The persons who have the general control and management of the administration of a charity will be its trustees.
They must:
Act collectively exercising reasonable care and skill.
Safeguard the assets of the organisation.
Act in the best interests of the organisation, avoiding personal conflicts.
Keep information at the Charity Commission up to date.
Following the very public insolvency of the charity known as Kids Company, it is clear that the courts will continue to recognise the public service that charity trustees provide, and will take a benevolent approach in circumstances where no dishonesty or wilful misconduct is alleged.
The Commission expects trustees to take their responsibilities seriously, but acknowledges that honest mistakes can happen. Public rebukes to charities or individual trustees can be issued by the Commission if it considers there has been a breach of trust or duty, or other misconduct or mismanagement. That includes maladministration that results in significant charitable resources being misused or beneficiaries being put at risk. The importance of a proper system of record keeping by both the charity and the trustees should not be underestimated to show that trustees did their best to comply with their duties, acting honestly and reasonably.
All organisations may campaign, but charities need to make sure they are not involved in party political activity. The Commission published a short guide in autumn 2022: https://www.gov.uk/guidance/political-activity-and-campaigning-by-charities
As a new charity trustee, this guide will help you in your role. It can also be used by existing trustees to refresh knowledge and skills. Published: April 2018.
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.
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.
What is the role of a board director and how should they go about fulfilling their responsibilities?
Chairs have a key role in ensuring the charity complies with the law which can feel daunting. The law is complex, wide-ranging, and changeable. Legal advice is typically expensive, may slow things down and can feel like a block to action. But a breach of the law can have serious consequences for the charity, and sometimes for the trustees personally. This briefing helps you understand the issues and find a workable approach.
Practical support on governance by NCVO.
In response to evidence suggesting an increase in concern regarding governance-related issues in the voluntary sector, the ACEVO Governance Commission set out to produce a practically-focused piece of work, focused on supporting voluntary organisations to understand and address the issues and challenges that can affect their governance. Guided by the concerns raised by respondents to the Commission’s consultation exercises, the report focuses on three main areas: appraisal and accountability; understanding roles and responsibilities; and board management. Published: 2013.
This guidance applies to the trustees of all charities in England and Wales, registered and unregistered. The Commission recommends that trustees read this guidance to understand the basics, and how it expects them to deal with conflicts of interest facing them or their charity. First published May 2014. Latest edition February 2017.
A guide to conflicts of interest policies, trustee benefits and transactions between trustees and charities from DCMS and the Charity Commission. First Published: 2008, re-published 2018.
Supporting arts and cultural institutions to become more sustainable.
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.
Official report criticizes former trustees of Kids Company. Charity Commission’s report also sets out wider lessons for the sector, especially those dealing with young people. It is expected that this report is subject to a challenge.
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