Policies & procedures
MyWorld Creative Projects policies and procedures
July 2024
These policies and procedures are required by the Charity Commission of England and Wales. Where the name MYWORLD is used, it represents the official name of the charity as well as projects such as CAFÉ ART and MYLONDON
1. Internal charity financial controls policy and procedures
Internal Financial Control is the process which encompasses systems, policies and procedures that protect the assets of MYWORLD, create reliable financial reporting, promote compliance with laws and regulations and achieve effective and efficient operations.
2. Safeguarding policy and procedures
Charity trustee safeguarding responsibilities
According to UK guidelines homeless adults are not automatically defined as “vulnerable”. This allows us to avoid having to do a DSB check on trustees and volunteers. We do not meet with clients individually - only in groups, such as the weekly photo walks or when visiting art groups run by other homelessness-sector charities.
The Charity Commission views vulnerable adult and child safeguarding as a key trustee responsibility. Despite homeless people not officially being classed as vulnerable, which allowed us to not have annual DSB checks on trustees, MYWORLD has the following safeguarding policy and procedure.
Here is the Charity Commission infographic on 10 safeguarding duties for charity trustees. Charity Commission guidance requires that it includes how you will: protect people from harm; make sure people can raise safeguarding concerns; handle allegations or incidents; respond, including reporting to the relevant authorities. This should ideally be reviewed and approved by the Board annually.
Policy purpose
MYWORLD’s charitable activities include working with people affected by homelessness. While we normally only work with adults, and those who are categorised as being homeless are not all classed as vulnerable, we should have policies in place just in case and thus the purpose of this safeguarding policy is to protect children and vulnerable adults and provide stakeholders and the public with the overarching principles that guide our approach in doing so.
Safeguarding principles
We believe that nobody who is involved in our work should ever experience abuse, harm, neglect or exploitation. We all have a responsibility to promote the welfare of all of our beneficiaries, staff and volunteers, to keep them safe and to work in a way that protects them.
We all have a collective responsibility for creating a culture in which our people not only feel safe, but also able to speak up, if they have any concerns.
Safeguarding policy applicability
This safeguarding policy applies to anyone working on our behalf, including our charity trustees and other volunteers.
Partner organisations will be required to have their own safeguarding procedures that must, as a minimum, meet the standards outlined below, and include any additional legal or regulatory requirements specific to their work. These may, but are not limited to:
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other UK regulators, if applicable, such as Ofsted or CQC
There may be other requirements or frameworks for those working overseas (Charity Commission guidance - working overseas). You can also read the International Child Safeguarding Standards.
Keeping children safe online assessment tool.
Safeguarding should be appropriately reflected in other relevant policies and procedures.
Types of abuse
Abuse can take many forms, such as physical, psychological or emotional, financial, sexual or institutional abuse, including neglect and exploitation.
Reporting safeguarding concerns
If a crime is in progress, or an individual in immediate danger, call the police, as you would in any other circumstances.
If you are a beneficiary, or member of the public, make your concerns known to a member of our team, who will alert a senior member of the charity.
For members of the charity, make your concerns known to your supervisor. If you feel unable to do so, speak to a trustee.
The trustees are mindful of their reporting obligations to the Charity Commission in respect of Serious Incident Reporting and, if applicable, other regulator. They are aware of the Government guidance on handling safeguarding allegations.
Charity trustee safeguarding responsibilities
Responsibilities should be made clear, and individuals provided with any necessary training and resources to enable them to carry out their role. It should be reflected in Committee job descriptions, annual plan and appraisal objectives, reporting to the trustee Board and other procedures, as necessary. This safeguarding policy will be reviewed and approved by the Board annually.
Trustees should be aware of and comply with the Charity Commission guidance on safeguarding and protecting people and also the 10 actions trustee boards need to take to ensure good safeguarding governance.
A lead trustee/committee with be given responsibility for the oversight of all aspects of safety, including whistleblowing and Health and Safety. This will include:
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creating a culture of respect, in which everyone feels safe and able to speak up.
