The New Charity Investment Governance Principles (CIGPs) were introduced in January 2025 by the Charity Finance Group to help charities to improve the management of their investments.

These principles provide a structured approach for trustees to make informed and ethical decisions that align with the charity’s mission while ensuring longer-term financial sustainability.

One of the key components of the new guidance is the enhanced role of trustees who are now required to take a more active approach in overseeing charity investments, ensuring they understand the implications of investment decisions. Charities are also encouraged to integrate Environmental, Social, and Governance (ESG) factors into their investment practices, ensuring their decisions reflect the charity’s values, such as avoiding investments that might undermine their mission or harm the environment.

The guidance stresses the need for greater transparency in reporting investment decisions. Charities are now urged to provide clear and comprehensive reports that demonstrate how their investments align with their mission. The principles also focus on strengthening governance by encouraging charities to review and improve their internal controls, ensuring robust oversight of investment activities.

The new principles will help charities strike a balance between ensuring financial sustainability and adhering to ethical standards. By following these principles, charities can maintain the trust of their supporters while navigating the challenges of a complex investment landscape.

Charities are strongly encouraged to review their internal processes and prepare for the upcoming changes to avoid delays or complications. For more information on the new regulations and how to comply, charities can visit the OSCR website.