Becoming a charity trustee can be a rewarding way to contribute your skills and experience to a cause that matters to you. It can also provide valuable board-level experience for professionals building a non-executive portfolio.
But trusteeship should not be viewed simply as volunteering. Charity trustees are board members with legal duties and collective responsibility for the governance of the organisation.
This short guide explains what charity trustees do, their principal duties and what prospective and newly appointed trustees should consider.
Key takeaways
- Charity trustees have ultimate responsibility for the governance and direction of their charity.
- Trustees must act collectively in the charity’s best interests and ensure that it pursues its charitable purposes.
- The role carries legal duties, including responsibilities for the charity’s resources, risk, compliance and accountability.
- Most trustee roles are unpaid, although reasonable expenses are typically reimbursed.
- Before accepting a trusteeship, prospective trustees should carry out due diligence on the charity, its finances, governance, risks and board.
- Trustees should understand the regulatory requirements applying to charities in their part of the UK.
What is a charity trustee?
📝 Definition: A charity trustee is one of the people with ultimate responsibility for governing a charity and directing how it is managed and run.
The title varies between charities. Trustees may also be known as directors, board members, governors or committee members. Whatever their title, they are charity trustees if they have ultimate responsibility for governing the charity and directing how it is managed and run.
Trustees work collectively as a board. Their role is not to manage every aspect of the charity’s day-to-day operations, particularly where there is a chief executive and executive team. Instead, the board provides direction, oversight and challenge, while remaining ultimately accountable for the charity.
For trustees of charitable companies, there is an additional consideration: they are normally both charity trustees and company directors and therefore need to understand the duties arising under both charity and company law.
Charity regulation across the UK
Charity law and regulation differ across the UK. The Charity Commission for England and Wales regulates charities in England and Wales; the Office of the Scottish Charity Regulator (OSCR) regulates charities in Scotland; and the Charity Commission for Northern Ireland (CCNI) regulates charities in Northern Ireland.
While the fundamental principles of good trusteeship are similar, trustees should refer to the guidance and requirements of the regulator relevant to their charity.
What are the main duties of a charity trustee?
The Charity Commission for England and Wales identifies six main duties for charity trustees, summarised below. Trustees of charities in Scotland and Northern Ireland should refer to OSCR and CCNI respectively for the specific duties and regulatory requirements that apply to them.
Trustees must:
1. Ensure the charity carries out its purposes for the public benefit
Trustees need to understand why the charity exists and ensure its activities and resources are directed towards those purposes.
2. Comply with the charity’s governing document and the law
The governing document sets out how the charity should operate, including its purposes, trustee appointments and decision-making arrangements. Trustees also need to understand the wider legal and regulatory requirements relevant to the organisation.
3. Act in the charity’s best interests
Trustees should make independent, informed decisions for the benefit of the charity. This includes identifying and appropriately managing conflicts of interest.
4. Manage the charity’s resources responsibly
Trustees are responsible for safeguarding the charity’s assets and ensuring resources are used appropriately. This includes oversight of financial sustainability, internal controls and material risks.
5. Act with reasonable care and skill
Trustees are expected to devote sufficient time and attention to the role, prepare for and participate in board meetings and use their knowledge and experience appropriately. They should seek professional advice where necessary.
6. Ensure the charity is accountable
Trustees are responsible for appropriate reporting and accountability, including compliance with statutory accounting and reporting requirements.
These are board responsibilities. Delegating activities to the chief executive, employees, committees or advisers does not remove the board’s ultimate accountability.
Are charity trustees paid?
Trusteeship is generally a voluntary, unpaid role. Trustees can normally be reimbursed for reasonable expenses properly incurred in carrying out their duties, such as travel to board meetings.
Payment for carrying out trustee duties is different and is subject to specific legal requirements. A charity considering remunerating a trustee must ensure that it has the appropriate authority to do so and follows the applicable rules.
Can trustees be personally liable?
Potential liability is one reason prospective trustees should understand both their duties and the legal structure of the organisation they are joining.
Incorporated charities, including charitable companies and charitable incorporated organisations (CIOs), generally provide greater separation between the charity’s liabilities and those of individual trustees. Unincorporated charities can expose trustees to greater personal liability in some circumstances.