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an annual review of safety, with recommendations to the Board
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receiving regular reports, to ensure this and related policies are being applied consistently
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providing oversight of any lapses in safeguarding and ensuring that any issues are properly investigated and dealt with quickly, fairly and sensitively, and any reporting to the Police/statutory authorities is carried out
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leading the organisation in way that makes everyone feels safe and able to speak up
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ensuring safeguarding risk assessments are carried out and appropriate action taken to minimise these risks, as part of our risk management processes
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ensuring that all relevant checks are carried out in recruiting staff and volunteers
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planning programmes/activities to consider potential safeguarding risks, to ensure these are adequately mitigated
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ensuring that all appointments that require DBS clearance and safeguarding training are identified, including the level of DBS and any training required
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ensuring that a central register is maintained and subject to regular monitoring to ensure that DBS clearances and training are kept up to date
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ensuring that safeguarding requirements (e.g. DBS) and responsibilities are reflected in job descriptions, appraisal objectives and personal development plans, as appropriate
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listening and engaging, beneficiaries, staff, volunteers and others and involving them as appropriate.
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responding to any concerns sensitively and acting quickly to address these
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ensuring that personal data is stored and managed in a safe way that is compliant with data protection regulations, including valid consent to use any imagery or video
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making staff, volunteers and others aware of our safeguarding procedures and their specific safeguarding responsibilities on induction, with regular updates/reminders, as necessary and the signs of potential abuse and how to report these.
Everyone needs to be aware of our procedures, undertake any necessary training, be aware of the risks and signs of potential abuse and, if you have concerns, to report these immediately (see above).
Safeguarding and fundraising
We will ensure that:
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we comply with the Code of Fundraising Practice, including fundraising that involves children.
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staff and volunteers are made aware of the Institute of Fundraising guidance on keeping fundraising safe and the NCVO Guidance on vulnerable people and fundraising.
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our fundraising material is accessible, clear and ethical, including not placing any undue pressure on individuals to donate.
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we do not either solicit nor accept donations from anyone whom we know, or think may not be competent to make their own decisions.
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we are sensitive to any need that a donor may have.
Charity Commission - online safeguarding procedures
We will identify and manage online risks by ensuring:
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volunteers, staff and trustees understand how to keep themselves safe online. We should use high privacy settings and password access to meetings to support this
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the online services you provide are suitable for your users. For example, use age restrictions and offer password protection to help keep people safe
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the services we use and/or provide are safe and in line with our code of conduct.
We already protect people’s personal data and follow GDPR legislation. We have permission to display any images on our website or social media accounts, including consent from an individual, parent, etc. We clearly explain how users can report online concerns. Concerns may be reported using this policy, or direct to a social media provider using their reporting process. If you are unsure, you can contact one of these organisations, who will help you.
3. Financial reserves policy and procedures
There is no single level of reserves, or even a range of reserves, that is right for all charities. Any target set by trustees for the level of reserves to be held should reflect the particular circumstances of the individual charity. To do this, trustees need to know why the charity should hold reserves and, having identified those needs, the trustees should consider how much should be held to meet them. Our reserves policy sets out how:
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much MYWORLD needs to hold in reserve and why and when your charity’s reserves can be spent
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often the reserves policy will be reviewed.
How are Charity Reserves calculated? There is no specific calculation to use in calculating the free reserves MYWORLD might need. We need to consider how much uncertainty is there in our income forecast. This CEF resource shows four techniques to do that well. MYWORLD regularly considers:
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how secure are our income streams
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what is our monthly expenditure
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how able are we to reduce service delivery on a temporary basis in an emergency
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how much would this reduce our costs
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what regular expenditure might be reduced temporarily in an emergency
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how much might this reduce costs - training, maintenance, parking planned new projects/work.
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how much would it cost us to close down? (redundancy, outstanding debtors etc.)
4. Complaints policy and procedures
People should complain to MYWORLD in the first instance, unless they suspect illegal activity, in which case they may wish to consider calling the Police (Tel:101). Charities exist to help people and the vast majority will respond positively and do their best to resolve your issue.
For more serious issues, people should use our complaints procedure, which should be available on request. Staff members you should use the grievance procedure, or in certain circumstances for specific serious issues, the whistleblowing procedure (Public Disclosure Act). If you need advice, you could contact the Acas helpline.
How to complain about MYWORLD to the Commission
People can use the Charity Commission complaints procedure to report or complain about MYWORLD if it is, for example:
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not doing what it claims to do
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losing lots of money
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harming people
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being used for personal profit or gain
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involved in illegal activity.
Charity Commission complaints procedures include:
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a serious incident report, if you are a trustee
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reporting serious wrongdoing, if you're a charity worker or volunteer
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reporting a concern, if you're an auditor or independent examiner, or
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reporting a serious concern, for anyone else.
