Horseytalk.net Trustee Briefing
Essential reading for Trustees of all horsey charities
What are charities?
Charities are organisations set up for the benefit
of the community. They enjoy some tax
advantages from the government. While they
can in certain circumstances trade for profit,
they must use any such profit for the purposes
of the charity.
To qualify as a charity, an
organisation has to meet strict conditions about
its overall purposes, also referred to as its
objects, including demonstrating that its
purposes are for the public benefit. The
organisation also has to be set up with a
constitution or rules which meet certain
conditions. These rules are usually referred to as
a charity’s governing document.
Some charities are set up to give direct help,
advice, grants or support to people in various
kinds of need, for instance older people, or
those with a particular medical condition.
Charities are also set up to carry out research,
provide training or education, or to focus on
meeting the wider needs of a particular
deprived area. And some charities exist mainly
to support other charities, by giving grants and
other assistance to them.
Several kinds of organisation can qualify as a
charity. For instance, some charities are also
registered companies, while others are trusts.
Some charities are also set up by special
legislation. All are subject to the general
principles of charity law.
Most charities are small local organisations, but
some are large national operations with
household names, such as Help the Aged or
Oxfam. Charities receive their money in various
ways, such as donations from the public,
payment for services provided, government
grants and legacies.
An overall description of the framework for charities provided
by the Charity Commission.
It is not a legal document, but an overall
summary of the position, written in everyday language.
Click here to read.
Role of the trustees
Charity trustees are the people who serve on
the governing body of a charity. They may be
known as trustees, directors, board members,
governors or committee members. Charity
trustees are responsible for the general control
and management of the administration of a
charity.
The great majority of trustees
serve as volunteers, and receive no payment for
their work.
Charity trustees come from all walks of life, and
are united by their wish to create positive
change in society. Most people are eligible to
serve as trustees. The work of a trustee should
be rewarding and enjoyable, and an opportunity
to serve the community while learning new
skills.
Trustees and their responsibilities
Charity trustees are the people who serve on
the governing body of a charity. They may be
known as trustees, directors, board members,
governors or committee members. The
principles and main duties are the same in all
cases.
Trustees have and must accept ultimate
responsibility for directing the affairs of a
charity, and ensuring that it is solvent,
well-run, and delivering the charitable
outcomes for the benefit of the public for
which it has been set up.
Compliance – Trustees must:
- Ensure that the charity complies with
charity law, and with the requirements of
the Charity Commission as regulator; in
particular ensure that the charity prepares
reports on what it has achieved and Annual
Returns and accounts as required by law.
- Ensure that the charity does not breach any
of the requirements or rules set out in its
governing document and that it remains
true to the charitable purpose and objects
set out there.
- Comply with the requirements of other
legislation and other regulators (if any)
which govern the activities of the charity.
- Act with integrity, and avoid any personal
conflicts of interest or misuse of charity
funds or assets.
Duty of prudence – Trustees must:
- Ensure that the charity is and will remain
solvent.
- Use charitable funds and assets reasonably,
and only in furtherance of the charity’s
objects.
- Avoid undertaking activities that might
place the charity’s endowment, funds,
assets or reputation at undue risk.
- Take special care when investing the funds
of the charity, or borrowing funds for the
charity to use.
Duty of care – Trustees must:
- Use reasonable care and skill in their work
as trustees, using their personal skills and
experience as needed to ensure that the
charity is well-run and efficient.
- Consider getting external professional
advice on all matters where there may be
material risk to the charity, or where the
trustees may be in breach of their duties.
If things go wrong
The Charity Commission offers information and
advice to charities on both legal requirements
and best practice to help them operate as
effectively as possible and to prevent problems
arising. In the few cases where serious
problems have occurred we have wide powers
to look into them and put things right. Trustees
may also be personally liable for any debts or
losses that the charity faces as a result. This will
depend on the circumstances and the type of
governing document for the charity. However,
personal liability of this kind is rare.
read
more.