A charity trustee is a person who sits on the governing body of a charity and is legally responsible for its overall management, control and governance, including ensuring the charity acts within its charitable purposes and manages its resources responsibly.
How the trustee role works
Trustees are appointed according to a charity's governing document and generally act collectively as a board, sharing responsibility for decisions rather than acting individually. Their duties include acting in the charity's best interests, managing resources responsibly, complying with the governing document and relevant law, and avoiding conflicts of interest. Trustees are also responsible for accountability, including signing off the trustees' annual report and accounts, prepared in line with the Charities SORP where it applies, before they are filed with the Charity Commission.
How UK charity boards operate
- A group of trustees meets quarterly as a board to review the charity's finances, activities and risks, making collective decisions in the charity's best interests.
- A new trustee completes an induction covering their legal duties, the charity's governing document and current strategic priorities before taking part in board decisions.
- Trustees sign off the charity's trustees' annual report and accounts each year before they are filed with the Charity Commission.
- A trustee declares a conflict of interest and withdraws from a board discussion and vote on a contract involving a company they are also connected to.
How Advantage supports trustee reporting
Advantage helps charities produce the financial reporting trustees need for board meetings and annual filings, configuring Dynamics 365 Business Central to give clear, timely visibility of fund balances, income and expenditure.
Frequently Asked Questions
Are charity trustees usually paid?
No, most charity trustees act as volunteers, though limited exceptions exist, such as payment for specific services provided to the charity where the governing document and relevant rules allow it.
What happens if trustees fail in their duties?
Trustees can be held personally responsible in some circumstances, and serious failures may lead to regulatory action by the Charity Commission, including in some cases removal from the role.
Do all trustees need the same skills?
No, but boards generally aim for a mix of skills and experience relevant to the charity's work, such as finance, legal or sector-specific expertise, alongside a shared commitment to the charity's purpose.
