Guide

Understand your duties as a charity trustee

The six key duties every charity trustee must follow, with guidance on eligibility, conflicts of interest, liability, and remuneration rules in England and Wales.

UK-wide Charity

If you are a charity trustee, you have legal duties under charity law. Trustees have ultimate responsibility for the charity's management and must ensure it operates lawfully and for its charitable purposes.

The term 'trustee' applies regardless of your official title - you may be called a director, board member, governor, or committee member, but if you have general control and management of the charity, you are a trustee in law.

Who this guidance applies to

This guidance applies to charities registered in England and Wales, regulated by the Charity Commission. Different rules apply in Scotland (OSCR) and Northern Ireland (CCNI).

The six key trustee duties

The Charity Commission's CC3 guidance 'The Essential Trustee' sets out six fundamental duties that all trustees must follow. These are not optional - they are legal requirements.

Duty 1 - Purposes and public benefit

Your charity exists to achieve specific purposes set out in its governing document. You must ensure all activities directly further these purposes and provide identifiable public benefit.

What this means in practice

  • Know your purposes: Read and understand your charity's objects clause - this defines what you can and cannot do
  • Review activities regularly: Check that all programmes and spending align with your stated purposes
  • Demonstrate public benefit: Be able to explain who benefits from your charity's work and how
  • Avoid mission drift: Do not expand into activities outside your charitable objects, however worthy they seem

Example: A charity established to relieve poverty in a specific town cannot use funds to support environmental projects, even if trustees believe this would benefit the community.

Duty 2 - Comply with your governing document and the law

Trustees must follow the rules in their charity's governing document (constitution, trust deed, or articles of association) and comply with all relevant legislation.

Key compliance areas

  • Governing document: Follow procedures for meetings, appointments, decision-making, and amendments
  • Charities Act 2011: The primary charity legislation in England and Wales
  • Charity Commission requirements: File annual returns and accounts on time
  • Employment law: If you employ staff, comply with contracts, minimum wage, and workplace rights
  • Health and safety: Ensure safe premises and activities
  • Data protection: Comply with UK GDPR for personal data
  • Safeguarding: Protect children and vulnerable adults if relevant to your activities

Serious incident reporting: You must report serious incidents to the Charity Commission - including fraud, safeguarding concerns, significant financial loss, and criminal activity.

Duty 3 - Act in your charity's best interests

Every decision must be made solely in the charity's best interests. Personal opinions, preferences, or connections must not influence your judgment.

What this requires

  • Collective decision-making: Act as a board, not as individuals - once a decision is made, all trustees share responsibility
  • Avoid conflicts: Identify, declare, and manage any conflicts of interest
  • No personal benefit: Do not use trustee status to gain personal advantages
  • Independent judgment: Consider all options objectively, even if you were nominated by a particular organisation

Managing conflicts of interest

A conflict exists when your personal interests - or those of connected people or organisations - could influence a charity decision. Conflicts must be identified early, declared formally, and managed appropriately.

Duty 4 - Manage resources responsibly

Trustees must protect the charity's assets and ensure resources are used only for charitable purposes. This includes money, property, reputation, and people.

Financial stewardship

  • Budgeting: Approve realistic budgets and monitor actual spending
  • Reserves: Maintain appropriate reserves for stability, but not excessive accumulation
  • Investment: Invest assets prudently, considering ethical constraints in your governing document
  • Controls: Implement financial controls - separation of duties, authorisation limits, reconciliations
  • Risk management: Identify major risks and put mitigation measures in place

Protecting reputation

Your charity's reputation is an asset. Consider how decisions affect public trust and confidence in the charity sector as a whole.

Duty 5 - Exercise reasonable care and skill

Trustees must apply the level of care that a reasonable person would use in managing their own affairs. If you have professional expertise (for example, as a solicitor or accountant), you are expected to apply that expertise.

What this means

  • Prepare for meetings: Read papers in advance and come ready to contribute
  • Ask questions: If you do not understand something, seek clarification before voting
  • Take advice: For complex matters, obtain appropriate professional advice
  • Higher standard for experts: A finance trustee is expected to scrutinise accounts more carefully than a non-expert
  • Reasonable standard: You do not need to be perfect, but you must be diligent

Duty 6 - Ensure accountability

Charities operate on public trust. Trustees must be open and transparent about what the charity does and how it uses resources.

Accountability requirements

  • Annual accounts: Prepare and file accounts on time (within 10 months of year-end)
  • Annual return: Submit to Charity Commission with accurate information
  • Public information: Make governing document, accounts, and trustee details available on request
  • Serious incidents: Report promptly to the Charity Commission
  • Stakeholder engagement: Communicate with beneficiaries, funders, and the public about your work

Who can be a trustee

Anyone can become a trustee provided they meet the minimum age requirement for your charity type and are not disqualified.

Automatic disqualification

Certain circumstances automatically disqualify someone from acting as a charity trustee. Acting while disqualified is a criminal offence.

Trustee liability

Personal liability for trustees is rare, but possible. The extent of protection depends on whether your charity is incorporated.

Protecting yourself as a trustee

Several safeguards can reduce your personal exposure to liability:

  • Incorporate your charity: CIOs and charitable companies provide limited liability protection
  • Trustee indemnity insurance: The charity can purchase insurance to cover legal costs and claims
  • Act honestly and reasonably: Courts and the Charity Commission can relieve trustees who acted in good faith
  • Document decisions: Keep clear minutes showing the basis for decisions
  • Take professional advice: For significant decisions, obtain and follow appropriate advice

Can trustees be paid?

Trusteeship is generally a voluntary role. However, payment is possible in limited circumstances.

Getting started as a new trustee

Induction essentials

  • Read your governing document: Understand the charity's purposes, powers, and procedures
  • Review recent accounts and reports: Understand the financial position and activities
  • Meet key people: Introduction to staff, volunteers, and fellow trustees
  • Complete eligibility declaration: Confirm you are not disqualified
  • Register interests: Declare any potential conflicts
  • Read CC3: The Essential Trustee guidance covers your responsibilities in detail

Ongoing development

Trustee training is available from organisations including NCVO, the Charity Commission, and local CVS organisations. Many charities budget for trustee development as part of governance costs.

  1. Read your governing document

    Understand your charity's objects, powers, and decision-making procedures. This is your primary rulebook.

  2. Confirm your eligibility

    Check you are not disqualified from acting as a trustee. Complete a declaration of eligibility.

  3. Declare any conflicts of interest

    Register all potential conflicts with the board. Update when circumstances change.

  4. Attend trustee induction

    Meet fellow trustees and staff. Review accounts, strategy, and key policies.

  5. Read CC3 - The Essential Trustee

    The Charity Commission's core guidance explains your duties in detail. Essential reading for all trustees.

  6. Consider trustee indemnity insurance

    Check whether your charity has TII in place. If not, discuss with the board.