5. Serious incident reporting policy and procedures
This policy covers serious incident reporting to the Charity Commission as it relates to MYWORLD and that closely follows the commission’s guidance.
Scope
This policy covers all activities of the charity and its operations. It does not cover or replace the charity's obligations to report incidents to statutory authorities such as the police, health and safety executive or licensing authority that MYWORLD may need to do from time to time in the ordinary operation of its business.
However, incidents that are reported to the statutory authorities can become relevant to this policy, that is become in scope, for example if the charity is subjected to an investigation by a statutory authority or if it deems itself to be at fault and there is potential reputational damage to the charity as a result.
Background
The commission states that it is vital that charities, whether they work domestically or around the world, report serious incidents to the regulator. The commission also states that data on serious incident reporting allows it to better understand risks facing the sector and take appropriate action.
However, the commission recognises the challenging nature of the work undertaken and the difficult context faced by many charities. It understands that serious incidents will happen, but it is the commission's role to ensure that trustees comply with their legal duties and that the charity manages the incident responsibly. The commission will be looking for assurance that the charity has taken steps to limit the immediate impact of any serious incidents that may occur and, where possible, prevent it from happening again.
The commission acknowledges that many problems can be resolved by trustees themselves. However, sometimes it needs to use its powers to protect a charity. Reporting also means the commission can identify whether other charities might be affected and can give better advice to all charities to help them protect themselves.
What is a serious incident?
The commission defines significant as ‘significant in the context of your charity, taking account of its staff, operations, finances and / or reputation'; and defines a serious incident as an adverse event, whether actual or alleged, which results in or risks significant:
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Harm to people who encounter our charity through our work and our trading subsidiary.
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Loss of our charity’s money or assets.
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Damage to our charity’s property.
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Harm to our charity’s work or reputation.
An act of discrimination against any person with a protected characteristic listed in the Equality Act 2010 will also be treated as a serious incident.
The main categories of reportable incidents set out by the commission are:
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protecting people and safeguarding incidents – incidents that have resulted in or risk significant harm to beneficiaries and other people who meet the charity through its work.
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financial crimes – fraud, theft, cyber-crime and money laundering.
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large donations from an unknown or unverifiable source, or suspicious financial activity using the charity’s funds.
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other significant financial loss.
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links to terrorism or extremism, including ‘proscribed’ (or banned) organisations, individuals subject to an asset freeze or kidnapping of staff.
Other significant incidents, such as – insolvency, forced withdrawal of banking services without an alternative, significant data breaches / losses or incidents involving partners that materially affect the charity.
Policy
It is MYWORLD’s policy to report all ‘serious incidents’ to the commission within 48 hours of the chair’s decision, or if the matter has been referred more widely to some or all the charity’s trustees the decision of those trustees, to report a serious incident, providing an appropriate level of information and to respond to any resulting requests for information within five working days.
What we will report
The nature of the charity’s assets and activities mean that it deals with incidents on a frequent basis as part of its operations.
The incidents that we will report and the incidents that it is not necessary to report are detailed in appendix 1, available on request, and is based on Commission guidance. This is not a definitive list of reportable incidents but indicates the type of incidents categorised as ‘serious’ and reportable and will act as a guide as to what should and should not be reported.
Who is responsible for reporting?
The responsibility for reporting serious incidents rests with the charity's trustees. All trustees bear ultimate responsibility for ensuring their charity makes a report and does so in a timely manner.
All incidents, whether deemed ‘serious’ or not should be reported to MYWORLD’s CEO immediately, either in writing or if verbally reported, confirmed in writing immediately after notification.
The CEO will refer any potentially reportable incident to the chair immediately either by telephone or email. The board of trustees (or sub-committee of) will be consulted within 48 hours as to whether the incident constitutes a serious incident and requires reporting to the Charity Commission.
The report will then be made to the commission within 48 hours of the decision to report a serious incident.
All discussions and decisions taken will be formally recorded and then minuted at the next available board meeting along with any outcomes and further action taken.
Actions we will take in response to a serious incident
If there is a serious incident the trustees, together with the CEO will:
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as soon as reasonably practicable prevent or minimise any further harm, loss or damage
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report it to the commission as a serious incident
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report it to the police (and / or other relevant agencies) if we suspect a crime has been committed, and to any other regulators the charity is accountable to and other agencies such as the local authority designated officer (LADO) for safeguarding
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put in place a communication plan for staff, volunteers, the public, the media and other stakeholders, such as founders
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review what happened and prevent it from happening again – this may include reviewing internal controls and procedures, internal or external investigation and / or seeking appropriate help from professional advisers.
