As a trustee of a charity, it is essential that you run your charity in a way that complies with your charity’s governing document and the law, which includes ensuring that all the activities undertaken by the charity further its aims or purposes (known as ‘objects’).
Summarised below are ten useful tips to assist you in understanding your duties and responsibilities as a charity trustee:
- Read the charity’s governing document – this will help you understand what your charity is set up to achieve, who the beneficiaries of the charity are and what powers your charity has to carry out its purposes;
- Make sure you understand how the charity must be managed – including how trustees are appointed, how many trustees there should be, how often trustees must meet and how many trustees are required for valid decision making;
- Decisions must be made in the best interests of the charity, and you must:
- act within your powers
- act honestly and only in your charity’s interests
- be informed, taking appropriate advice as needed
- take account of all relevant factors
- manage conflicts of interest
- Document your decision making – decisions should be documented in minutes in order to show that you have acted properly, gathered relevant information, and set out the reasons why you have reached your decision;
- Use your skills and experience – you can help inform other trustees with decision-making by utilising your relevant skills and experience;
- Professional advice – it is important that you seek appropriate professional advice when needed to help trustees reach a decision. For example, you may need to seek valuation advice, financial or legal support in order to assist the charity in a particular decision;
- Make sure that the charity’s money is only spent on furthering the charity’s objects and in accordance with any rules and powers on spending money contained in the charity’s governing document, policies and procedures;
- Know your charity’s financial position – set a budget and follow it, understand how your charity is funded, ensure that your charity has a reserves policy and make sure the charity keeps accurate financial records;
- Understand your annual filing requirements and what must be reported to the Charity Commission;
- Make sure you know what to do if something goes wrong and if the problem has caused or could cause significant harm or loss to your charity, its reputation or the people it helps.
Our specialist charities team has significant experience in advising regional, national and international charities on a range of issues from governance, incorporation and mergers to funding, commercial contracts and regulatory advice.
Our charities team is ranked in Tier 3 (South West) for Legal 500 and Laurie Trounce has received an individual ranking as a national expert in Charity Law by Chambers and Partners alongside Olivia Miller as a recommended lawyer.
Should you need further guidance and advice on this, please get in touch with our charities team by phone 0345 450 5558 or by email enquiries@stephens-scown.co.uk.