Several years ago, I wrote a fact sheet for my firm on whether the trustee role was that of a poisoned chalice. It is not a role to be taken on lightly, but it is an incredibly fulfilling role and of great value to the sector. A trustee’s key role is to work with other trustees to set the charity’s strategy, ensure the charity runs effectively, and follows good practice. As a body, trustees are custodians of the charity’s assets for the time that they’re in office. That sounds simple, but as usual the devil is in the detail. Let’s go back to basics and look at it from an individual perspective and that of the charity.
Individual
Why do people want to become trustees? It may be purely an altruistic decision to give something back to the community. It may arise from a personal experience with the charity or something related that leads to you wanting to be involved. It may be simply that someone asked you. Whatever your route in, you need to do your own due diligence.
Consider whether you have sufficient time to do the role. The main time will be attendance at trustees’ meetings, reading documents provided prior to these meetings, a possible annual strategy day and, if appointed to a committee, time to fulfil that role as well. The actual time needed to carry out the role will be different in every case so it is worth asking the charity for further clarity as your application progresses.
Remember that trustees are generally not allowed to be paid. Expenses can be reimbursed but, in most circumstances, no remuneration can be paid to trustees without Charity Commission approval.
Having decided to get involved with the charity sector, you should consider what type of charity you wish to get involved with (unless you’ve already been approached directly). I think it is important to be involved in an organisation that you have an affinity with. If you are not an animal lover, an animal charity is probably not appropriate. Once you have selected a charity, do your research: review the website, its Charity Commission entry and its Companies House listing (if appropriate); review the latest accounts; Google the charity and look on social media. Prepare a CV for forwarding to the charity. This is not about qualifications but work and life experiences. Contact the charity to discuss the opportunity to be a trustee.
It is important to talk to other trustees and the CEO to get a further understanding of what the charity does and what is required of you. If possible, a visit to the premises is highly recommended. Many charities will invite prospective trustees to a trustees’ meeting so that they can see how things work first-hand.
Charity
When considering appointing a new trustee, it is important to assess the skills you already have on the board; what expertise are you missing or which areas need strengthening? Finances are important, so the luxury of having two financial trustees is a great asset. If you are looking to do a property development, someone who is experienced in this field would be useful. Having identified the role, you need to start your search. This is not an easy task.
Traditional ways are by using personal networks or advertising. Social media is a great way of contacting a wider audience. Vacancies should be shown on your website and you could consider writing an article for a local newspaper, explaining the great work your charity is doing. The article can include a request for new trustees.
Be careful to ask for the right qualities. It’s not about having a degree. Rather, it is about work and life skills. Don’t put off half of your potential pool of applicants by putting an obstacle in place at the start.
Having identified someone (hopefully), arrange to meet them. Understand what they can add and how they can help to move the charity forward. Suitable candidates should be given more information about the charity, then invited to a trustee meeting as an observer; but do allow them to contribute. They may be able to provide some valuable fresh insight. It may be worth asking a beneficiary of your charity to meet the prospective trustee. The information shared between these two parties can provide useful perspective to each of them.
Once an appointment has been made, ensure there is a proper induction process in place. This includes providing them with 12 to 18 months of meeting minutes, a copy of the trust deed or constitution, the most recently prepared financial statements, and latest management accounts. Furnish them with details of all the services the charity provides and introduce them to the senior management team. Well-informed trustees will carry out their function more effectively. Ask them to read the Charity Commission’s CC3 – The Essential Trustee: What You Need To Know, What You Need To Do, and its seven five-minute guides for charity trustees. Finally, introduce them to the Charity Governance Code.
Conclusion
It is crucial that both the charity and the potential trustee do their research. It is an important role, which contributes not only to the direction of the charity but also its culture and the impact it has on its beneficiaries and society in general. It is not a role without its challenges but is rewarding and one that helps beneficiaries to have a more fulfilling life. It is not a poisoned chalice if approached sensibly and with commitment.
Susan Robinson is a partner at Kreston Reeves
Charity Finance wishes to thank Kreston Reeves for its support with this article
