Essential Duties and Responsibilities of Charity Trustees

Essential Duties and Responsibilities of Charity Trustees

Becoming a Trustee of a charity in England and Wales is a rewarding role but comes with legal responsibilities that all Trustees should be aware of (whether you call yourself a Trustee, Committee Member, or something else - you are legally a Trustee).

1. Ensure You are fulfilling your Charity’s purpose

    • Always act in the charity’s best interest.
    • You should regularly review the governing document to make sure that your activities align with the charitable objectives.
    • Ensure funds and resources are being stewarded wisely to further the charity’s aims with regular management information.
    • Regularly review the charity’s activities and strategies to ensure they remain aligned with its mission – it's quite easy to get sidetracked, especially if the charity has been established for a long time.

    2. Comply with the Law

    • Ensure you follow your charity’s governing document and legal obligations. This is part of reviewing the governing document regularly.
    • Ensure compliance with the Charities Act 2011 and other relevant legislation.
    • Ensure proper and timely reporting to the Charity Commission (CC).
    • Keep up to date with charity law and regulatory requirements such as GDPR and employment laws that may affect your charity.

    3. Act with Care and Diligence

    • Make informed decisions based on evidence, advice and careful consideration of risks.
    • Be proactive in identifying, managing and reviewing risks to the charity, including financial, operational, and reputational risks.
    • Ensure the charity’s assets are safeguarded, including finances, property, and intellectual property, and that they are used appropriately.
    • Promote accountability and transparency throughout the charity, ensuring the charity’s stakeholders and beneficiaries can trust its operations.

    4. Manage Charity Finances Responsibly

    • Ensure financial records are accurate, complete and regularly kept up to date.
    • Approve budgets and regularly monitor spending.
      Understand the finances - not just leaving it to the Treasurer/accountant. The finances are the equal responsibility of ALL trustees. If you’re not sure, ask someone to explain to you so that you have an understanding.
      Establish robust financial controls to prevent fraud and misuse of funds, including clear policies on expenses and other spending.
      Have an understanding of Charity reporting: what type of accounts do you need to prepare, and do you need an Independent Examination, or an audit. And when do they need to be filed and with who.
    • Understand and comply with tax obligations, Gift Aid regulations, and VAT considerations where applicable.
    • Periodically have a review of your charity’s income sources for VAT to ensure that you don’t need to be registering for VAT – just because you’re a charity doesn’t mean that all your income is not subject to VAT. It’s a highly complex area, and we recommend a review at least every 5 years.

    5. Work as a Team

    • Collaborate with fellow Trustees, staff and volunteers to support strong governance and effective decision making.
    • Avoid conflicts of interest and declare any when necessary – this should be a standing item on the agenda for all Trustee meetings.
    • Foster an inclusive and respectful working environment where diverse perspectives are valued and encouraged.
    • Participate actively in Trustee meetings, ensuring collective decision-making that considers all relevant factors.

    6. Ensure Compliance with Fundraising and Safeguarding Rules

    • Follow fundraising regulations and ethical standards.
    • Protect beneficiaries, staff, and volunteers by implementing and reviewing safeguarding policies regularly.
    • Ensure appropriate safeguarding training is in place for your charity and report any safeguarding concerns promptly.
    • Maintain clear policies on donor stewardship and ethical fundraising, ensuring public trust in the charity.

    Useful Links for Trustees:

    Staying informed and proactive as a Trustee will help you fulfil your role effectively and support your charity’s success. If you’re not sure, there is always someone to ask – start with your Accountant 😊.

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