A charitable trust is a legal instrument where the donor signs over assets to a third party, known as a trustee, for the benefit of a charity and anyone else the donor specifies. This provides tax benefits for the donor, and also allows the donor to have control over how assets are distributed.
- Charity trustees are the people who ultimately exercise control over, and are legally responsible for, the charity. If the charity is a company, these people may also be known as directors or board members. In an unincorporated association – an association that has a legal form with a governing document – they may be known as committee members.
Charity trustees are the people who ultimately exercise control over, and are legally responsible for, the charity. If the charity is a company, these people may also be known as directors or board members.
- 1 How many trustees should a charity have?
- 2 Who can become a trustee of a charity?
- 3 Where can I find trustees of a charity?
- 4 Can family members be trustees of a charity?
- 5 Do trustees of a charity get paid?
- 6 Can a charity have 2 bank accounts?
- 7 What is the role of a trustee in a charity?
- 8 Are trustees financially liable?
- 9 What are the legal responsibilities of a charity trustee?
- 10 What disqualifies you from being a charity trustee?
- 11 Do you have to have trustees for a charity?
- 12 Can a charity pay its directors?
- 13 Can a husband and wife be trustees?
- 14 Can a charity employee be a trustee?
- 15 How long should charity trustees serve?
How many trustees should a charity have?
Aim for a minimum of three unconnected trustees with a good range of skills. Each trustee must read and sign a trustee declaration form to confirm they can act as a trustee.
Who can become a trustee of a charity?
Becoming a trustee You must be over 18 to be a trustee (or 16 if the charity is set up as a company or Charitable Incorporated Organisation). Charities need committed and enthusiastic people from a wide range of backgrounds. It depends on the charity whether you need any particular skills or experience.
Where can I find trustees of a charity?
You can find the names of the trustees for any charity using its entry on the Charity Commission register.
Can family members be trustees of a charity?
The Charities Act 2011 sets out the duties for trustees of CIOs. Connected person: in broad terms this means family, relatives or business partners of a trustee, as well as businesses in which a trustee has an interest through ownership or influence.
Do trustees of a charity get paid?
Most trustees are unpaid, but all trustees can claim reasonable out-of-pocket expenses. Charities can pay some of their trustees (or people and businesses connected to trustees) for services. But a charity trustee may only be paid for serving as a trustee where it: is clearly in the interests of the charity, and.
Can a charity have 2 bank accounts?
3.3 Can charities have more than one bank account? Yes. It is up to trustees to decide which banks they hold accounts with, and how many accounts they have, provided that they are acting in the best interests of the charity.
What is the role of a trustee in a charity?
A trustee’s role in a charity is to be the ‘guardians of purpose’, making sure that all decisions put the needs of the beneficiaries first. They safeguard the charity’s assets – both physical assets, including property, and intangible ones, such as its reputation. Most trustee boards meet four to eight times a year.
Are trustees financially liable?
Trustees of incorporated charities are treated in a similar way to company directors and are generally not liable for the charity’s debts. By contrast, trustees of unincorporated charities are at much greater risk of personal liability.
What are the legal responsibilities of a charity trustee?
Legal duties of charity trustees – summary In general terms, the duty of a charity trustee is to promote the interests of the charity and to ensure that its assets are applied for the charitable purposes authorised by its governing document and for no other purpose.
What disqualifies you from being a charity trustee?
Individuals are already automatically disqualified as charity trustees if they have unspent convictions for offences of dishonesty or deception (the same goes for attempting, aiding or abetting these offences). A spent conviction doesn’t disqualify anyone – the disqualification only applies to unspent convictions.
Do you have to have trustees for a charity?
You need enough trustees to govern the charity effectively. It’s also important to keep your board small enough to arrange meetings easily and allow effective discussion and decision making.
Can a charity pay its directors?
A charity can, however, pay its directors/trustees if payment to the directors/trustees is permitted by the charity’s constitution, subject to the overriding requirement that the payment is considered by the directors/trustees of the charity to be in the best interests of the charity.
Can a husband and wife be trustees?
Often spouses are told that they cannot be a trustee or should only become a trustee upon the death of the other spouse. Trustees are the decision-makers in a trust. The principle stems from the fact that trustees of a discretionary trust are co-owners of a trust property, albeit in a non-beneficial sense.
Can a charity employee be a trustee?
A charity employee can be appointed to the charity’s trustee board without express authority. This is because the person’s employment precedes the trusteeship.
How long should charity trustees serve?
Using sub-committees, assemblies, representative groups or advisory councils can help here, but in the end we should ensure that no trustee remains on a board for longer than they are effective. Generally two terms of three years is good practice.