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.

Charities are not doing enough to defend themselves over pay, conference hears

1 Jul 2015

Charities are not doing enough in response to attacks on chief executive pay, a Directory of Social Change...

VAT tribunal judgment on investment management fees worth tens of millions to the sector

30 Jun 2015

Charities should be able to reclaim VAT on investment management fees, a tribunal has ruled, in a move...

St John Ambulance records first operating surplus in seven years

30 Jun 2015

First-aid charity St John Ambulance has recorded its first operating surplus in seven years, as its income...

ASA rejects complaint against Plan UK’s ‘anti-child marriage’ TV advert

1 Jul 2015

The Advertising Standards Authority has rejected a complaint that Plan UK’s “anti-child marriage”...

Think tank Rogare calls for a fourth fundraising regulatory body to set code of practice

30 Jun 2015

Fundraising think tank Rogare has today called upon the minister for civil society to create a fourth,...

Amendments proposed to Charities Bill to make all fundraising charities with income over £1m join FRSB

30 Jun 2015

Fundraising charities with incomes over £1m would have to join the FRSB, according to amendments proposed...

Contactless donations set to soar, CAF study suggests

24 Jun 2015

There is a “massive future” for charity donations using contactless payment technology, according...

RBG Kew denies pressuring TripAdvisor into deleting hundreds of negative reviews

22 Jun 2015

Kew Gardens has denied claims that it pressured travel site TripAdvisor into deleting negative reviews...

JK Rowling charity scoops top prize at Charity Awards 2015

19 Jun 2015

A charity set up by JK Rowling ten years ago to close children’s institutions and orphanages in developing...

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 <<