Charity risk barometer 2023
The charity sector faces many challenges, the financial crisis being a key factor, but it does so from a position of strength and resilience.
It’s an interesting question – what are the responsibilities of a charity trustee? It’s certainly one you should be asking if you’re thinking about taking up the role of trustee at a local charity.
A trustee’s role can, however, change based on the size and nature of the organisation. For example, in a smaller charity a trustee’s responsibilities may have more to do with the day-to-day running of the organisation than in a larger charity where there are more people to take this on.
In terms of the standard duties of a charity trustee, there are a usually a range of opportunities depending on the needs of the charity. The duties and responsibilities of a charity trustee could range from:
All operations and decisions must also meet legal and regulatory requirements and therefore a trustee must be well-versed in these. The Government provides detailed advice on the legal duties of a charity trustee.
This all sounds pretty straightforward, but what if something goes wrong – what if the board of trustees doesn’t meet some or all of those duties and responsibilities? Charity trustees can be jointly liable for decisions made as a board, so it’s important to understand how a bad decision could affect you personally.
It could even stem from employees or volunteers because as a charity trustee you are of course responsible for what they do – or don’t do.
In order to give charity trustees the confidence to make decisions, check whether the charity has trustees’ liability insurance in place.
Trustees’ liability insurance is a safety net designed to protect a trustee who makes an honest mistake. It can provide cover for trustee liability claims arising from a wrongful act made by a trustee and can include the cost of your legal defence – which can be significant.