Top Five Tips for Charity Trustees
Date: 05/09/2024 | Corporate, Regulatory Law
Our previous article talked about how to set up a charity in Scotland, and appointing trustees to run the charity. But what does being a charity trustee really involve? Being a charity trustee is incredibly rewarding, but it comes with important responsibilities. Here are our top five tips for anyone considering being a charity trustee.
Tip 1: Understand what the charity does
You should always research the charity before you apply to become a trustee, or before accepting a position on the board. That way you can decide if the charity aligns with your values, and if you think you would be a good fit as a trustee. All Scottish charities have defined charitable purposes. As a trustee, you will be responsible for ensuring that the charity’s activities are carried out in furtherance of those specific purposes. Find out as much as you can about what the charity does. There is a huge benefit in speaking to other trustees, attending events, and visiting locations where the charity operates to see what it actually does to help people. All of this will inform your decision as to whether or not to become a trustee.
Tip 2: Understand your role and duties
Charity trustees are the people who manage and have overall control of the charity. They are responsible for the charity’s governance and strategy, and for making sure that the charity is run effectively and according to its charitable purposes. This means you might need to make difficult decisions.
The duties of a charity trustee are set out in Scottish Charity Law. These duties apply to all Scottish charities, regardless of the size and legal form. You should familiarise yourself with these duties early in your trusteeship. For example, some of the trustee duties are:
- Updating the charity’s details on the Scottish Charity Register;
- Reporting certain financial information and events to OSCR;
- Dealing with financial records;
- Fundraising; and
- Providing information to the public.
You might have specific skills and expertise to bring to the board. For example, were you appointed because of your HR skills, or marketing background? If that’s the case, then you need to consider how your specific expertise can best be used to benefit the charity.
It’s also likely that your skills as a trustee will develop and evolve during your time as a trustee – that’s one of the benefits of being a charity trustee.
A trustee may also have additional duties and responsibilities depending on the legal structure of the charity. For example, if the charity is set up as a company limited by guarantee, the trustees will generally be appointed as directors of that company and will have responsibilities under Company Law.
Tip 3: Don’t be afraid to speak up
Trustees are hired for their expertise and guidance and must act responsibly and with due skill and care, putting the charity first. This means that sometimes you might disagree with your fellow board members or even have a concern about a decision that has been made or a process that has been put in place.
Be prepared at board meetings so that you understand why certain decisions have been made and can articulate why you think there might be an issue. It can be daunting to speak up in trustee meetings, but if you feel it’s important enough to raise, you should find a way to communicate why you think there’s a problem. After all, your primary duty is to act in the best interests of the charity. Depending on how the charity is set up, trustees can sometimes be held personally liable for financial loss suffered by the charity, so it is important that trustees act in accordance with their duties and always understand what is being asked of them.
Tip 4: Know that you can ask for help
As a trustee, you have important duties and responsibilities towards your charity, and you are expected to act with skill, care and diligence in exercising those duties. However, remember you’re not expected to know everything, and you’re not meant to act alone. You are part of a team of trustees, and you may also have staff and volunteers running operations. Try to surround yourself with a strong team and ensure that there are processes in place to consider and mitigate the risks faced by the charity.
OSCR has a wealth of information for trustees on its website, as does the Scottish Council for Voluntary Organisations.
Your professional advisors (lawyers, accountants, tax advisors) will also be able to guide you in relation to the regulatory landscape within which the charity operates.
Tip 5: Enjoy making a difference
Charity trustees are amazing. You’re doing this because you want to help, and you are aligned with the values and charitable purposes of the charity. Most charity trustees are unpaid and giving up their evenings and weekends to volunteer. You will most likely meet other people who can inspire you, and charity trustees often say they get so much more out of the experience than they give. If you’re thinking of becoming a trustee, do your research and then reach out – most charities will be glad to hear from you.
Where can I get help?
At Davidson Chalmers Stewart we are adept in advising charities on all of these issues. For more advice, please contact Lisa Kitson at lisa.kitson@dcslegal.com (0131 290 2812).
Disclaimer
The matter in this publication is based on our current understanding of the law. The information provides only an overview of the law in force at the date hereof and has been produced for general information purposes only. Professional advice should always be sought before taking any action in reliance of the information. Accordingly, Davidson Chalmers Stewart LLP does not take any responsibility for losses incurred by any person through acting or failing to act on the basis of anything contained in this publication.
