Understanding the responsibilities and liabilities of becoming a charity trustee
Trustees play a key role in ensuring that charities’ operations are always carried out as they should be as they have ultimate responsibility for the affairs of their charity.
The professional and leadership expertise they offer on a voluntary basis is also often crucial to a charity’s success.
Anyone can become a charity trustee, subject to certain limited exclusions, and it’s estimated there are around one million of them in the UK. However, it is not a role to be taken on without proper consideration, as it comes with a range of practical and legal responsibilities.
Trustees must ensure a charity is solvent, well run and delivering its charitable outcomes for the benefit of the public. They can incur personal liabilities from their role, particularly if they allow their charity to ‘mission drift,’ so that it is not being run to achieve its intended charitable purposes.
Trustees must also ensure they and their charities comply with their charities’ governing documents and their legal duties, and for anyone taking on such a role, familiarising themselves with the often-onerous obligations of the Charity Commission is advisable.
Trustees must always act in a charity’s best interests, deciding what will best enable the organisation to carry out its charitable purposes, and they must act responsibly, reasonably and honestly in managing the charity’s resources.
This is done by ensuring inappropriate risks aren’t taken with its assets or reputation, that it doesn’t overstretch itself financially and that particular care is taken when investing or borrowing. Avoiding conflicts of interest is absolutely essential!
The personal commitment required to carry out the role also needs to be considered, in terms of preparing for, attending and actively participating in trustees’ meetings, as well as fulfilling whatever other responsibilities you’re asked to take on.
Trustees are regularly asked to sit on sub-committees and it is important that they don’t consider their roles to be box-ticking exercises – hands on involvement is very much required.
Becoming a charity trustee can be an immensely rewarding experience, but there is a great deal of personal accountability that goes with it and it’s essential that anyone taking on this role does so with all of the required information and facts at hand.
Hay & Kilner offers a comprehensive training package which provides detailed guidance on charity trustees’ legal responsibilities and liabilities, as well as practical ideas and strategies to support them in their role.
Get in touch with Sarah Furness for further information.
Expert commentary & updates
The new Charity Governance Code: What trustees and charities need to know
Hay & Kilner’s Charities Team explain the new Charity Governance Code, what’s changed and how trustees should approach best practice and compliance.
New guidance on trustee payments and expenses
Sarah Furness, from our Charities Team, explains the new guidance on trustee payments and expenses, helping trustees understand eligibility, compliance and good governance.
New guidance on trustee payments and expenses
Get expert insight on the updated trustee payments and expenses guidance, how to comply with conditions for payments, and how to encourage trustees to claim reasonable expenses.
Charity trustees and delegated authority: What is it and how should it be exercised?
Hay & Kilner’s Charity Team explain what delegated authority means for trustees and how to exercise it correctly under UK charity law.
Disposing of charity land: Implications of the Charities Act 2022
Georgia Whitfield, from our Commercial Property Team, explains how the Charities Act 2022 affects selling or leasing charity land and trustee responsibilities.
Are volunteers for a charity ‘workers’ with rights?
Are charity volunteers legally classed as workers? Sarah Furness, from our Employment Law & HR team, explains employment rights and governance risks.
New guidance on when trustees should accept, refuse, or return a charitable donation
Sarah Furness, from our Charities Team, explains new UK trustee guidance on when charitable donations should be accepted, refused or returned.
For the latest insights, updates and events join our mailing list