Horseytalk.net/Hoofbeat
CHARITY WATCH
Horseytalk.net Trustee Briefing
Can trustees delegate their
responsibilities?
The short answer
Trustees can generally delegate certain
powers to agents or employees, but will
and must always retain the ultimate
responsibility for running the charity.
In more detail
Delegation powers:
Trustees always have the
ultimate responsibility for running their charity.
But they generally have the power to delegate
certain powers to agents, subject to their
governing document, and any relevant
legislation. The Trustee Act 2000 says that
trustees of unincorporated charities can
delegate:
-
carrying out a decision that the trustees have
taken
- the investment of assets, including land
subject to the trust
- raising funds for the trust other than by the
profits of trade which is an integral part of
carrying out the trust’s charitable purposes
- or any other function prescribed by an order
made by the relevant Secretary of State..
Dealing with third parties:
Someone acting as
a delegate or agent of the trustees should
always make clear in dealings with third parties
that they are acting in that capacity (particularly
if they are not an employee of the charity), and
should always record in writing what was
agreed in the conversation
How do trustees make
decisions?
The short answer
All decisions by the trustees concerning a
charity are taken by all the trustees, acting
collectively and as a team. However, the
decisions need not be unanimous; a
majority decision is sufficient unless the
charity’s governing document states
otherwise.
In more detail
Collective responsibility:
Subject to any power
of delegation there is a general rule that
trustees must take personal responsibility for
their decisions, and that all decisions concerning
the charity must be taken by the trustees acting
together.
Setting up groups or committees:
Trustees can
always invite some of their number to look into
particular matters and make recommendations.
The decision whether or not to act on the
recommendations is for the trustees to take
together. In some cases the governing
document of a charity may permit the trustees
to set up committees with delegated powers to
carry out particular functions.
Delegating to employees:
The trustees of some
charities may need to delegate decisions on
dayto-day management matters to employees.
In these cases the scope of the authority should
be clearly laid down in writing and instructions
given for decisions on important matters to be
reported to the trustees. Trustees should
establish proper reporting procedures and clear
lines of accountability. Information and guidance
for trustees who employ staff is provided by a
number of organisations, including the National
Council for Voluntary Organisations (NCVO) and
the National Association for Voluntary and
Community Action (NAVCA).
read more.