What is the relationship between the board and paid members of staff?
What are the relationships between the board and paid members of staff, and between the membership and paid members of staff?
- For charities, the Charities Act and a charity’s constitution may prevent a trustee from receiving any personal benefits. This is because of the potential for conflicts of interest.
- It is possible for a paid member of staff to also be a board member, or for a director/trustee to be paid for services rendered, but only in limited circumstances. It is likely that Charity Commission consent will be required. In those cases, a Conflicts of Interest policy may be very useful, and attention paid to ensure there is sufficient number of independent or un-conflicted directors/trustees on the board.
- If a trustee is to be paid for their professional services (e.g. accountancy) it is important that a proper tender (or, in the case of an actor on a board, audition) process is put in place to ensure fair selection and one that is in the charity’s, rather than the individual’s, best interests.
- For non-charitable not-for-profit organisations, the rules are less strict. Attention should be paid to a company’s articles of association and for Community Interest Companies, the CIC Regulations. In any case, potential or actual conflicts of interest should always be properly declared and managed.
