Becoming a trustee of a charity can be a good way to support a cause that is important to you, but the role comes with significant responsibilities.
A trustee has overall legal responsibility to control and administer a charity or trust, but can have a variety of titles such as governors, committee members or directors. Regardless of the title, the role of a trustee is set out in the charity or trust’s constitution and they must act collectively to govern the organisation when making decisions.
Here are some of the responsibilities and legal obligations to expect when accepting a trustee role.
Trustees must:
1. Work collectively as a board and take decisions at formal board meetings so that once a decision has been collectively made all trustees are bound to support it.
2. Operate within the rules of charity or trust, which may be a trust deed, constitution or Memorandum and Articles.
3. Adhere to the rules of law, such as the Trustees Act 2000 or the laws of the Charity Commission.
4. Not benefit financially from their position, such as make a profit or purchase trust property without the approval of the board.
5. Not receive payment for undertaking their duties unless authorised by the trust itself or laid down in its constitution.
6. Trustees have a duty to safeguard the aims of the trust and its property. They must also act impartially when making decisions.
7. Keep proper records and accounts for submission to Companies House and the Charity Commission.
8. Act unanimously in any decision they make or by a majority rule in a charity trust.
9. Seek advice before setting up a trust fund or reviewing the investments. They also have a duty to transfer trust property and income to the correct beneficiaries.
10. Produce information and documents – such as accounts – relating to their work when required by those who have the right to ensure the trust or charity is administered properly.
Most people over the age of 18 can become a trustee as long as they have not been previously disqualified as a trustee or company director, be an undischarged bankrupt or have certain unspent criminal convictions.
All of the eligible requirements to become a trustee are available from the Charity Commission. Some charities or organisations may have specific restrictions of their own.
If you have any concerns about the financial aspects of becoming a trustee, contact the Williams Denton team on Bangor 01248 670370 or Llandudno 01492 877478.