Role of the Trustee
We refer to the people who govern charities in Ireland as trustees. By law, they are volunteers and are ultimately responsible for all that the charity does.
Trustees take on a leadership role in the organisation, ensuring that the charity remains focused on its long-term vision and has the resources to achieve its goals. The trustees have a responsibility to support and oversee the management, staff and volunteers involved in the charity. They also must ensure that the organisation meets its legal obligations and that its finances are properly managed. Ultimately the trustees need to ensure that the charity operates in a transparent and fair way.
Becoming a charity trustee can seem daunting at first. Below we have set out the main areas of responsibility in straightforward language in order to help you understand your role and responsibilities.
How Can I ensure I’m doing a Good Job as a Charity Trustee?
The Charities Regulator launched a new Charities Governance Code in late 2018. This Code sets out a mandatory standard for governance in Irish charities. The Code identifies 6 principles on which good governance is based. By looking at these principles we can identify some of the key responsibilities for charity trustees.
The six principles are:
- Advancing Charitable Purpose
- Behaving with Integrity
- Leading People
- Exercising Control
- Working Effectively
- Being Accountable & Transparent
What do these principles mean in practice for charity trustees?
Advancing Charitable Purpose
Charity trustees must make sure that their charity is doing what it was set up to do. In order to do this, they need to: be clear about the purpose of their charity and be able to explain it; agree an achievable plan to advance the purpose, make sure that there is enough funding to carry out the plan and monitor the progress of the plan; and make sure that their charity is acting in line with its purpose and is providing public benefit.
Behaving with Integrity
Charity trustees have a responsibility to act with integrity themselves and to foster an ethical culture in their charity. In order to do this, they need to: agree the basic values of the charity so that everyone knows they are expected to behave; decide how they will deal with any conflicts of interests or loyalties; and adopt a code of conduct for trustees.
Leading People
Charity trustees have a responsibility to provide leadership for all volunteers, employees and contractors. In order to do this, they need to: make sure that everyone working for their charity is clear about their role; make sure appropriate arrangements are in place for any staff or volunteers; and agree any operational policies where they are needed.
Exercising Control
Charity trustees have a responsibility make sure their charity is acting legally and meeting its financial and regulatory requirements. In order to do this, they need to: make sure that the legal structure and constitution of their charity is fit for purpose; identify and comply with all the legal and regulatory requirements that apply to their charity; follow the Charities Regulator’s fundraising and financial management guidelines; and identify any risks their charity might face and how to manage them.
Work Effectively
Charity trustees have a responsibility to make sure that they work together effectively as a board. In order to do this, they need to: make sure that trustees with the necessary skills are recruited and trained; hold effective meetings with appropriate notice, informed decision-making and clear minutes; review the way that the board is operating from time to time; and resolve any problems that arise on the board as soon as possible.
Being Accountable and Transparent
Charity trustees have a responsibility to make sure their charity is accountable to its stakeholders and transparent about its activities. In order to do this, they need to: communicate with all those who have an interest in their charity’s work; respond to questions and feedback from stakeholders; and engage with those who benefit from their work.
Legal Duties of Charity Trustees
The Charities Regulator has produced a very useful document that sets out the legal duties of charity trustees. It takes you through twelve key legal duties that are specific to charity trustees. You can read and download the document here: Guidance for Charity Trustees.
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