Trustees Week: Make your charity board effective

There are nearly one million trustees in the UK. This large group of people are accountable for everything a charity does, from setting the strategy and direction to making sure the right leadership is in place.

 

It’s vital to put processes in place to help trustees do their jobs effectively. This will help organisations to thrive.

 

The chief executive, senior staff (if your charity has staff), and the chair of trustees need to work closely together to put these processes in place.

 

The Charities Aid Foundation says charities must prioritise good governance. “It’s critical to success for your organisation and for the support of your beneficiaries.”

 

Here’s how to make sure your trustee board is effective:

 

 

Recruit the right people

 

Make sure you appoint people who are interested in your charity’s work  and willing to give their time. Being a trustee needs commitment and passion.

 

The Charity Governance Code says it’s important to put a rigorous approach in place to recruit trustees. It recommends carrying out regular skills audits to make sure you’re recruiting people with the skills that you need. For example, someone with finance experience to be the treasurer.

 

A person’s knowledge and understanding is important but you should also consider personality. For example, you don’t want a board composition where one person is too dominant or a group of trustees who don’t feel confident making decisions. By recruiting the right people, the board will work well together and make decisions based on the charity’s best interest.

 

 

Make sure trustees understand their roles

 

New trustees need to go through an induction process to help them get to grips with their roles and responsibilities. You also need to help them to understand the work of the charity and what it does. Set up meetings for them with staff and other trustees.

 

You should also provide regular training to existing trustees to help them develop in their roles and stay up to date with the requirements of being a trustee.

 

The Charity Commission has some five-minute guides for charity trustees on its website, covering topics such as making decisions and managing finances. The NCVO also offers training for trustees and the Charity Excellence Framework has a list of free training for trustees in the UK.

 

 

Help trustees to understand their legal duties

 

Charity trustees have a legal responsibility for the charity they work with and must carry out specific duties. These are set out by the Charity Commission in its guidance on the essential trustee and include: giving the organisation strategic direction and managing finances.

 

The NCVO has a useful chart to help charities support their boards to understand their roles and responsibilities. It also has some information about the role of the chair, the vice-chair and the treasurer.

 

In summary, the NCVO says an effective board of trustees will:

• Set a strategy for a charity and be clear about what an organisation aims to achieve and how
• Use a charity’s money and resources to achieve the organisation’s desired outcomes
• Make sure a charity follows the law, its governing document and policies
• Deal quickly with any issues that arise
• Report to the regulators
• Consider potential risks and monitor progress to keep a charity on track
• Learn from difficulties and make changes

 

 

Make sure your board is diverse

 

A blog on the ACEVO website says that board diversity is vital as people’s different backgrounds and experiences will add different strengths and perspectives to discussions.

 

It will also make sure the board is reflective of the communities for which it works. During board meetings, give space for everyone to share their views.

 

GOV.UK says to promote trustee vacancies widely so you can reach a wider range of potential people. For example, advertising on trustee recruitment websites and approaching local universities or colleges.

 

 

Evaluate board performance

 

The board should evaluate its own performance on a regular basis. This will help trustees and staff to monitor the board’s effectiveness, as well as increase transparency and trust within the board and the charity. It will also help to check that the right people are in the trustee positions.

 

ACEVO says that common factors to evaluate include: diversity, experience and teamwork.

 

 

Plan board meetings

 

Plan your meetings carefully, so you have time for constructive discussions and can work together productively. Most boards meet around four to six times a year, which means there is limited time to get everyone together to agree key actions. To make sure your meetings are productive, put together agendas with key topics for discussion and design board papers that can be digested quickly, using graphs, charts and traffic light systems.

 

 

To find out more about the role of a trustee and how to make a board effective, have a look at the following:

• Charity Governance Code
• Directory of Social Change
• Getting on Board
• GOV.UK
• NCVO
• Trustees’ Week