How we will report
The trustee board delegates formal responsibility for reporting those incidents deemed to be serious incidents to the CEO who will report them to the Charity Commission using its online reporting form.
If the information provided (or which MYWORLD wish to provide to the commission) is particularly sensitive or confidential or if a particular exemption applies, we will inform the commission and explain our reasoning.
The charity is required as part of its annual return, to sign a declaration confirming there were no serious incidents during the financial year that should have been reported to the commission. If incidents did occur, but were not reported at the time, we will submit these before we file our charity's annual return, so that we can make the declaration and meet our legal reporting requirements.
6. Internal risk management policy and procedures
Internal Risk Control is what a manager and organisation put in place to minimise risks coming from inside the organisation. These controls fall into four broad categories:
Monitoring: These are controls put in place to keep an eye on operations and identify problems before they escalate.
Control environment: This means organising the workplace to minimise risk. This can be anything from putting up a banner to up firewalls to protect against viruses on laptops.
Information and communication: This is the establishment of regular reports and communication channels between Paul Ryan, contractors/volunteers, trustees and each other. Sometimes a problem can seem “under control”, but it could be on the verge of spiralling into disaster – good communication and reporting helps prevent this from happening.
Risk valuation: This is the method that an organisation uses to put a monetary value on how much risk each aspect of operations is adding to the whole.
Risk valuation is the trickiest, but also the most important. MYWORLD has finite resources that it needs to spread to minimise risk, and this valuation process helps guide those efforts. At the same time, every time a company adds more monitoring, controls, and reporting duties to its staff, the staff spend more time focusing on risk management, and less on what generates revenue. Every time a new internal control is imposed, it must be balanced with the cost it imposes on the team it is trying to protect.
Internal risk control is done at every level of management. The lowest-level managers are trying to minimise the risks inherent to their team in meeting their objectives, while higher levels of management examine risks running throughout the organisation. Effective controls are also bottom-up as well as top-down, by adding direct avenues of communication from rank-and-file workers to report any time they believe internal controls are being disregarded, or if new controls may be necessary to address new risks.
Contrast with external risk control
External risk control is more free form, since the risks from outside an organization cannot be quantified quite as easily. This usually starts with a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats), and focuses on addressing the Threats identified. External Risk Control is usually addressed by the higher-level managers, who then issue directives to the lower levels of management to address these risks.
While internal controls are put in place to ensure MYWORLD continues to operate smoothly, external risk controls try to address threats to the business itself. For example, airlines are always at risk for the price of oil going up, which causes a huge spike in their operating expenses. One major form of external risk control they exercise is purchasing oil futures, which locks in a set price for several months in the future, removing some uncertainty. External risk controls try to look at everything from input prices changing to new laws and regulations being passed, and everything in between.
Ways to assess risk
Risk evaluation has no settled guidelines on how it ought to be done. However, there are a couple of general rules that are followed. There are five stages to risk evaluation that can be taken to guarantee that risk appraisal is completed accurately.
These five stages are:
Stage 1: Detecting the hazards
Before a risk can be assessed, the first step is identifying what exactly that risk is. The goal of Step 1 is to have a clear and concise definition of what exactly the potential problems are and what kinds of damage might be caused. For example, dangerous machines in a workplace have a defined risk of harming workers, which both loses productivity and results in lawsuits.
Many hazards are initially very vague, but effective controls cannot be put in place until the managers identify what exactly they are trying to control. Hazards can be recognised by utilising various diverse procedures, for example, strolling around the work environment or asking the workers. A few hazards might be anything but difficult to distinguish and others may require some help from different experts outside of one’s business.
Stage 2: Identifying the stakeholders
This stage builds on the hazards and risks found in stage one. A problem in the workplace has a few different levels of stakeholders. For example, with dangerous machinery, the workers at risk of being injured are obvious stakeholders. Additional stakeholders would be the other units of that business who will be put behind schedule if there is an incident earlier in the production chain. It will also impact the families of those who might be injured, as well as the stockholders of the company who may pull their investment considering the bad press following an injury.
Stage 3: Evaluating the dangers and choosing control measures
Evaluating the dangers means trying to assign some probability of how likely the hazard is to occur. No hazard can be eliminated – only minimised. This means businesses first identify how likely a problem will arise from that hazard, and how much potential control measures will lower that possibility.
