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.

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Charity assets: Wedgwood case is just the tip of the iceberg
Blogs

Charity assets: Wedgwood case is just the tip of the iceberg

Finance | David Davison | 1 Feb 2012

Charities could be responsible for 'orphan' pensions liabilities, born from unconnected organisations. David Davidson offers his advice to prevent an outcome as seen in the Wedgwood case.

Nigel Kershaw, chief executive of Big Issue Invest
News

Trustees 'must deploy day-job skills' in board roles 3

Governance | Vibeka Mair | 6 Jan 2012

Nigel Kershaw, chief executive of Big Issue Invest, says too often charity trustees who are enormously skilled in their day jobs lose this edge in board meetings, as they define business as one thing, and charity and philanthropy as another.

Charity Commission is examining practice of charities letting empty shops for donations
News

Charity Commission is examining practice of charities letting empty shops for donations

Finance | Vibeka Mair | 12 Dec 2011

The Charity Commission is examining over 700 cases where shop owners may be reducing their business rates liabilities by paying charities to sign tenancies for empty shops.

Shout about your impact
Expert advice

Shout about your impact

Finance | Suzi Leather | 1 Oct 2011

Clearly explaining your charity's impact needs to be central to trustee reporting, urges Dame Suzi Leather.

Socrates Socratous, director of SOC VAT consultants
News

Charities' income would drop as result of paying trustees 1

Finance | Niki May Young | 26 Sep 2011

Charities would suffer from lower incomes if trustees were to be paid, warns VAT specialist Socrates Socratous, commenting on Lord Hodgson's claim last week that payment of trustees was inevitable.

OSCR investigation leads to conviction of trustee for embezzlement
News

OSCR investigation leads to conviction of trustee for embezzlement

Governance | Vibeka Mair | 12 Sep 2011

A woman, who was the sole trustee of a public hall in Scotland, has been found guilty of embezzling £800 in charitable funds, after a  three-year inquiry by the Office of the Scottish Regulator into the Scalloway Public Hall Trust uncovered the fraud.

Charity Commission Liverpool office
News

Charity Commission responds to public benefit reporting research

Finance | 4 Jul 2011

The Charity Commission has outlined its initial analysis of the Sheffield Hallam University research into public benefit reporting


Charity boards should communicate redundancies to staff, says NPC report
News

Charity boards should communicate redundancies to staff, says NPC report 3

Governance | Vibeka Mair | 29 Jun 2011

Trustees should take responsibility for difficult announcements at charities such as redundancies, according to a new report from New Philanthropy Capital.

Dame Suzi Leather
News

Commission updates model documents to give trustees more control 1

Finance | Tania Mason | 13 Jun 2011

The Charity Commission has revised its model charity trust deed, constitution and articles of association to give trustees more flexibility over decisions relating to financial benefits for themselves and others connected to them.

Alzheimer’s charity spent nothing on charitable activities, finds Commission report
News

Alzheimer’s charity spent nothing on charitable activities, finds Commission report 3

Governance | Niki May Young | 6 Apr 2011

Alzheimer’s UK Research Eduation and Care Ltd “had become nothing more than a fundraising vehicle”, the Charity Commission stated in its report into the governance and use of funds at the five-year-old charity.

Care charity loaned over £173,000 to staff member to buy house
News

Care charity loaned over £173,000 to staff member to buy house

Governance | Niki May Young | 4 Apr 2011

The Charity Commission has concluded its report into Broad View Care Ltd after its second statutory investigation which revealed the charity had loaned over £173,000 to its director of nursing to buy a house.

John Low, chief executive, Charities Aid Foundation
Blogs

FDs...Get on the trustee train!

Finance | John Low | 1 Apr 2011

John Low urges FDs to become trustees, and reap the benefits.

Andrew Hind
News

Andrew Hind's opening plenary address to Trustee Exchange 2011

Governance | Andrew Hind | 30 Mar 2011

Andrew Hind offers a personal recollection of lessons learned on governance from various trustee and executive positions.

Ian Oakley-Smith
Analysis

Managing in a downturn: four polls in

Finance | Ian Oakley-Smith | 10 Feb 2011

Finance directors are well placed to help trustees ensure their charity emerges stronger from the recession, says Ian Oakley-Smith.

