Duties of a Trustee
Chris Smail - Langer & Co
ChrisSmail@langer.co.uk
0161 491 3788
www.langer.co.uk
17/02/2011
Why am I here?
Member
Trustee
Acountant
Why are you here?
?
Why are we here?
Lots of Guidance already available
Charity Commission
NCVO
SCC/Trusteenet
Who is a Trustee?
17/02/2011
Who is a Trustee?
Charity trustees are the people who form the
governing body of a charity. They may be
known as trustees, directors, board members,
governors or committee members.
Trustees are responsible for controlling the
management and administration of a charity.
Duties of a Trustee?
Duties of a Trustee?
Act in the best interests of the Charity
Duties of a Trustee – CC3a
Ensuring compliance
Duty of prudence
Duty of care
Ensuring compliance
Charity Law
Objects of Charity
Other Legislation
Integrity
Charity Law
Charity law, and the requirements of
the Charity Commission as regulator;
in particular you must ensure that the
charity prepares reports on its work,
and submits Annual Returns and
accounts as required by law. See also
CC10 – Hallmarks – (Later)
Objects
The requirements or rules, and the
charitable purpose and objects, set out
in the charity's own governing
document. All trustees should have a
copy of this document, and be
familiar with it.
Other Legislation
The requirements of other legislation
and other regulators (if any) which
govern the activities of the charity;
these will vary according to the type
of work the charity carries out, and
whether it employs staff or
volunteers.
Integrity
The requirement for trustees to act with
integrity, and avoid any personal conflicts of
interest or misuse of charity funds or assets.
Integrity
You should check the charity's governing
document for provisions relating to conflicts
of interest and you can find more information
on the Ch Com website guidance on conflicts
of interest and in CC11 Trustee expenses and
payments
Duties of a Trustee – Prudence
Solvent
Wise use of funds
No undue Risk
Cautious investment and borrowing
Duty of Prudence - Solvent
Ensure that the charity is and will remain
solvent; this means that you need to keep
yourself informed of the charity's activities
and financial position.
Duty of Prudence – Use of Funds
Use charitable funds and assets wisely, and
only to further the purposes and interests of
the charity.
Duty of Prudence - Risk
Avoid undertaking activities that might place
the charity's property, funds, assets or
reputation at undue risk.
Duty of Prudence - Caution
Take special care when investing the funds of
the charity, or borrowing funds for the charity
to use.
Duty of Care
Reasonable Skill & Care
Professional Advice
Reasonable Skill & Care
Exercise reasonable care and skill as trustees,
using personal knowledge and experience to
ensure that the charity is well-run and
efficient (CC8 Financial Controls)
Keep informed of activities and finances
Keep minutes of meetings and ensure actions
completed (CC48)
Professional Advice
Consider getting external professional advice
on all matters where there may be material
risk to the charity, or where the trustees may
be in breach of their duties.
CC33 - Acquiring Land
18. We strongly recommend that trustees
proposing to buy land, whether for
investment purposes or for use by the charity,
obtain a report from a qualified surveyor who
is acting solely for the trustees.
CC28 disposing of charity land
D1 If you are carrying out one of these types
of disposals you must: obtain and consider a
written report from a qualified surveyor;
advertise the disposal following advice from
your surveyor; and decide you are satisfied
that the proposed terms are the best that can
reasonably be obtained in the circumstances
of the disposal.
Duties of a Trustee
CC10 Hallmarks of an
effective Charity
1: Clear about its purposes and direction
2: A strong board
3: Fit for purpose
4: Learning and improving
5: Financially sound and prudent
6: Accountable and transparent
Hallmark 1: Clear about its
purposes and direction
An effective charity is clear about its
purposes, mission and values and uses them
to direct all aspects of its work.
Hallmark 2: A strong board
An effective charity is run by a clearly
identifiable board or trustee body that has the
right balance of skills and experience, acts in
the best interests of the charity and its
beneficiaries, understands its responsibilities
and has systems in place to exercise them
properly.
Hallmark 3: Fit for purpose
The structure, policies and procedures of an
effective charity enable it to achieve its
purposes and mission and deliver its services
efficiently.
Hallmark 4: Learning and
improving
An effective charity is always seeking to
improve its performance and efficiency, and
to learn new and better ways of delivering its
purposes. A charity's assessment of its
performance, and of the impact and outcomes
of its work, will feed into its planning
processes and will influence its future
direction.
Hallmark 5: Financially sound
and prudent
An effective charity has the financial and
other resources needed to deliver its purposes
and mission, and controls and uses them so as
to achieve its potential.
Hallmark 6: Accountable and
transparent
An effective charity is accountable to the
public and others with an interest in the
charity in a way that is transparent and
understandable.
Disclaimer
This presentation is made available on the
basis that no liability is accepted for any
errors of fact or opinion they may contain.
Professional advice should be obtained
before applying the information in any
particular circumstances.
17/02/2011
Duties of a Trustee
Chris Smail - Langer & Co
ChrisSmail@langer.co.uk
0161 491 3788
www.langer.co.uk
17/02/2011