Trustee Duties Made Simple for Charitable Trusts

If you’ve been asked to join a charitable trust board, you probably wonder what’s expected. In plain English, a trustee’s job is to protect the trust’s purpose, its money, and its reputation. Think of it like looking after a friend’s house while they’re away – you keep the doors locked, the bills paid, and make sure everything runs smoothly.

Key Responsibilities You Can Start With

1. Follow the Trust’s Purpose. Every trust has a governing document – often called a deed or deed of trust. It spells out what the trust is set up to do. Your first duty is to read it carefully and make sure every decision lines up with that purpose. If the deed says the trust supports local youth sport, you can’t suddenly spend money on a new office building.

2. Keep the Finances in Check. Trustees must oversee income, expenses, and investments. That means approving budgets, watching cash flow, and ensuring that funds are used only for approved activities. A simple rule: never approve a payment you don’t understand. Ask for receipts, double‑check invoices, and keep a paper trail.

3. Act in the Best Interest of the Trust. This is called the “fiduciary duty.” You must put the trust’s interests ahead of your own. If a family member asks for a grant, you need to reject it unless the trust’s rules specifically allow it. Conflict of interest forms are a handy tool – fill them out whenever a potential clash appears.

4. Ensure Legal Compliance. Charitable trusts must follow charity law, tax rules, and any local regulations. In the UK, that means filing annual returns with the Charity Commission and making sure the trust is registered for tax relief if eligible. Missing a filing deadline can lead to penalties, so set calendar reminders.

Practical Tips for New Trustees

Start by asking for a copy of the trust’s latest annual report. It gives you a snapshot of finances, activities, and any ongoing risks. Then, schedule a brief meeting with the existing trustees to go over the most pressing items – upcoming grant applications, a pending property lease, or a new fundraising campaign.

Keep minutes of every meeting. Minutes are more than a formality; they prove you discussed key issues and made decisions transparently. Use a simple template: date, attendees, agenda items, decisions, and action items with responsible persons.

Don’t try to do everything alone. Most trusts have a small team of volunteers or staff. Delegate tasks based on skills – maybe you’re good with numbers, while another trustee excels at community outreach. Clear delegation reduces overload and improves outcomes.

Finally, stay educated. Many charities offer free webinars on governance, tax benefits, and risk management. A quick 30‑minute session can save you hours of confusion later.

Remember, being a trustee isn’t about being a legal expert – it’s about caring for the trust’s mission and making sure resources are used wisely. By following these basic duties, you’ll help the charitable trust thrive and make a real difference in the community.

Gareth Sheffield

Charitable Remainder Trust: How Money Management Works and Who's in Charge

Ever wondered who actually manages the cash in a charitable remainder trust? Take a deep dive into the people, duties, risks, and best practices behind trust money management.