To mark Trustees Week, November 2013, the Capacity building team at Macc invited trustees of Manchester charities to attend a free seminar, delivered by Moira Protani, Partner and Head of the Charities Department at Wilsons Solicitors LLP. The session was a great opportunity for existing trustees to revisit their responsibilities and check any gaps in their knowledge -it can be difficult to know what you don’t know!- and a great introduction for new trustees.
If you missed the seminar then there is still good news because a copy of Moira’s Powerpoint presentation is available at www.manchestercommunitycentral.org/trustee-seminar-what-you-know-what-you-should-know-and-what-you-dont-know-about-being-trustee
Moira began the seminar by explaining the context in which trustees carry out their roles, including the responsibility of proving public benefit:
Charity Commission –Part 3: Reporting on public benefit
‘By law, trustees of all registered charities must explain in their trustees' annual report how they have carried out their charity's purposes for the public benefit. This helps people, including funders and beneficiaries, to understand why your charity does what it does.’
There is not currently a statutory definition of ‘public benefit’: the burden and legal requirement to prove public benefit rests firmly with trustees. Public benefit is central to a charity’s work and trustees must be able to demonstrate that who the charity serves (its beneficiaries) and how it does this.
We really liked Moira’s summary of trustee responsibilities:
1. Observe the terms of the governing document, e.g. delegation. Delegation must be documented and it is wise to set financial limits and to recognise there are different levels of responsibility (e.g. delegating a set specific task, e.g. the purchase of new I.T. equipment, is delegating a different level of responsibility than the responsibility for the hiring and firing of staff.)The book stops with the trustees, so remember that delegating responsibility does not absolve trustees of responsibility. Be careful what and how you delegate!
2. Safeguard the charity’s assets by ensuring that income, investments, land, buildings, or any other assets, are appropriately used to further the objects of the charity and by avoiding any activities which may place assets at risk. Take special care when investing charity funds or borrowing funds.
3. Avoid conflicts of interest because they can invalidate trustee decisions in the eyes of the law; call into question the motives behind trustees’ decisions and risk the charity’s reputation. For example, don’t have the same person who signs contracts also signing cheques fulfilling those contracts. Ensure signatories are unrelated.
For support from the Capacity building team at Macc, please contact us on 0333 321 3021 or via email to [email protected]
Essential resources and information for Trustees, Directors, Board Members, Governors, and Committee Members http://www.manchestercommunitycentral.org/support-groups/trustees-toolkit
Charity Commission publication The essential trustee: what you need to know (CC3) www.charitycommission.gov.uk/publications/cc3.aspx
Moira Protani is a Partner at Wilsons Law; Moira advises on the establishment of charities, trustee powers and duties, schemes, taxation, grant-making, fundraising, mergers, the disposal of land and buildings, dealing with the Charity Commission, constitutional and good governance issues. For further information, please visit www.wilsonslaw.com