Trustees unlimited preboard training presentation

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  • Obviously what trustees do will vary from organisation to organisation but their responsibilities remain the same no matter what size the charity is or what it is established to deliver.How many of you are in an organisation with no paid staff – so for those that haven’t you will not only be governing but also doing or involved with everything else.Definition of governance:The process by which a governing body ensures that an organisation is effectively & properly run – Sandy AdirondakThe systems & processes concerned with ensuring the overall direction, effectiveness, supervision and accountability of an organisation – Chris Cornforth
  • Trustees will put themselves at risk of personal liability only if they…. Read from slideBreach of trust – eg exceeding the powers given in the governing document - allowing resources to be used for a purpose which falls outside the charity’s objects, taking out a loan that the charity is not in a position to pay back.May personally have to repay resources.Joint and several liability – so can be held collectively and personally liable. Those with the deepest pockets are likely to be pursued first. e.g. Wrongful trading – continuing to trade where the trustee knew or ought to have known that there was no reasonable prospect of the charity avoiding insolvency
  • Droitwich Ferret Welfare charity as a small case study – good practice in that they have recognised that they need to broaden the skills, experience and knowledge on their board & they particularly need to bring in younger peopleMention the Kings Cross Ferret -
  • Trustees unlimited preboard training presentation

    1. 1. Trustees Unlimited<br />Pre-Board Training<br />14 July 2011<br />
    2. 2. Trustees Unlimited<br />Welcome – Stephen Brooker<br />
    3. 3. Trustees Unlimited<br />Introduction to NCVO & the sector <br />Karl Wilding<br />
    4. 4. The UK Voluntary Sector: funding and resources Findings from the Civil Society Almanac 2010<br />Twitter: #almanac2010<br />Feel free to share, but please cite NCVO as the source<br />www.ncvo-vol.org.uk/almanac - comment, analysis, download<br />
    5. 5. The estimates in this slide pack refer to the voluntary sector only – based on the general charities definition<br />
    6. 6. How to grow by £10bn: donors + delivery<br />
    7. 7. Earned income<br />
    8. 8. Can we invest to generate more income?<br />Income from investments & cash in bank: <br />£3.2bn<br />Investment management costs: £459m<br />Investments: <br />£68.8bn<br />Fixed Assets: £89.9bn<br />Current Assets: £21.7bn<br />
    9. 9. Reserves<br />
    10. 10. 91,000 micro organisations<br />Income: £264m<br />Income: £26.9 billion<br />4,566 major organisations<br />75,000 small/ medium organisations<br />Income: <br />£8.4 billion<br />Income is heavily skewed to the few…<br />
    11. 11.
    12. 12. Trustees Unlimited<br />Roles and responsibilities <br />Anne Moynihan<br />
    13. 13. Role of trustees/trusteeship<br />“The board of trustees is ultimately responsible for everything a charity does. Good governance demands that trustees set clear aims and objectives, establish priorities, safeguard the charity’s assets and use them exclusively for the benefit of the charity’s beneficiaries.”<br />The Good Trustee Guide, 5th edition<br />
    14. 14. Who are (& are not) trustees?<br />The persons having the general control and management of the administration of a charity<br />Section 97 of the Charities Act 1993<br />The people ultimately responsible and accountable for a charity’s performance<br />
    15. 15. Duties & responsibilities<br />
    16. 16. Trustee duties<br /><ul><li>Duty to comply with the governing document
    17. 17. Duty of care
    18. 18. Duty to safeguard and protect the charity’s resources
    19. 19. Duty to act in the best interests of beneficiaries and </li></ul> avoid conflict of interest <br /><ul><li>Duty to act personally & collectively
    20. 20. Duty to comply with the law/s
    21. 21. Duty not to profit
    22. 22. Statutory duties and duties as a Company Director</li></li></ul><li>What do trustees do?<br />Set & maintain vision, mission & values<br />Develop strategy<br />Establish & monitor policies<br />Ensure compliance with governing document<br />Ensure accountability<br />Ensure compliance with the law<br />Maintain proper fiscal oversight<br />Maintain effective board performance<br />Promote the organisation<br />
    23. 23. What do trustees do cont’d?<br />Where staff & volunteers are employed:<br />Respect the role of staff & volunteers – sets policies to guide them & safeguard interests of charity<br />Set up employment procedures – recruitment, support, appraisal, remuneration & discipline<br />Select, support and hold chief executive to account<br />
