The Charity Trustee: Balancing responsibilities with reward.

Following its inception in March 2009, the Charity Commission for Northern Ireland (“the Commission”) has overseen the registration, regulation and governance of charitable entities in this jurisdiction.

Given the requirement for institutions with exclusively charitable purposes to undertake formal registration with the Commission, the past 15 years has witnessed a landslide of such applications, with no sign that this will abate any time soon. As of April 2024, there were 7,205 formally registered charitable organisations, with the Commission estimating that there may be as many as 9,000 other organisations with a charitable outreach (including churches, clubs and drop-in societies) operating on a non-registered basis.

Just as the operating practices of a Charity will need to change once registration has been completed, so the role of Charity Trustee will change, owing to the requirements of ensuring compliance with relevant regulations. Whilst many will still be keen to act as Trustee to further a chosen charitable cause or philanthropic aim, it is important that such persons have a proper understanding of the requirements of the role and responsibility that it entails.

The obligations imposed upon a Charitable Trustee are multi-faceted, and will (to some extent) depend on the nature of the organisation in question. That being said, there are certain key functions that all such Trustees must perform:

• Ensuring compliance. All charitable organisations must comply with relevant Charity legislation; the requirements of the Commission as charity regulator; and also ensure that they are acting within the terms of their Governing Document (be it a Trust Deed, Constitution, Memorandum and Articles of Association, etc.)
• Registration. The Trustees must ensure that the charity is registered with the Commission when called forward to do so, or (for those charities that are already so registered) ensure that they fulfil the annual accounting and reporting requirements that registration with the Commission entails.
• Responsible management of the Charity assets. Trustees must only use charitable funds and assets properly and in continuance of the stated Charitable purposes, avoiding activities that might place the assets or reputation of the Charity at undue risk.
• Reporting. Given the nature of the work undertaken by Charities, and the environment of “good will” in which they frequently operate, Trustees of such organisations (irrespective of their size or income) are held to a high ethical standard, and they are expected to report “serious incidents” to the Commission. A serious incident is an adverse event (whether actual or alleged) which results in, or risks:
  • a significant loss of Charity money or assets;
  • damage to Charity property, or
  • harm to the work of the Charity, its beneficiaries or reputation.

Charities are also subject to stringent rules on safeguarding, and Trustees are responsible for ensuring that their practices remain compliant with these rules;

• Demonstrating Good Governance. Whilst not a legal requirement, Trustees are encouraged to adhere to systems and processes that ensure the overall efficiency and effectiveness of an organisation.

Whilst many will be keen to support noble causes by agreeing to act as a Charity Trustee, it is not a function that should be undertaken lightly. Carson McDowell frequently provide advice and support to clients in the establishment of Trusts and other legal entities for Charitable purposes; the ongoing management and administration of such organisations; and also in providing bespoke, ad-hoc guidance to Trustees on particular points of law or processes.

If you would like to consider any aspect of the creation, constitution or management of a Charitable Trust, please contact Andrew Davison or another member of our Charities team to discuss your enquiry further.

*This information is for guidance purposes only and does not constitute, nor should be regarded, as a substitute for taking legal advice that is tailored to your circumstances.