Potential controls are evaluated by balancing their cost to implement (both in dollar value and how much time/effort of the staff it will take to enforce the control) with how much risk is reduced. Once several alternatives are compared, new controls can be introduced.
Stage 4: Record the findings
Effective controls are implemented on a trial basis. This means the team has a training session to outline what the hazards are, and the new controls being implemented to address them. While the trial progresses, the entire team (from rank-and-file workers through the management involved) record how the implementation impacts their work, both in terms of addressing the risks the controls are addressing and the realized cost of implementing them.
Step 5: Review the assessment and refresh
Risk controls need to be continually reviewed for effectiveness and refreshed, with corresponding communication to all the stakeholders involved. This is usually done by the management team, with a specific “Assessor” tasked with conducting a review or audit of the control and how it evolves over time. Changes need to be implemented to every type of control over time to address new risks and changing business environments.
Importance of auditing risk control
Audits are larger reviews of the internal risk controls that a company has implemented. Audits are separate from the normal risk assessment procedures but do follow a similar road map for how they are conducted.
Regular audits of internal risk controls are essential to keep MYWORLD running smoothly. Their two major benefits are making sure that the internal controls are being implemented as designed, while also getting a “bird’s eye view” of the overall controls in an organization. This bird’s eye view can help identify redundancies with the internal controls, and streamline the processes, making them cheaper, easier, and more effective.
Risk identification and assessment
This is the same as Step 1 through Step 3 in the normal Risk Assessment, but looks at the business operations, rather than individual business units. The purpose is to identify what risks are present, and what controls already exist to address those risks. If adequate controls are not present, the auditing team will make recommendations to the relevant stakeholders to fix it.
Enhanced process efficiency and effectiveness
This is the process of trying to harmonise the internal risk controls already implemented across MYWORLD. The main goal of these exercises is to try to make it easier for business units to maintain effective controls. This usually means merging SOPs from different business units, enhancing communication channels, and getting more input from managers about what types of controls are eating the most of their time. Effective internal control audits mean workers need to spend less effort on compliance, and more effort building value for the business, without sacrificing protection against risk.
7. Trustee expenses policy and procedures
7.1. Key points about expenses and trustee payments
This section summarises the main points for charity trustees to consider. They are based on a mixture of case law, charity law, and good practice, and are covered in more detail in the guidance.
The concept of unpaid trusteeship has been one of the defining characteristics of the charitable sector, contributing greatly to public confidence in charities.
The basic principle is that trustees must not put themselves in a position where their personal interests conflict with their duty to act in the interests of the charity unless authorised to do so.
However, trustees are entitled to have their expenses met from the funds of the charity. Expenses can include a wide range of costs including, for example, travel and other costs of attending meetings, specific telephone and broadband charges, travelling on trustee business, and providing childcare or care of other dependants while attending to trustee business.
Charities have a statutory power to pay a trustee, or a connected person, for the supply of goods or services in certain circumstances under section 185 of the Charity Act 2011 (as amended). This power cannot be used if the governing document prohibits this type of payment.
A charity trustee may only be paid for serving as a trustee where this is clearly in the interests of the charity and provides a significant and clear advantage over all other options. There is no general power in law for this type of payment - a charity would need a specific authority which may be found in its governing document, or be provided by the Charity Commission, or, more rarely, the courts.
Where a charity proposes to employ a trustee in some other role, or where a charity wishes to compensate a trustee for loss of earnings to enable them to attend meetings during working hours, it must firstly ensure that it has the necessary authority in its governing document. If it does not, the charity will need to approach the Commission or the courts.
In any case where a charity wishes to make a payment, but has no clear power to do so, the trustee board must apply to the Commission for authority before the payment is made.
Properly assessing any potential risks and managing conflicts of interest are important factors when a charity is proposing to pay a trustee. Trustee boards should be open and transparent about their decision to pay and be prepared to justify it if publicly challenged. For all charities, disclosing such payments in the charity accounts in accordance with Charity SORP guidelines is not only a legal requirement for companies and larger charities but will help charities of all sizes dispel any perception that payments might have been made in secret.
Charities should have clearly defined procedures for identifying and managing conflicts of interest. Ideally, these procedures should be set out in the charity’s governing document.
As good practice, a trustee board should regularly review the performance of each trustee (including the chair). This is particularly important where a trustee is receiving a payment from the charity.
