Share

Research is needed to assess effectiveness of paying trustees, says law group

Research is needed to assess effectiveness of paying trustees, says law group
News

Research is needed to assess effectiveness of paying trustees, says law group

Governance | Tania Mason | 18 May 2012

Funders with an interest in governance should pay for research to establish whether paying trustees does help to improve charity governance, an influential group of charity law experts have recommended.

The recommendation is contained in the NCVO charity law advisory group’s submission to Lord Hodgson’s Charities Act review.

The group considered whether the statutory power for charities to pay their trustees should be changed or extended in some way. It outlined the arguments for and against paying trustees and cited some research on US charities and UK housing associations, which was, on balance, inconclusive.  

The group concluded that no amendment to the law is required, but added: “The issue of what benefits paying trustees can bring is an area ripe for further research and it is therefore recommended that future research is undertaken in order to shed more light on whether payment helps with recruitment, diversity and improved governance.

“Funders with an interest in governance are strongly encouraged to fund further research into whether payment of trustees has an impact on the delivery of effective governance.”

The Group also recommended that the Charity Commission should publish annual statistics about the numbers of individual trustees who have been required to make payments to their charities as a result of breaches of trustee duties. This should help to reassure prospective trustees about the reality of the financial risks they face.

Elsewhere, Stephen Lloyd, a senior partner at Bates Wells and Braithwaite who is advising Lord Hodgson during the Charities Act review, has said payment of trustees will not be "a major issue again".

Speaking yesterday at the Charity Law Conference on the Charities Act review, Lloyd said:

"I will be very surprised if payment of trustees is a major issue again - rest assured on that one."

Debra Allcock Tyler, chief executive of the Directory of Social Change, who also spoke at the conference, said she had spoken to Lord Hodgson this week at Civil Society Question Time and he had been very clear that "the voluntary nature of the charity endeavour was critical".

This suggests a u-turn in Lord Hodgson's views on the payment of trustees. Last year, at the annual Charity Commission board meeting, he said that "payment of trustees is coming whether we like it or not."

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

DFID announces UK's first development impact bond

17 Apr 2014

The UK is to launch the first development impact bond - an international version of the social impact...

Sector 'extraordinarily disconnected' from public, CFG chair says

15 Apr 2014

Charities are becoming “extraordinarily disconnected” from donors and supporters who do not understand...

Stephen Frost announced as Charity Awards host

15 Apr 2014

Civil Society Media is delighted to announce that this year's Charity Awards will be presented by actor...

2014 London Marathon on track to beat the £53m raised last year

18 Apr 2014

The 2014 London Marathon is on track to raise more than £53m for good causes and break the Guinness World...

No evidence of criminality at Tower Hamlets, say police

17 Apr 2014

The Metropolitan Police has said that there is “no credible evidence of criminality” following an...

Donations double in one day following Marathon runner’s death

16 Apr 2014

The amount donated to the National Osteoporosis Society, the charity 42-year-old Robert Berry was running...

'Technology can offer charities more than just online donations'

10 Apr 2014

Charities are focusing too much on using digital tools for fundraising instead of how technology can be...

Amnesty calls for 'full and frank disclosure' on alleged US surveillance

9 Apr 2014

Amnesty International has warned that alleged mass surveillance by the American intelligence agency NSA...

Virgin Money Giving launches app following year of growth

1 Apr 2014

Virgin Money Giving has launched an app for users after reporting that 30 per cent of traffic to its platform...

Join the discussion

Twitter
 
Training

Attending our one day courses is a highly effective way of ensuring new and existing trustees fully understand their role, responsibilities and liabilities.

>> Find out more <<