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Being a trustee is highly rewarding, yet it comes with risks and responsibilities. Here’s why trustees deserve to be celebrated for all they contribute to the sector and society
There are over 1,000,000 trustees voluntarily serving on the boards of over 196,000 charities in the UK. Despite such a high number of serving trustees, recent research by nfpResearch found that only 13% of 1,000 people surveyed said that they definitely knew what a trustee was. Fewer than one in five said they know someone who is a trustee and just 1% of those surveyed said they were a trustee themselves.
It’s not just the public that has a low understanding of the role of trustees. Even within charities themselves, trustees can have low visibility, and staff may be uncertain as to what it is that trustees bring to the charity.
But trustees make a huge contribution, not just to their charity but to society as a whole. As David Holdsworth, Charity Commission Chief Executive, told attendees at a Trustee’s Week event in 2024, “Trustees are a driving force in charities whose work is often unseen, taking place behind-the-scenes of charities’ front-line work.”
Without trustees, charities simply wouldn’t exist. That’s why we want to recognise and celebrate their service to the sector.
Trustees are volunteers who are legally responsible for ensuring that their charity is run responsibly, effectively, and in line with its charitable purpose.
But good governance is not simply about being compliant and operating within the law. It’s about leading and stewarding a charity to fulfil its mission and to make a meaningful difference.
Currently in the UK, trustees are volunteers and are not paid for their time. They may claim certain expenses, such as travel to board meetings or strategy away days, but they are not paid to sit on the board.
There is an argument that by not paying trustees it excludes people who would make excellent trustees, but who need to be compensated for their time, skills, and expertise. In fact, the nfpResearch report showed that 35% of those surveyed felt it was acceptable for trustees to be paid for their skills, 28% thought they should be compensated for lost income as a result of being a trustee, and only 13% said that trustees should not be paid under any circumstances.
With ever-increasing demands on our time, the contribution that trustees make — particularly trustees of micro and small charities who are much more “hands on” than trustees in mid-to large charities — should be acknowledged, respected, and celebrated.
Typically, a charity’s board should be made up of people with diverse skills, such as communications skills, finance expertise, HR experience, business development skills and more. That’s why adverts for a trustee role usually specify certain skills that the charity needs — either because a trustee with those skills is stepping down and they need to replace them, or they have identified gaps on the board through a skills gap audit.
Different skills on the board not only helps to bring different perspectives but it also ensures that the charity is managing its resources responsibly, acting with reasonable care and skill, and is accountable.
Skills and expertise take years to develop and have a monetary value. The willingness of trustees to readily and freely share their skills by sitting on charity boards is an asset to the sector. In some charities, trustees will buddy up with senior leaders, help mentor them, and pass on their knowledge and expertise. This is invaluable, particularly when budgets for training are tight or non-existent.
Being a trustee comes with a certain level of responsibility and risk. First and foremost, trustees have legal duties, which are set out under the Charities Act 2011.
Together as a board, trustees have overall responsibility for the charity but pass the day-to-day running of the charity to staff and/or volunteers. Whilst they are usually not involved with the day-to-day running of the charity, it is the board’s responsibility to ensure that the charity is running effectively and compliantly.
Poor governance can lead to financial mismanagement, reputational damage (for both the charity concerned and even the wider sector), and potential regulatory intervention from the Charity Commission.
This is why it’s important for trustees to agree on the level of risk they are willing to take together as a board. For example, how much would they be willing to invest in a refreshed brand or a new revenue stream? Trustees who assess risks and plan for how to mitigate them should be celebrated for their willingness to be open to change and innovation.
Follow-up questions for CAI
How can charities recognise and celebrate trustees' contributions?How can charities understand the reality of their charity's operations?How can trustees set an appropriate risk appetite?How can charities increase trustee diversity and relevant board skills?What does it mean to be effective as a trustee?Our courses aim, in just three hours, to enhance soft skills and hard skills, boost your knowledge of finance and artificial intelligence, and supercharge your digital capabilities. Check out some of the incredible options by clicking here.