Ensuring that the opportunity to be a trustee is open to all is one of the keys to achieving strong, effective boards of trustees. Clear policies on payment of expenses can help with this. Other forms of payment, including compensating individuals for loss of earnings, can also be used as a tool to attract promising candidates who might otherwise be unable to afford to serve. If a trustee board is considering whether to make a payment to a trustee (as opposed to reimbursement of expenses) there are six key factors to consider:
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who will receive the payment - will it be a trustee, or a person or business connected with a trustee?
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what is the payment expected to cover?
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is the payment clearly in the best interests of the charity?
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is there a legal authority for it?
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what conditions must be met if the payment is to be made?
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how will any conflict of interest be managed?
The guidance on trustee expenses and payments applies equally to charity trustees and persons or businesses connected with them.
7.2. Introduction and meaning of terms
The concept of unpaid trusteeship has been one of the defining characteristics of the charitable sector, contributing greatly to public confidence in charities. This does not mean that a trustee can never receive any payment or benefit from a charity; there are sometimes good reasons why it can be in a charity’s interests to make a payment to a trustee. Trustee boards need, though, to minimise the risks to their charity’s reputation and operation. This guidance is designed to clarify the law and good practice where trustee boards propose to make payments to one or more of the trustees.
7.2.1 What this guidance covers
The guidance explains:
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what can be classed as legitimate trustee expenses; the Commission emphasises that trustees should not be ‘out-of-pocket’ as a result of the work they carry out on behalf of their charity (section 3)
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how charities can use the statutory power to pay trustees and connected persons for goods or services (provided by the Charities Act 2011 (as amended)), and the conditions they must meet when doing so (section 4)
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the limited circumstances where payment may be made for serving as trustee, and the issues trustee boards need to address when considering these payments (section 6)
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when the Commission’s authority is needed if a trustee, former trustee, or person connected with a trustee, takes up paid employment with a charity. The guidance also covers situations where an employee of a charity becomes a trustee. (section 7)
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when a trustee may be paid reasonable compensation for loss of earnings (section 8)
To support charity trustees’ use of this guidance, the Commission has included examples within the guidance. It has also included details of other relevant guidance and contact details of organisations that can also provide useful advice affecting the issue of trustee payment.
7.2.2 What does the Commission mean by ‘expenses’ and ‘trustee payments’?
Expenses are normally refunds by the charity of costs a trustee has had to meet personally to carry out trustee duties. In some cases, these expenses may be paid in advance. A refund of properly incurred expenses is not a trustee payment, nor does it count as any kind of personal benefit.
Trustee payments are a financial or other measurable benefit paid to a trustee, or to a ‘connected person’ (see section 2.3), from a charity’s funds in return for work the trustee has carried out for the charity. In most cases, this involves paying a trustee for goods or services over and above normal trustee duties - for example, plumbing services and parts (goods and services), painting the charity’s premises and supplying the materials (goods and services), providing sports equipment (goods), or legal or accountancy work (services). But it can also include payment for serving as trustee, and payment to a trustee as an employee of the charity in a separate role (for example a chief executive, head teacher, or religious leader who also sits on a charity’s board).
Trustee payments might also be made ‘in kind’ - for example, free use of the charity’s facilities or services for which users normally must pay.
7.2.3 Meaning of other terms and expressions
The word ‘must’ is used where there is a specific legal or regulatory requirement that you must comply with. ‘Should’ is used for minimum good practice guidance you should follow unless there’s a good reason not to.
