Governance

Getting Started with Governance

Good governance is what keeps a Library of Things (LoT) strong and sustainable. The best place to start is by focusing on the strengths already in your community and making sure people are involved in decisions from the beginning.

Governance isn’t just about rules and policies – it’s about working together fairly, including everyone, and building something that lasts.

What does this mean in practice?

Invite the people who might use your Library of Things to help shape it.

Ask them where it should be based, how they’d like to access it, and what kinds of things they want to borrow.

Bring local people onto your steering group so they have a real say in how it develops.

1. Choosing a Governance Structure

There are two main routes into setting up a Library of Things:

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A. If you’re already part of an existing organisation

(e.g. a community centre, housing association, or charity)

You don’t need to set up a whole new legal body.

The host organisation will hold the legal responsibilities such as insurance, safeguarding, health & safety, and finances.

What you do need is a steering group made up of local community members. This group helps shape the Library of Things, makes sure it meets local needs, and builds community buy-in.

This works best when the host organisation gives space, resources, and backing, while the steering group provides energy, ideas, and accountability to the community.

Important: If you set up only a steering group, you will need a host organisation to take out insurance, hold a bank account, and sign agreements. Always check that the LoT activity is listed on the host’s insurance schedule – don’t assume it’s automatically covered.

B. If you’re starting from scratch

You’ll need to choose a legal structure that fits your stage, size, and ambitions.

Steering Group (informal collective)

Quick to set up, flexible, builds community ownership

No legal identity, cannot hold insurance or contracts

Unincorporated Association

Simple constitution, democratic decision-making

Members may be personally liable if problems arise

Charitable Incorporated Organisation (CIO)

Legal protection for trustees, simpler reporting than a company

Slower to set up, must follow charity law
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Charitable Company Limited by Guarantee (CLG)

Strong credibility with funders, limited liability

More admin – reporting to both Companies House and the Charity Commission

Community Interest Company (CIC)

Social enterprise model, can trade and reinvest profits, limited liability

Not eligible for all charitable grants

Company Limited by Guarantee (non-charity)

Quick to set up, can convert later to CIC or charity

Fewer grant options, still Companies House admin
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Tip: Many LoTs start with a steering group/community group and then evolve into a CIC or charity as the project grows. Involve the community at each stage so the

governance reflects their priorities.

2. Maintaining a Steering Group

Base decisions on community priorities, not personal interests.

Rotate roles (chair, treasurer, safeguarding lead) to avoid burnout.

Write clear terms of reference – purpose, decision-making process, and how often you’ll review them.

Be transparent: publish minutes, keep finances open.

Celebrate community wins together to keep momentum.
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3. Decision-Making

Aim for consensus where possible.

If not, fall back to a simple majority vote.

Always record decisions so everyone is clear on outcomes.

4. Lessons Learnt

Spread responsibility – don’t rely on one or two people.

Keep written records so knowledge isn’t lost when people move on.

Use plain language so everyone can take part.

Keep checking: who is missing from the table?
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5. Skills to Look For

A good mix of professional skills, lived experience, and local knowledge makes a group stronger. Useful areas include:

Finance and budgeting

Health and safety

Safeguarding

Local networks and relationships

Fundraising and partnerships

Communications

Repair/technical skills

Conflict resolution and facilitation

6. Conflicts of Interest

Ask members to declare if they have a conflict (e.g. they supply services to the LoT).

Keep a register of conflict of interests

People with conflicts should step back from related decisions.
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7. Preparing for Disputes

Agree a code of conduct for respectful behaviour.

Use a simple process for raising concerns.

Bring in an independent mediator if needed.

Keep focus on community benefit, not individual power.
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8. Safeguarding

Write a safeguarding policy that feels real, not just paperwork.

Make sure at least one person is trained and named as safeguarding lead.

Share reporting steps clearly with volunteers and users.

9. Health & Safety

Do regular risk checks with volunteers and users.

Nominate a H&S lead but make safety everyone’s job.

Record accidents and near-misses and talk about lessons learnt.
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10. Roles & Responsibilities

If your LoT is hosted inside a larger organisation

Host organisation: Holds legal responsibilities (insurance, safeguarding, H&S, finances).

Steering group: Focuses on development, shaping the LoT, and involving the community.

Volunteers: Run day-to-day activities, support borrowers, and care for items.

Named leads: Advisory roles within the steering group – influence but not legal accountability.

If your LoT is a standalone organisation

Board/steering group: Holds strategy, compliance, and finances.

Volunteers: Deliver day-to-day services, follow policies.

Named leads (chair, treasurer, safeguarding, H&S): Specific responsibilities, supported by others.
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11. Volunteer Management and Rules

Co-produce a volunteer induction (clear but friendly) - use ours as a guide

Be explicit about expectations but keep it supportive not contractual.

Provide training, recognition, and regular check-ins.

Create feedback loops so volunteers shape the project too.
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12. Bank Accounts & Finances

Use a bank account in the organisation’s name.

Always have two unrelated signatories.

Keep simple, transparent records.

Share financial updates in plain language at meetings.

13. Access, Privacy & Data

Agree who has access to what (bank, bookings, email).

Store personal data securely, following GDPR.

Change passwords when people leave.

Make sure more than one person knows where everything is kept.
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14. Backups & Succession

At least two people should have access to every key account.

Store documents in shared drives/cloud.

Keep governance documents visible to all group members.

Plan for succession: rotate roles, mentor new members, prepare simple handover notes.

15. Equality, Diversity & Inclusion

Aim for your governance group to reflect your community.

Make meetings accessible (time, location, childcare, bilingual/Welsh, digital options).

Actively invite underrepresented voices.
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16. Common Pitfalls

Relying on one or two people to do everything.

Assuming insurance is automatically covered by a host.

Not keeping finances up to date or visible.

Skipping safeguarding because “we don’t work with children.”

Letting disputes fester instead of addressing them early.

17. Working Well With Others

When you partner with other organisations or groups, it helps to have simple written documents that set out who is doing what. These don’t need to be complicated, but they do protect everyone and keep things clear.

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Memorandum of Understanding (MOU)

A light-touch agreement between two or more organisations.

Sets out the purpose of working together, roles, and expectations.

Not legally binding, but useful to show shared intent.

Use when: you’re collaborating informally (e.g. sharing space, joint events, or pilot projects).

Partnership Agreement

A more formal written agreement between organisations.

Details specific responsibilities, financial arrangements, reporting, and dispute resolution.

May be legally binding.

Use when: money, assets, or long-term commitments are involved.

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Terms of Reference (ToR)

Defines the purpose, membership, and ways of working for a group (e.g. your steering group or a joint working group with a partner).

Helps keep meetings focused and avoids confusion.

Code of Conduct

Sets out expected behaviours for individuals (e.g. volunteers, steering group members).

Helps prevent conflict, supports inclusion, and provides a framework for resolving issues.
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Key Takeaway

Good governance is not about ticking boxes. It’s about sharing power, building trust, and creating structures that reflect your community’s strengths. Start with ABCD and co-production, and your Library of Things will be built to last.

Checklist: First Steps

☐ Read through our toolkit

☐ Build a steering group with local people involved

☐ Decide whether you’re hosted or independent

☐ Agree simple terms of reference and decision-making process

☐ Set up insurance (hosted: check you’re covered / independent: choose legal form)

☐ Nominate leads for safeguarding and health & safety

☐ Open a bank account with two signatories

☐ Write down volunteer welcome rules

☐ Share access to key systems and keep backups

☐ Review progress regularly and capture lessons

☐ Do you have a MOU/PA etc in place with your partners