Commission launches consultation on updated guidance for trustees

25 Nov 2014 News

The Charity Commission has today launched a consultation on updated guidance on the basics of trusteeship which clarifies that it expects trustees to comply with specified good practice unless they can justify not doing so.

The Charity Commission has today launched a consultation on updated guidance on the basics of trusteeship which clarifies that it expects trustees to comply with specified good practice unless they can justify not doing so.

Its guidance on trustee duties, ‘The essential trustee (CC3)’, has been updated to make what the Commission expects from trustees clearer.

Current guidance distinguishes between legal requirements, what trustees ‘must’ do, and minimum standards that are not legal requirements, what trustees ‘should’ do. However the regulator said some charities are not paying sufficient attention to the 'should' sections.

The draft guidance specifies that the regulator expects trustees to comply with specified good practice unless they can justify not doing so.

Jane Hobson (pictured), head of policy at the Charity Commission, said: “The changes to our ‘essential trustee’ guidance aim to make things clearer for trustees, and help them govern their charities better. It’s vital that trustees understand what we expect of them, and the revised guidance provides a clear, succinct and up to date picture.

“Trustees’ basic legal responsibilities have not changed, nor has our role as regulator. The changes around ‘must’ and ‘should’ shouldn’t affect most charity trustees, who already take their role seriously. It’s a case of trustees understanding that ‘should’ means ‘really should’ - not ‘maybe, if you feel like it’.”

If trustees do not follow the specified good practice, the Commission may ask trustees to explain and justify their decision.

It adds that if something goes wrong as a result, trustees may be in breach of their legal duties and therefore held responsible for any loss the charity incurs. This also may be treated as evidence of misconduct or mismanagement.

The Commission has said that it will still “recognise where trustees have made an honest mistake”.

Other changes that have been made in the draft guidance includes links to other guidance to avoid repetition; changes to reflect the Commission’s current position and priorities as a regulator;and the Commission highlighting what can go wrong and how to avoid it. It also emphasises that the guidance is for all charity trustees, not just trustees of registered charities.

The closing date for responses is 17 February. The Commission has said it is keen to hear views from anyone with an interest in the governance of charities, as well as from trustees and charities themselves.