Tag: trustee

Taking or defending legal action – the general position for charities

Trustees have a general duty to act in the best interests of their charity. They have a duty to protect, and where necessary, to recover, assets belonging to the charity. The decision whether or not to initiate or defend a legal action must only be made in the best interests of the charity and be balanced against the risks and consequences that any legal action could bring.

The commission expects trustees to consider legal action only after they have explored and, where appropriate, ruled out any other ways of resolving the issue in dispute.

Trustees need to bear in mind that taking or defending legal action must be in their charity’s best interests. They must be able to demonstrate that their decisions were made accordingly. However, in some cases the commission’s consent is necessary

The legal structure of the charity means there are differences in how legal action may be taken or defended:

  • Incorporated charitiesIncorporated charities such as charitable companies, corporations or CIOs take or defend legal action in the name of the charity as a legal entity in its own right. If an action is brought by or against an incorporated charity, the incorporated charity will be named as a party to the action in its corporate name. In most situations, if the charity is incorporated, it is the charity itself, rather than the members or the trustees, which is responsible for the charity’s debts or for any other liabilities which might arise.However, if there has been any breach of duty or the decision to bring or defend the legal action has not been taken reasonably, the trustees may be personally liable for any costs arising from the proceedings.
  • Unincorporated charitiesUnincorporated charities such as associations and trusts usually take or defend legal action in the names of their charity trustees. If such a charity has insufficient funds to meet any claim, its trustees may be personally liable irrespective of whether there has been any fault or breach of duty on their part.

Some types of legal action, whatever the legal structure of the charity, need the consent of the commission. These are a specific category of legal action, concerning the constitution or administration of a charity and are called charity proceedings.

You can find further information on charity proceedings and how to apply for the commission’s consent here

Making A Complaint About A Charity

You can complain to the Charity directly, unless you suspect illegal activity, like terrorism or abuse.

!Contact the police on 101 if you suspect illegal activity!

If you are not happy with how the charity deals with your complaint, contact the relevant regulator:

Fundraising complaints

Contact the Fundraising Regulator to complain about:

  • the way you’ve been asked for donations
  • how fundraisers have behaved

You can also complain on behalf of someone else.

Advertising complaints

Contact the Advertising Standards Authority to complain about:

  • an advertising campaign you think is offensive, deceptive or inaccurate
  • the amount of emails or mail you get from a charity

You can change how often you get emails, phone calls, texts or post from a charity using the Fundraising Preference Service.

Other serious complaints

Complain to the Charity Commission if a charity is, for example:

  • not doing what it claims to do
  • losing lots of money
  • harming people
  • being used for personal profit or gain
  • involved in illegal activity

Make a serious complaint about a charity.

If you’re a Trustee or Auditor

You can:

If You’re A Charity Employee Or Volunteer

Read how to report serious wrongdoing at a charity you work for

Trustees Week 2015

Trustees’ Week 2015 is 2–8 November

trusteesweekbloglogo

Trustees are the people in charge of a charity. They play a vital role, volunteering their time and working together to make important decisions about the charity’s work. Trustees’ Week is an annual event to showcase the great work that trustees do and highlight opportunities for people from all walks of life to get involved and make a difference.

For more information, click here

 

Conflict of Interest

ABOUT CONFLICTS OF INTEREST

You have a legal duty to act in your charity’s best interests when making decisions as  a trustee.  If there’s a decision to be made where a trustee has a personal or other interest, this is a conflict of interest and you won’t be able to comply with your duty unless you follow certain steps.

For example, if you’re a trustee, you would have a conflict of interest if the charity is thinking of making a decision that would mean:

  • you could benefit financially or otherwise from your charity, either directly or indirectly through someone you’re connected to
  • your duty to your charity competes with a duty or loyalty you have to another organisation or person

Conflicts of interest are common in charities – having a conflict of interest doesn’t mean you’ve done something wrong. But you need to act to prevent them from interfering with your ability to make a decision only in the best interests of the charity.

Follow a 3 step approach (identify, prevent, record) so that you are able to comply with your duty and avoid:

  • making decisions that could be overturned
  • risking your charity’s reputation
  • having to repay your charity if you make unauthorised payments to trustees

Legal requirement: you MUST declare a conflict of interest immediately you are aware of any possibility that your personal or wider interests could influence your decision-making.

More details can be found here