Charity trustees share responsibility for an organisation’s direction, resources and governance. Staff or committees may carry out much of the work, but the board remains accountable for how the charity is managed.
Consider a hypothetical community transport charity planning an extra weekly service. Before approving it, trustees need to examine its purpose, affordability and risks.
The six responsibilities below draw on Charity Commission guidance for England and Wales. Charities in Scotland and Northern Ireland should consult OSCR and the Charity Commission for Northern Ireland respectively.
1. Keep decisions connected to charitable purpose
Before discussing vehicles or timetables, establish how the proposed service advances the charity’s purposes and benefits the people it exists to support.
Start with the purposes written in the governing document. Who would use the service? What need would it meet? How would the charity assess its benefit?
These questions help the board distinguish a worthwhile expansion from an attractive opportunity that falls outside its remit. Trustees should be able to explain why the proposal belongs within this charity’s work.
2. Understand how the charity’s resources are being used
Trustees can use reports from accounting software for charities to examine spending and fund balances, then question what those figures mean for the proposal.
For the additional transport service, request a cost forecast covering staff, fuel, maintenance and other commitments. Establish which income would fund it and whether that use complies with any funding restrictions. Assess affordability against those restrictions and existing commitments, rather than the bank balance alone.
The treasurer may lead the financial discussion, but responsibility remains collective. A non-finance trustee can ask what assumptions support the forecast, how rising costs would affect it and whether existing services would lose resources. Agree safeguards against error, fraud and misuse, including clear purchasing authority and checks on spending.
3. Follow the governing document and applicable law
The governing document is also the starting point for understanding the board’s powers and decision-making procedures.
Check who can approve a significant commitment and which meeting or voting requirements apply. Follow those procedures before committing the charity to the expansion.
Compliance also extends to the service itself. Ask staff or advisers to identify the operational requirements and explain how the charity will meet them. They can investigate the detail and recommend arrangements; trustees need sufficient assurance to authorise the proposal. That includes checking whether arrangements for the existing service remain appropriate for the expanded one.
4. Put the charity’s interests first
Suppose a trustee’s relative offers to supply a vehicle. Disclose that connection before the board considers the offer, then follow the governing document and applicable conflict rules.
Disclosure is the starting point. The board must establish who can participate in the decision and whether the transaction requires specific authorisation.
Compare the options against the charity’s needs, weighing each vehicle’s cost and suitability. Personal loyalty to a colleague or supplier should give way to that assessment. Record the conflict, how it was managed and the reasons for the eventual choice.
5. Make informed decisions and seek advice when needed
Reasonable care and skill involve preparation, attention and constructive challenge. Read the papers before the meeting, identify gaps and ask for explanations until you understand the decision being requested.
For the proposed service, examine demand estimates and staffing capacity, and identify any contract terms that need specialist advice. Draw on trustees’ different skills while inviting questions from everyone around the table.
If missing information could materially affect the decision, request it and consider deferring approval. Where approval depends on conditions being met, specify those conditions and identify who will confirm that they have been satisfied.
6. Record decisions and oversee delegated work
Once the board approves the service, staff might organise the timetable and suppliers. Trustees should set spending limits, reporting arrangements and circumstances requiring further approval.
A useful decision record captures the evidence considered, conflicts managed, reasons for approval, conditions attached and actions assigned. Identify who will carry out each action and set a review date. The board must also ensure the charity meets its applicable accounting and regulatory reporting obligations.
At the review, compare delivery with the original assumptions: are people using the service, are costs manageable and has it affected existing provision?
For your next board meeting, choose one live proposal and check whether its papers provide enough evidence to make, explain and later review the decision.
David Prior
David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.
