Charities play an important role in the UK by providing invaluable support to communities, advancing causes and driving positive change where businesses and governments can’t or won’t.
But running a charity is not without its challenges, and those who oversee these organisations – trustees – play a crucial role in ensuring the charity’s success and legal compliance. Understanding these roles and responsibilities of trustees is vital for any charity, whether new or established, so let’s take a look at them.
Who are trustees?
Trustees are individuals responsible for the overall management and administration of a charity. Their ultimate responsibility is making sure the charity is doing what it was set up to do. They may be known by other titles, such as:
- directors
- board members
- governors
- committee members.
What are a trustee’s main duties?
Trustees have a range of important responsibilities. They’re all important to ensure the charity is run well, objectively and transparently.
- Ensuring the charity is carrying out its purposes for the public benefit: Trustees must ensure the charity is carrying out the purposes for which it was set up. This involves reviewing the charity’s government document and creating plans that align with it. Decisions that trustees make should be informed by evidence and seek to achieve the charity’s short- and long-term goals.
- Complying with the charity’s UK charity law: Trustees have to make sure the charity is complying with UK charity law and laws of other relevant jurisdictions. This involves researching legal requirements and listening to advice to steer the organisation in the correct direction. Trustees should also make sure the charity’s details on the register are up-to-date and the correct financial information is sent to the Charity Commission in its annual return.
- Acting in the charity’s best interests: Trustees must act professionally to properly represent their charity. They should avoid putting themselves into a position where their duty to the charity conflicts with their personal interests or loyalty to another organisation. They should also avoid any benefit from the charity unless it is properly authorised.
- Managing the charity’s resources responsibly: Trustees must make sure the charity’s assets are only used to support its purposes as directed by the governing document. They should only commit the assets the charity can afford to, take care when investing or borrowing and ensure all financial safeguards are followed to protect against theft and fraud.
- Acting with reasonable care and skill: Trustees should use reasonable care and skill while taking appropriate advice when necessary. They should be active in the charity by, for example, preparing for, attending and participating in all trustees’ meetings.
- Ensuring your charity is accountable: Transparency is a critical part of running a charity so that the trustees can demonstrate they’re complying with the law. But transparency is also important so that trustees remain accountable to outside stakeholders, especially when there are staff or volunteers inside the charity.
What can trustees do to ensure they fulfil their role?
To be successful as a trustee, it’s crucial to take proactive steps towards good governance and compliance. You can begin by familiarising yourself with the Charity Commission’s guidance and regularly attending trustee training or workshops to stay up to date on legal and regulatory changes. Use what you learn to ensure your charity has clear policies in place for key areas such as safeguarding, financial management and risk assessment.
Effective communication is also key to being a good trustee. Make sure to schedule regular meetings with your fellow trustees, charity staff and volunteers to maintain transparency and accountability. Don’t hesitate to ask difficult questions or seek independent advice when necessary, particularly on financial or legal matters.
Lastly, work as a cohesive team. Each trustee will bring unique skills to the table, so use everyone’s strengths to help the charity thrive. By being diligent and thoughtful, trustees can steer their charity towards success and long-term sustainability.
Talk to us at P B Syddall & Co. about your charity and wider UK charity law.