Call yourself a charity trustee?

With high profile cases like the Kids Company debacle in the news and claiming the scalp of chair of the trustees Alan Yentob, few would question the potentially onerous nature of being a charity trustee. Of course there are huge rewards too, and that's why many thousands of people volunteer to be trustees, but do they know what they are letting themselves in for?

That's not meant to be a question to send chills down the spines of trustees, but a practical one about the extent to which they understand their responsibilities and their personal exposure, should things go wrong. Trustees could find themselves personally liable, for example, if an employee or a third party had a legal claim against the charity, or if a volunteer or a guest at an event was injured and there was no adequate insurance in place.

The responsibilities of trustees are set out fully in the Charity Commission's guidance, which every trustee must read when taking up their post. The current guidance (as of January 2016) is here but like any guidance it answers many questions and poses many more.

One important question that seems to confuse many well intentioned volunteers is, who exactly is a trustee? After all, if you don't consider yourself to be one, you probably won't read the guidance in the first place.

What is clear is that labels don't tell the whole story. What you call yourself, or who your charity chooses to list on its Annual Return as trustees will not be definitive. It's much more about what your role is and the part you play in the direction and governance of the organisation. As the guidance states,

"If you are involved in running a charity but don’t know whether you are a trustee, check the charity’s governing document. (This is the document that sets out the charity’s rules; it may be a constitution, trust deed, articles of association or similar document.) It will tell you which body has ultimate authority and responsibility for directing and governing the charity. All properly appointed members of that body are charity trustees in law, whatever they are called (trustees, directors, committee members, governors or something else). If you are a member of that body, you are automatically a charity trustee. You share, with all members of that body, equal responsibility for the charity."

There are ways and means for trustees to protect themselves and the charities they give their time to. Public liability and trustee insurance, incorporation to protect assets and to limit personal exposure, an active risk management regime - all of these things are examples of good practice and common sense that trustees should give due regard to.

And if you think that's a matter for someone else and not you, think again!

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