Charity governance

How a charity is run, and the duties trustees carry personally.

What it means

Charities are governed by trustees, who must act in the charity's best interests, manage resources responsibly, act with reasonable care and skill, and comply with the governing document and the law.

Why it matters

Trustees are volunteers with real duties. They can be personally liable for breaches of trust, though incorporation as a CIO or a company limited by guarantee limits most exposure.

What it looks like in practice

Registration with the Charity Commission is required above an income threshold. Annual returns and accounts are filed and published, with the reporting requirements scaling with income.\n\nSerious incidents must be reported to the Commission.

What to watch out for

Trustee benefit. Paying a trustee, or a business they own, requires express authority and is a common cause of regulatory concern.\n\nAnd trading: substantial non-primary-purpose trading usually needs a trading subsidiary.

Where to get proper advice

The Charity Commission's guidance, free and extensive. A charity solicitor for structure and trading questions.