You’ve just been invited to be a Trustee of a charity as you have the skills that are needed to be added to the Board. You have accepted the invitation – you support the charity and believe in what they are trying to achieve and want to play your part in its future development. But do you know what it means to be a Trustee?
I have taken on the role of Trustee in a number of charities over the years – but I have seen firsthand that too often the appointment is made with no explanation given as to what was expected. It has happened to me too. Sometimes, it seems as though the existing Trustees don’t fully know, and some of them have been on the Board for a long time. That’s why I seek to ensure that, in the charity I work for now, copies of Charity Commission publications like ‘The Essential Trustee’ and the new Good Governance Guide are passed on to potential Trustees.
As a Trustee, you are responsible for the governance of the organisation. You should ensure that you know what is expected of you. Do you have a job description for your position – both covering the general expectations of all Trustees and those specific to the role you will fulfil on the Board?
You need to ensure that you know your Governing Document. What are your objects and activities – and are they appropriate and do they cover what the organisation does? Can you see how you provide public benefit? Do you know how Trustees are supposed to be appointed – and are appointments valid under those procedures? Do you trade – and does your Governing Document allow you to? You need to know those things because, as a Trustee, you are now responsible for the way the charity runs – and for ensuring that it keeps within its Governing Document.
As a Trustee, you have a potential personal liability if the charity is not running within what its Governing Document – and also the law demands. Trustees must act prudently, lawfully and in accordance with the Governing Document – and if not, all Trustees are liable for the consequences.
In acting prudently, don’t spend more than the assets you have in your hands. Don’t commit to expenditure if you don’t know where the money is coming from. Don’t forget, if the charity is incorporated, any contracts it enters will be in the name of the charity, but if unincorporated, any contracts will be in the name of the Trustees.
In acting lawfully, Trustees must consider charity law, company law (if a charitable company), employment law, discrimination law and any other relevant laws. Find a way of ensuring that you are made aware of any changes that come into force to ensure you keep up to date.
These are some of the basics in relation to being a Trustee. In future blogs, we will look at areas like the 6 principles in the Good Governance Guide, Codes of Conduct, Declarations of Interest, internal controls and checks, delegations, the role of the Board v the role of staff, Nolan Principles.
There is a lot to think about – but there is something very fulfilling in taking on the role of a Trustee. We do it for an organisation that we believe in – and see a lot of good being done to help others.
If you would like to talk about any issues raised – or arrange some training for your Trustees relating to their duties and responsibilities – please get in touch.
(This material is taken from a presentation given by Giselle Davies, partner of Geldards Solicitors at a recent seminar on Charity Governance and Risk)