chair relationship, building diverse and confident boards, and making sure the basics, such as appraisal, induction and board development are consistently in place.
That should always be a joint effort between the board and the CEO, with both playing an active role in these most crucial aspects of any charity’s operation. I’m proud of the range of resources and support ACEVO offers its members and the sector more widely in this context, and at a time when charities are under increasing pressure getting this right is essential to delivering the sustainable impact that is so needed.”
Liz Lowther CEO Association of Chairs said: “Having an effective board and a chair and CEO that work well together are two vital foundations for building a strong, resilient, and impactful charity. This research shows that many charities have made good progress to putting these foundations in place, but there are still gaps that need to be filled.
Where there are weaknesses, be they missing processes like inductions and appraisals, or challenging behaviours from boards and leaders, they can affect an organisation’s ability to remain strong in these times of increasing pressures and uncertainty.
We know how tough it can be for chairs and trustees, especially those from smaller charities, who are doing their best but lack support, resources, and development. We offer practical help and support for Chairs and their boards to help them addresses any weaknesses and grow in effectiveness, so they can get the best outcomes for the people and causes they serve.”
Tim Harrison Byrne, Co Director nfp Research said: “One of the most consistent patterns in this research is the gap between how CEOs and chairs see the same relationship. Chairs are more positive on almost every measure – communication, challenge, openness, board culture. That does not mean one group is wrong. But it does mean that in many organisations, the CEO and chair may have quite different experiences of working together, and neither may fully realise it. If boards are serious about improving, that gap is a good place to start.”