The Charity Commission has published new guidance on paying trustees, which continues to emphasise the voluntary principle of the role.
After consulting charities and sector bodies, the commission has redesigned its CC11 guidance to make it easier to use.
It continues to stress that charities must consider all other options before agreeing to pay a trustee and that they must manage the resulting conflict of interest.
Charities must also have legal authority to pay a trustee through their governing document and are instructed to decide it is in their best interests before doing so.
The guidance warns charities of the risk that a paid trustee may become overly influential, which can make it difficult for them to comply with their legal duties.
It says the amount a charity pays a trustee must be reasonable and in its best interests.
“Being a trustee is generally a voluntary role,” its guidance reads.
“This is what makes the charity sector unique and promotes trust and confidence in charities. As a result, external reaction to paying trustees is often negative.”
The revised guidance is split into a range of trustee payment scenarios, including supplying goods or services to the charity, loss of earnings, and being employed.
The commission said it has redesigned the guidance to help trustees think through the issues and risks and determine if they have powers they can use or if they need authority from the regulator.
Aim to make legal position ‘even clearer’
The commission’s director of communications and policy Paul Latham said: “The charity sector is founded on public trust and voluntary trusteeship is a key component of that. The vast majority of trustees are unpaid and give their time willingly and enthusiastically.
“However, some charities will face circumstances where they consider whether to pay one or more trustees. It is vital that they get these decisions right and comply with the law on paying trustees or people or organisations connected to them.
“With the launch of this redesigned guidance, we hope to make the legal position on paying trustees even clearer, whilst helping trustees understand what’s expected of them when reaching these decisions.”
Expenses do not constitute trustee payments and the commission’s guidance says that reasonable costs such as travel and accommodation can be reimbursed.
It adds that childcare costs or adjustments enabling those with disabilities to conduct their role might also be considered reimbursable expenses.
Latham added: “Expenses are not a form of trustee payment, those are a reimbursement of the reasonable costs incurred to perform that role.
“Whilst trustees are not required to claim them, in making clear that trustees can do so, charities may avoid putting off good candidates from joining their board because of the financial impact.”
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