What Are Charity Trustees and What Do They Actually Do?

Introduction

Every charity, large or small, relies on the people who oversee its work and ensure it stays true to its purpose. These people are known as charity trustees. They are the governing body of the organisation and play a vital role in ensuring that the charity operates legally, responsibly, and effectively.

If you are thinking of becoming a trustee or setting up a charity, understanding what trustees do is essential. This article explains who they are, what their responsibilities involve, and what skills and qualities make a good trustee.

Who Are Charity Trustees?

Charity trustees are the individuals who take overall responsibility for a charity’s management and direction. In law, they are the people who have ultimate control over how a charity is run, regardless of their job title.

They may be called board members, committee members, or directors, depending on the charity’s structure, but their legal duties remain the same. Trustees act collectively as a group, making strategic decisions rather than handling day-to-day operations.

Trustees can be volunteers or, in some cases, paid if the charity’s governing document allows it. Most trustees, however, volunteer their time without payment other than out-of-pocket expenses.

The Main Responsibilities of Charity Trustees

Trustees’ duties are set out in charity law, primarily under the Charities Act 2011, and by the Charity Commission. Their responsibilities cover governance, compliance, and financial management.

1. Ensuring the charity carries out its purposes
Trustees must make sure the charity operates in line with its stated charitable objectives. Every decision should support these aims and benefit the public.

2. Acting in the charity’s best interests
Trustees must always put the charity’s interests above personal or professional gain. They should manage conflicts of interest and make decisions that promote long-term success and sustainability.

3. Managing resources responsibly
Trustees are legally responsible for the charity’s money, property, and assets. They must ensure funds are used properly, budgets are realistic, and financial records are accurate.

4. Complying with the law and the charity’s constitution
Trustees must follow the rules set out in the charity’s governing document and comply with relevant laws, including reporting to the Charity Commission and HMRC where required.

5. Acting with reasonable care and skill
Trustees are expected to use their knowledge and experience to make informed decisions. They should ask questions, seek professional advice when needed, and stay engaged with the charity’s activities.

6. Being accountable
Trustees must be transparent about the charity’s work, performance, and finances. They are responsible for ensuring accurate annual reports and accounts are submitted on time.

What Trustees Do in Practice

Trustees’ work depends on the charity’s size and nature, but generally, their role includes:

• Attending regular board meetings to discuss strategy, finances, and policies

• Approving budgets and monitoring financial performance

• Supporting the chief executive or volunteers with guidance and oversight

• Ensuring legal and regulatory compliance

• Approving key policies on safeguarding, fundraising, and data protection

• Representing the charity at events or with stakeholders

In small charities, trustees may also take on operational tasks such as organising events, managing volunteers, or handling finances directly. In larger charities, trustees tend to focus more on strategy and oversight.

What Trustees Cannot Do

While trustees have significant control, there are limits to their authority. They cannot use charity funds for personal benefit, act outside the charity’s purposes, or make decisions that would cause conflicts of interest. Trustees are also personally responsible if they act negligently or unlawfully.

This is why it is important for trustees to read and understand their charity’s governing document and to seek advice when unsure about a decision.

Skills and Qualities of a Good Trustee

Trustees come from all walks of life, and diversity of experience is one of the strengths of a good board. There is no single background that suits every charity, but key qualities include:

• Integrity and honesty

• Strategic thinking and decision-making skills

• Financial awareness

• Commitment to the charity’s cause

• Willingness to work as part of a team

• Understanding of governance or willingness to learn

Some charities look for specific expertise such as law, finance, marketing, or HR, while others value community experience and lived understanding of the charity’s beneficiaries.

Legal and Financial Accountability

Trustees are collectively responsible for ensuring the charity meets its legal obligations. This includes:

• Submitting annual returns and financial statements to the Charity Commission

• Keeping accurate accounting records

• Managing risks, including safeguarding and data protection

• Ensuring fundraising activities comply with regulations

If something goes wrong, trustees may be held accountable, particularly if they have acted irresponsibly or dishonestly. However, trustees who act in good faith, follow procedures, and seek advice when needed are well protected under the law.

Example Scenario

Imagine a small charity that provides after-school tutoring for disadvantaged children. The trustees meet every two months to review finances, plan community events, and ensure tutors are properly trained and vetted.

When the charity receives a large grant, the trustees approve a new budget, decide how funds will be used, and monitor spending to ensure it aligns with the charity’s objectives. They do not run the tutoring sessions themselves but provide oversight to make sure the work benefits the community as intended.

Support Available for Trustees

The Charity Commission provides detailed guidance on trustees’ roles, responsibilities, and reporting requirements. Many local councils and voluntary organisations also run training workshops or mentoring schemes for new trustees.

Working with a professional accountant or adviser can also help trustees stay on top of financial management and compliance, especially for charities with growing budgets or complex funding arrangements.

Common Mistakes Trustees Should Avoid

• Failing to read or follow the governing document

• Overstepping into day-to-day management rather than focusing on strategy

• Ignoring financial oversight or delegating it entirely to one person

• Failing to manage conflicts of interest properly

• Missing deadlines for annual filings or reports

Good governance relies on trustees being engaged, informed, and proactive in managing the charity’s affairs.

Conclusion

Charity trustees are the backbone of every charitable organisation. They ensure that funds are used responsibly, activities align with charitable aims, and the organisation stays compliant with the law. Their role combines leadership, oversight, and accountability, all guided by a commitment to public benefit.

Being a trustee is a rewarding way to make a difference, but it also carries legal and ethical responsibilities. Whether you are thinking of becoming a trustee or setting up a new charity, understanding what trustees do is the first step to running an effective and trusted organisation.