Paying trustees
News

Commission approvals of trustee payments rise this year 4

Governance | Tania Mason | 24 Nov 2010

The Charity Commission has already granted more requests from charities to pay their trustees in the first seven months of this financial year, as it did in either of the last two entire years.

Hind denounces sector's 'survival of the fittest' mindset
News

Hind denounces sector's 'survival of the fittest' mindset 2

Governance | Tania Mason | 27 Oct 2010

Charities must resist the urge to compete – for funds, donors and contracts – and focus instead on how they can share information and help each other out, former Charity Commission chief Andrew Hind said last night.

Model code of conduct for charity trustees
Terms of reference

Model code of conduct for charity trustees

Governance | 16 Sep 2010

Trustees perform a vital role in a charity, holding a great deal of responsibility. This model code of conduct, prepared by Charity Trustee Networks, will ensure both the charity and the trustee are aware of the trustee responsibilies.

Inflation risk for trustees
Blogs

Inflation risk for trustees

Finance | 27 Aug 2010

Trustees are responsible for protecting charity assets from inflation, argues Georgina Hand.

Reporting serious incidents
Analysis

Reporting serious incidents

Finance | Don Bawtree | 26 Aug 2010

The revised Charity Commission guidance for serious incident reporting still needs work, says Don Bawtree.

At risk of stress
Analysis

At risk of stress

Finance | 26 Aug 2010

Ensuring your risk assessment includes a review of workplace issues should be high on this year’s agenda, says Anne Hudson.

Court to hear plea against pension scheme deficit payment
News

Court to hear plea against pension scheme deficit payment

Governance | Tania Mason | 17 Mar 2010

A court case scheduled for tomorrow will be asked to consider whether a charity's pension scheme liability is more important than the charity’s responsibilities to its beneficiaries, and ultimately its survival.

Charities, pension schemes and the judgement of Solomon
Blogs

Charities, pension schemes and the judgement of Solomon 1

Governance | David Davison | 11 Mar 2010

I read with some dismay the story of the 72-year-old charity volunteer facing ruin as a result of being pursued for nearly £20,000 by the trustee of the pension scheme he was associated with as chairman of a branch of the charity.

Civil society leaders are sending out mixed messages
Blogs

Civil society leaders are sending out mixed messages 2

Finance | Daniel Phelan | 28 Jan 2010

Civil society leaders have started the new decade and the run-up to a general election by sending out mixed messages to our political masters.

Appeal to Tribunal succeeds
Legal

Appeal to Tribunal succeeds

The charity tribunal has quashed a Charity Commission order for the first time, reports Jonathan Burchfield.

The big asks - how to survive an economic downturn
Help to review
In-depth

Help to review

Finance | Gareth Jones | 29 May 2009

Gareth Jones examines the role of investment advisers for charities The Trustee Act 2000 holds that before exercising any power of investment, trustees must obtain and consider proper advice, unless the size of investment funds are so small that it would not be cost-effective to do so. It was the introduction of this provision coupled with the loss of funds by many charities in the bear market of 2003 which have led to the rise of the dedicated investment adviser, bridging the gap between the charity and the fund management community and offering an objective eye. While once this profession was mostly limited to advice on handling pension funds, now the role can encompass every element of the creation and implementation of a successful investment strategy.

Regulator resists 'group accounting' pressure from Audit Commission
News

Regulator resists 'group accounting' pressure from Audit Commission

Finance | Tania Mason | 29 May 2009

The Charity Commission is resisting pressure from public sector auditors to consolidate charities' accounts into the group accounts of public bodies, where the public bodies are the corporate trustee of a charity or appoint its trustees.

Labour agrees to look at independent examination of v
News

Labour agrees to look at independent examination of v

Finance | Vibeka Mair | 14 Oct 2008

The Cabinet Office will consider a call for a "rigorous independent assessment of v's effectiveness".

Keeping the faith
In-depth

Keeping the faith

Finance | Shivaji Shiva | 26 Sep 2008

Shivaji Shiva looks at governance issues in faith organisations. The first case to be heard by the Charity Tribunal was initiated earlier this year by a former trustee of Sivayogam, a Hindu charity that runs temples in Tooting and Wembley.

Commission aims to help charities back on track
News

Commission aims to help charities back on track

Finance | 26 Sep 2008

The Charity Commission has identified poor basic accounting and reporting practices as a problem common to a number of the charities it dealt with in the year.

Displaying 1 to 30 (of 44) | next | last » 12