Meet their legal duties to safeguard the organisation’s assets.
Administer the organisation’s finances and assets in a way that identifies and manages risk.
Ensure the quality of financial reporting, by keeping adequate accounting records and preparing timely and relevant financial information.
Most arts and museum boards oversee and scrutinise the financial management of their organisations rather than being directly involved in the financial management. It is a board’s obligation to ensure that financial affairs are managed effectively and to receive the right information to be able to have assurance that this is being done.
Although boards may delegate financial duties to management and committees, they cannot delegate their ultimate responsibility for the finances of the organisation. All board members should be aware that there is no such thing as a stupid question. If financial information is presented in a way that they do not understand they should ask for it to be simplified.
Boards should take extra care in relation to the newer technologies including mobile payment systems and cryptoassets.
The role of the board in finance is summarised in the Charity Commission publication: Internal financial controls for charities.
Another good resource is a government report: 15 questions trustees should ask.
A report from the Charities Aid Foundation and ICAEW, published in early 2022. This shares the challenges and opportunities facing trustees in the year ahead. The report discusses the six key areas they identify: financial resilience, collaboration, diversity, support and training, digital and climate change.
The best strategy to avoiding problems is being aware of how things could go wrong, taking steps to avoid issues and knowing what steps you would take if something did happen. Awareness and prevention are better than a cure. The AoC provides some useful resources for charity boards you can use.
The Charity Commission requires charities to report serious incidents. This guidance helps charity trustees identify serious incidents. It also explains how to report them and what to report.
Following the publication of the Report on Corporate Culture and the Role of Boards by the Financial Reporting Council (FRC), the City Values Forum and Tomorrow’s Company have published a guide entitled Governing Culture: Risk and Opportunity? – a guide to board leadership in purpose, values and culture. Published: September 2016.
A Charity Commission publication setting out all you need to know formally about being a trustee. First published: March 2012, latest updates: May 2018.
Nick Mott, Head of Policy Development and Review at the Charity Commission, highlights the key points of the Essential Trustee guidance. Published: August 2016.
Find out what being a charity trustee involves, if you can claim expenses and where to get help and advice. First published: May 2013, latest updates: May 2018.
An update from the Charities' Commission on tax and trading.
This briefing looks at the Chair’s role in helping the board to navigate risk. Charities face a multitude of risks, that could derail you from achieving your charity’s aims. The challenge for Chairs is to ensure that your board understands and successfully navigates risks and seizes opportunities, without getting bogged down in details or being excessively cautious. This briefing explores how as Chair, you can help your board take a strategic approach.
In today’s dynamic and fast-moving workplace, the board plays an important role in risk management and establishing an effective risk culture. Published: August 2015.
Resources for tackling charity fraud.
Links to the UK Government's 2018 study into fraud in charities. Published: April 2018.
This guidance is written for trustees of charities of all sizes and types, whether they are companies, trusts or associations to help them develop a reserve policy. Published: January 2016.
How to manage your charity’s financial activity and use internal financial controls to reduce the risk of loss. Published: July 2012.
This handbook aims to help treasurers feel confident in their role. Published: November 2017.
The last couple of years have been extremely challenging for the charity sector with the COVID-19 pandemic. The sector has shown incredible resilience, but there are now more uncertainties ahead with the cost of living crisis and the war in Ukraine.
The Charity Commission has issued practical 5-minute guides on the following subjects: delivering purpose, managing finances, conflicts of interest, making decisions, reporting information, safeguarding people, political campaigning.
HMRC issues newsletters to update charitable organisations on relevant tax developments. The sign-up for future newsletters is here
HMRC issues newsletters to update charitable organisations on relevant tax developments: the first one sets out summaries for charities considering converting structures and the Gift Aid scheme.
We use Cookies to ensure that we give you the best experience on our website. If you click continue, we will assume you are happy with this. Alternatively, you can reject the use of Cookies on this site. Read more about Cookies in our Privacy Policy.