The Charity Commission for England and Wales (the Charity Commission) has published redesigned guidance on paying trustees. The guidance makes it clear that charities should not pay trustees or connected persons unless doing so is clearly in the charity''s best interests.
The relevant guidance, CC11, has always stated that charities should pay trustees only for direct reimbursement of their expenses. The rewritten version now adds that, before paying them for anything else, the charity should ''carefully consider'' all other options first and ensure that the resulting conflict of interest is properly managed.
Additionally, it says, a charity must ensure its governing document gives it legal authority to pay trustees. It warns charities of the risk that a paid trustee may become overly influential, which can make it difficult for them to comply with their legal duties, especially if the trustee is the charity''s founder, a long-serving trustee or connected to other board members. Moreover, paying a trustee could attract criticism either from inside or outside of the charity, which could affect the organisation and its funding if it becomes public. Charities should keep a full record of why they made the decision to pay a trustee, says the guidance.
The revised guidance has now been broken down into various payment scenarios. These include supplying goods or services to the charity, loss of earnings and being employed, to help trustees think through the risks and determine if they have powers they can use or if they need authority from the Charity Commission.
Reimbursement of trustee expenses has been split off as a distinct category not classed as payment. Travel and accommodation costs are a common reason for claiming expenses, but the guidance adds that they may also include costs for childcare or adjustments enabling those with disabilities to conduct their role.
''Some charities will face circumstances where they consider whether to pay one or more trustee'', said the Charity Commission. ''It is vital that they get these decisions right and comply with the law on paying trustees or people or organisations connected to them.''
Sources:【2025/04/25 Charity Commission】
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