Trustee roles and responsibilities
Charity trustees are the people who serve on the governing body of a charity. They may be known as trustees, directors, board members, governors or committee members. The principles and main duties are the same in all cases.
Most decisions are made collectively with importance placed on process.
Trustees have and must accept ultimate responsibility for directing the affairs of a charity, and ensuring that it is solvent, well-run, and delivering the charitable outcomes for the benefit of the public for which it has been set up.
Every charity, whether unincorporated or incorporated, has a governing document that guides the trustee board. This document aims to ensure the charity is run in compliance with relevant laws, and that trustees have a duty of prudence and a duty of care.
All charities are not uniform, and as result different types of charities have different legal expectations of their trustees. Unincorporated charities, often referred to as trusts and associations, require their trustees to closely follow the Trustees Act 2000.
Incorporated charities are most often limited by guarantee; the trustees are financially liable up to an agreed amount.
Increasingly larger charities and charities that provide services are choosing incorporated forms. The most popular of these is the company limited by guarantee (CLG). It is also possible for trustee bodies to incorporate under s50 of the Charities Act 1993.
Before you become a trustee, you should find out whether your charity is incorporated or not, as this will affect your legal position and responsibilities.
The great majority of charity trustees serve as volunteers, and receive no payment for their work.