The legal structure does not, however, remove trustees’ duties. Trustees may still face personal consequences where, for example, they breach their duties or act improperly.
This is why prospective trustees should understand the charity’s legal structure, financial position and principal risks before accepting an appointment.
What should you consider before becoming a trustee?
Treat a prospective trustee appointment with the same seriousness as any other board appointment.
Start with three fundamental questions:
- Do I understand and support the charity’s purpose?
- Can I make a useful contribution to this particular board?
- Am I comfortable with the organisation, its governance, financial position and risks?
Meeting the chair, chief executive, where there is one, and other trustees can be particularly valuable. The objective is not simply to determine whether the charity wants you; it is also to decide whether you should join the board.
Prospective trustees should also check that they are legally eligible to serve and refer to the requirements of the relevant charity regulator.
Once appointed: get to know the organisation
Not every charity will have a formal trustee induction programme, particularly smaller organisations. As a new trustee, take time to understand the charity’s purpose, finances, strategy, key risks and governance arrangements.
Read recent board papers and accounts, speak with the chair and other trustees, and, where possible, spend time with the people delivering the charity’s work. This will help you understand the organisation and contribute effectively from your first few board meetings.
Trustee role or commercial NED role?
There are important similarities between being a trustee and serving as a non-executive director on a commercial board. Both require strategic thinking, independent judgement, constructive challenge, oversight and collective decision-making.
There are also differences. Charity trustees must remain particularly focused on the organisation’s charitable purposes and public benefit, and the legal and regulatory framework differs from that applying to commercial companies.
For aspiring non-executive directors, a trustee appointment can therefore provide meaningful board experience but it should not be approached simply as a stepping stone to a paid NED role. The charity deserves trustees who are genuinely committed to its purpose and prepared to fulfil the responsibilities of the position.
📌 Practical steps for aspiring trustees
Before applying for or accepting your first trustee appointment:
- Understand the role and your legal duties.
- Define the contribution you can make to a board.
- Target organisations whose purpose genuinely matters to you.
- Carry out due diligence before accepting an appointment.
- Clarify the expected time commitment, including committees and work between meetings.
- Continue developing your governance and board-level knowledge.
NEDonBoard, Institute of Board Members supports aspiring and experienced board members in developing the governance knowledge, skills and confidence required to contribute effectively in the boardroom.
For professionals seeking their first trustee or non-executive appointment, the NED Accelerator® Programme provides a structured pathway covering board positioning, finding and applying for roles, interviews, due diligence, appointment and the first stages of a board role.
Frequently asked questions
1️⃣ What does a charity trustee do?
Trustees collectively govern a charity. They ensure that it pursues its charitable purposes, oversee strategy, resources and risk, hold management to account where there is an executive team, and ensure that the organisation meets its legal and regulatory obligations.
2️⃣ Is a trustee the same as a non-executive director?
There are significant similarities in how trustees and NEDs contribute at board level, but the legal frameworks are different. A trustee of a charitable company may also legally be a company director.
3️⃣ Are trustee positions paid?
Most are voluntary and unpaid, although reasonable expenses can generally be reimbursed. Payment for trustee duties is possible only in particular circumstances and subject to specific rules.
4️⃣ Can becoming a trustee help me secure a future NED role?
Trusteeship can provide valuable board-level experience and evidence of governance, oversight and collective decision-making. However, a trustee role should be taken because you can contribute meaningfully to the charity, rather than solely as a route to a paid NED appointment.
5️⃣ What should I check before accepting a trustee role?
Review the charity’s purpose, governing document, finances, strategy, board structure, key risks and relevant regulatory history. Understand the time commitment, current challenges and why the board is recruiting, and check the requirements of the relevant charity regulator.
6️⃣ How competitive are charity trustee roles?
Some trustee appointments can be highly competitive, particularly for well-known charities or roles requiring specific skills and experience. The fact that a position is unpaid does not necessarily mean that the recruitment process will be less rigorous. Expect to have to submit a tailored application and NED CV and go through one or more interviews.
Approach the process as you would any board appointment. This is one of the areas covered in the NED Accelerator® Programme, which supports aspiring board members through the process from defining their board value proposition and targeting suitable roles to applications, interviews, due diligence and appointment.
