The revised Code has reduced the number of tiers from four to two, by grouping Small and Medium non-IPC charities in Tier 1, and all IPCs and Large non-IPC Charities in Tier 2.

Changes in Tiers

Tier 2 charities are subjected to additional guidelines as IPCs must be held to higher standards of accountability as they enjoy benefits from their IPC status. Large non-IPC charities have a gross annual receipts or expenditure of $10 million or more and should have sufficient resources to put in place the necessary measures to comply with the Code.

Tier 2 charities will be subjected to additional guidelines under each principle. For example:

(a) The term limit for all Board members should be set at 10 consecutive years or less. Re-appointment to the Board can be considered after at least a two-year break.

(b) The charity should also measure the impact of its activities, review external risk factors and their likelihood of occurrence, and respond to key risks for the sustainability of the charity.

(c) Implement a media communication policy to help the Board and Management build positive relationships with the media and the public.

Non-IPC charities that have gross annual receipts or total expenditure, whichever is higher, of less than $50,000 are excluded from the submission of the GEC. The Charity Council recognises that smaller charities may face resource constraints and hence may not be able to implement all the Code principles. However, these charities are still strongly encouraged to refer to the Code and apply the principles as good practice.