2. • Context of trusteeship and sector
• Role of a trustee
• Legal duties
• Liability and legal forms
• Good Governance
• Opportunity for any questions
WHAT WE WILL COVER…
5. Micro Under £10,000
Small £10,000 to £100,000
Medium £100,000 to £1 million
Large £1 million to £10 million
Major £10 million to £100 million
Super-major > £100 million
Proportion of number and income of organisations by size 2014/15 (%)
8. WHO ARE THE TRUSTEES?
The persons having the general control
and management of the administration
of a charity.
Section 177 of the Charities Act 2011
9. • Voting members of the governing body
• Ultimate legal responsibility for the charity
• A collective group of decision makers
• Elected or appointed in accordance with the charity’s governing
document
• Operate within a formal set of rules
• In a charitable company, company directors and trustees are
the same people
• Trustees often delegate day to day tasks to staff and/or
volunteers
• Almost always unpaid
WHO ARE TRUSTEES?
10. CHARITABLE STATUS
10
• To be award the status an organisation must be set up with
purposes which are exclusively charitable
• These are defined in the Charities Act 2011
• Charity purposes must meet the public benefit
requirement
• Charities demonstrate the public benefit by reporting
annually
• Its all about trust and confidence
Image source: https://www.britannica.com/event/Poor-Law
11. LEGAL AND REGULATORY
DUTIES
CC3 THE ESSENTIAL TRUSTEE
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13. Each group will be allocated a legal duty to
consider.
For the legal duty think about…
• What trustees can do to ensure they
meet this legal duty?
and
• Times you think this legal duty may be
challenged and how trustees should
deal with this?
14. LEGAL FORMS AND LIABLITY
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15. COMPARISON OF LEGAL FORMS
15
Charitable Trust
Charitable
Unincorporated
Association
Charitable
company
limited by
guarantee
(“CLG”)
Charitable
incorporated
organisation
(“CIO”)
Unincorporated Incorporated
16. • Governance liabilities
• e.g. breach of trust under charity law
• Operational liabilities
• e.g. claims from third parties
• Failure to comply with relevant statutory requirements
• e.g. data protection, health & safety, PAYE
• Wrongful and fraudulent trading
TRUSTEE PERSONAL LIABILITY
17. • Incorporation (CIO; company limited by guarantee) but does not offer
complete protection
• Charity Commission has a range of powers, including trustee disqualification
Plus:
• Trustee indemnity insurance
• Good management practices
• Clear roles and responsibilities
• Records of decisions taken
• Provisions in governing document
• Contingency funds
• Professional advice
• Board development
• Risk management
TRUSTEE LIABILITY
18. CHARITY COMMISSION’S VIEW
18
The Charity Commission expects trustees to take their
responsibilities seriously... The Commission recognises that
most trustees are volunteers who sometimes make honest
mistakes. Trustees are not expected to be perfect – they are
expected to do their best to comply with their duties. Charity
law generally protects trustees who have acted honestly and
reasonably.
Charity Commission (2015) CC3: The essential trustee: What
you need to know, what you need to do