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Charity Community

The Civil Society Covenant: are you ready to reset the relationship?

Author: Kristina Kopic, Head of Charity and Voluntary Sector, ICAEW

Published: 18 Aug 2025

The UK government launched the Civil Society Covenant on 17 July 2025, marking a significant commitment to redefine its relationship with charities and broader civil society. Find out more about the Covenant and the role of chartered accountants in resetting the relationship between government and civil society.

Purpose and scope

The Civil Society Covenant establishes a principles-based foundation for a new partnership between government and the voluntary sector. It aims to position civil society not merely as implementers of policy but as equal partners who are valued for their independence, insight and trust within communities. It applies across UK government departments, public-sector bodies and local authorities in England, and is designed to complement existing arrangements in Scotland, Wales and Northern Ireland.

Principles

The Covenant outlines four fundamental principles:

  1. Recognition and Value: government pledges to recognise and respect the independence of civil society groups, including their right to campaign and hold government to account. It commits not to penalise organisations that dissent from policy positions.
  2. Partnership and Collaboration: there is a clear emphasis on co-design and co-delivery through early, regular engagement, collaborative commissioning and a long-term funding approach. The Covenant promotes innovation, shared learning and meaningful policy input from civil society.
  3. Inclusion and Participation: the Covenant commits to involving people, including those with lived experience, in decisions that affect their lives, removing barriers to participation and promoting community-driven outcomes.
  4. Transparency and Data: the government will share information, provide feedback on policy and funding decisions, and respond to requests transparently. Likewise, civil society is expected to maintain financial clarity and accountability for public trust.

Implementation

To drive progress and provide leadership, the UK government has pledged that all departments will publicly support and work towards implementing the Covenant to strengthen their role as partners. Early actions include establishing the Joint Civil Society Covenant Council, a cross-sector body providing strategic oversight, and launching Task and Finish Groups to address policy issues, with initial focus on commissioning and local partnerships. In addition, programmes will be created to build capacity and mutual understanding, including cross-sector secondments, and an online hub will offer practical guidance and resources. Charity-sector bodies, including NCVO, ACEVO, and CFG have welcomed the Covenant as a turning point but emphasised the need for sustained action. ACEVO’s CEO Jane Ide emphasised that the launch of the Covenant must be understood as “a starting point, not the end point.”

Role of charity accountants

Accountants will play a key role in helping their charities work effectively with government by ensuring financial transparency, maintaining robust governance and producing clear, accurate reporting that builds trust and credibility. They will support strategic decision-making by providing financial insights, demonstrating impact through data, and ensuring compliance with evolving funding and commissioning requirements, to engage confidently and constructively with government partners.

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