    24. 24. Trustee personal liability<br /><ul><li>There are certain circumstances where trustees may</li></ul> be held personally liable for their actions<br /><ul><li>Protection from liability is available for trustees,</li></ul> including incorporation and trustee indemnity insurance<br /><ul><li>No protection for trustees who knowingly breach the</li></ul> duty of trust<br /><ul><li>Charity Commission position – risks should not be</li></ul> overstated<br />
    25. 25. Trustee personal liability<br /><ul><li>cause loss to the charity by acting unlawfully, imprudently or outside the terms of the charity’s governing documents</li></ul>or<br /><ul><li>in the case of unincorporated charities, commit the charity to debts which amount to more than its assets; or, in the case of charitable companies, continue to operate when they know or ought to know that they cannot avoid insolvent liquidation</li></li></ul><li>Trustee liability – protection<br /><ul><li>Good management practices
    26. 26. Clear roles and responsibilities
    27. 27. Records of decisions taken
    28. 28. Provisions in governing document
    29. 29. Trustee indemnity insurance
    30. 30. Incorporation
    31. 31. Contingency funds
    32. 32. Professional advice
    33. 33. Board development</li></li></ul><li>Charity Commission<br />“If trustees act prudently, lawfully and in accordance with their governing document, then any liabilities (debt and financial obligations) that they incur as trustees can normally be met out of the charity’s resources.”<br />The Essential Trustee, Charity Commission <br />
    34. 34. Characteristics of trusteeship<br /><ul><li>The Voluntary Principle - charity trustees are not </li></ul> normally paid for their work as a trustee<br /><ul><li>Trustees can receive out of pocket expenses
    35. 35. Trustees may be paid for services they provide to the </li></ul> charity<br /><ul><li>Time commitment varies according to the needs of the</li></ul> charity<br /><ul><li>The nature of the role can vary from charity to charity</li></li></ul><li>Why be a trustee?<br /><ul><li>Desire to become more actively involved in the</li></ul> community (22%)<br /><ul><li>The chance to do something to progress a cause (17%)
    36. 36. More meaningful way to support a charity than</li></ul> donation (17%)<br /><ul><li>The chance to develop skills (17%)</li></ul>Get on Board Campaign (Governance Hub)<br />
    37. 37. Why be a trustee?<br />“…we are the folk of a can-do/will-do spirit….working for a charity works for us – replenishes our optimism, provides us with priceless insights, energises us even whilst it tires us and binds community…”<br />Andrew Philips, OBE, 2008 <br />
    38. 38. A range of opportunities<br />Culture and Arts |Sports |Recreation |Education Research |Health|Mental Health|Crisis InterventionSocial Service|Environment |Animal Protection Economic Social and Community |Development|Housing |Employment and training |Civic and Advocacy | Law and Legal Services |Grant-making Foundation Umbrella Bodies |International |Religion |Politics Volunteerism | Philanthropic<br />
    39. 39. Finding the right fit<br /><ul><li>What are your motivations for wanting to be a trustee?
    40. 40. Are you committed to the objects of the charity?
    41. 41. On what level does the charity operate (international, national,</li></ul> local)?<br /><ul><li> What does the charity do e.g. campaigning, service delivery,</li></ul> policy, research? <br /><ul><li> What will be expected from you?
    42. 42. Is the charity financially sound?
    43. 43. What is the size of the charity and what are its potential</li></ul> liabilities? <br /><ul><li> What policies are in place to deal with risk?
    44. 44. Is the charity incorporated?
    45. 45. Who else is on the board?</li></li></ul><li>Droitwich Ferret Welfare<br />Third Sector, June 2011<br />
    46. 46. Useful resources<br />Publications:<br />The Good Trustee Guide, 5th edition, NCVO<br />Reducing the Risks of personal liability, 3rd edition, NCVO – free to download - http://www.ncvo-vol.org.uk/products-services/publications/reducing-risks<br />The Essential Trustee, Charity Commissionhttp://www.charity-commission.gov.uk/Charity_requirements_guidance/Charity_essentials/The_essential_trustee.aspx<br />Good Governance: a Code for the Voluntary & Community Sector – free to download - http://www.ncvo-vol.org.uk/codeofgovernance<br />
    47. 47. Sarah KingChief Executive, Reach Volunteering<br />
    48. 48. Trustees Unlimited<br />Tips on how to secure a role<br />Ian Joseph<br />
    49. 49. Trustees Unlimited<br />Q&A to Panel<br />Stephen Brooker – Chair<br />Karl Wilding<br />Anne Moynihan<br />Sarah King<br />Ian Joseph<br />

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