Although the Commission has tried to write this guidance in everyday language, there are several technical terms it needs to use in places. This list explains some of them:
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Applicable Statement of Recommended Practice (‘SORP’) is the term used to describe the SORP to be used by the charity to prepare its accounts on an accruals basis which is in effect for the financial year for which the accounts are being prepared
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breach of trust: a breach of any duty imposed on a trustee; for charity trustees, these duties may be found in the provisions of a charity’s governing document, laws and regulations, or orders of the court or the Commission
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charitable company: a company formed and registered under the Companies Act 2006 for exclusively charitable purposes; this definition includes charitable companies registered under the Companies Act 1985, or which were in existence before that
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the Charities Act: the Charities Act 2011 (as amended)
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conditional power of payment: where use of a power to pay trustees can only be used with the Commission’s prior written approval
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conflict of interest: any situation in which a trustee’s personal interests or loyalties could, or could be seen to, prevent them from deciding only in the best interests of the charity
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connected person: in the context of trustee payment, this is defined by s.188 of the Charities Act and broadly means family, relatives or business partners of a trustee. It also covers businesses in which a trustee has an interest through ownership or influence. The term includes a trustee’s spouse or unmarried or civil partner, children, siblings, grandchildren and grandparents, as well as businesses where a trustee or family member holds at least one-fifth of the shareholding or voting rights. If in doubt about whether a person or business is a connected person, refer to s.188 of the Charities Act, or seek advice from a solicitor or other person qualified to advise on the matter
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court: usually means the High Court, but can mean any other court in England and Wales with jurisdiction over charities
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goods or services: for convenience, reference to ‘goods or services’ in this guidance means services provided, or goods provided, or goods and services provided together
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governing document: a legal document setting out the charity’s purposes and, usually, how it is to be administered; it may be a trust deed, constitution, memorandum and articles of association, will, conveyance, Royal Charter, scheme of the Commission, or other formal document
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prohibition on payment: an express instruction against paying trustees. This would usually be couched in negative terms, for example: ‘The trustees shall not pay…’ or ‘No trustee shall be paid…’. but a form of wording that says ‘All trustees must act gratuitously’ would also be a prohibition
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scheme: a legal document made by the Commission or the court which either sets out all the rules for running a charity (and is therefore its governing document), or which amends the powers of a charity (thereby forming part of its governing document)
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the 2000 Act: the Trustee Act 2000
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trustee: a charity trustee. Charity trustees are the people who are responsible for the general control and management of the administration of the charity. In the charity’s governing document, they may be collectively called trustees, the trustee board, managing trustees, management committee, governors or directors, or they may be referred to by some other title.
7.3. Payment of expenses to a trustee
The law entitles charity trustees to claim legitimate expenses while engaged on trustee business. No separate authority is needed in the charity’s governing document or from the Commission.
7.3.1 What are trustee expenses?
The short answer
Expenses are refunds by a charity of legitimate payments which a trustee has had to meet personally to carry out their trustee duties. Expense claims should normally be supported by bills or receipts, except where it is impractical to expect this, for example, where very small amounts are claimed.
In more detail
Any reasonable costs that allow trustees to carry out their duties can be classed as legitimate expenses. So long as the charity only pays the trustee for the actual cost or expense, the payment is not taxable. The following are examples of expenses:
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the reasonable cost of travelling to and from trustee meetings, and on trustee business and events; this can include the cost of using public transport, taxi fares, and petrol allowances to the level permitted by HM Revenue & Customs (HMRC) before tax becomes payable
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reasonable refunds for the cost of meals taken while on charity business
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the reasonable cost of childcare, or care of other dependants (for example, an elderly parent) whilst attending trustee meetings
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the cost of postage and telephone calls on charity business
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the costs of a trustee’s telephone rental and broadband subscription, so long as these are split to reflect the percentage of time relating to usage on behalf of the charity
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communication support: translating documents into Braille for a blind trustee, or into different languages; provision of alerting and listening devices, and other special aids for people with hearing impairment
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the costs of buying training materials and publications relevant to trusteeship
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providing special transport, equipment or facilities for a trustee with a disability
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cost of reasonable overnight accommodation and subsistence (including any essential care costs) while attending trustee meetings or other essential events such as voluntary sector conferences or specialist training courses
Payments which do not count as expenses
Sections 7.3.4 and 7.3.5 cover payments which are not expenses and which either cannot legitimately be made (7.3.4) or which can only be made if there is suitable authority (7.3.5).
It is also worth noting that reimbursement of trustees for purchases they have personally and properly made on behalf of the charity are not counted as expenses and are accounted for as part of the charity’s general expenditure.
7.3.2 Do charities need an expenses policy?
The short answer
It is good practice for charities to have an expenses policy.
In more detail
Paying reasonable expenses is a good way of ensuring that the whole trustee board participates in running the charity and, more generally, of ensuring that being a trustee is open to all. For example, this might be particularly relevant when seeking to recruit younger trustees or to ensure that people on low incomes can participate. Unless by personal choice, no trustee should be ‘out of pocket’ because of carrying out their normal duties and responsibilities. Charities should have a written expenses policy, setting out what is recoverable as an expense and what is not, and they should ensure the policy is clearly understood by all the trustees. If trustee boards are in doubt about whether something qualifies as an expense, they should take professional advice. If the Commission decides that an item is a trustee benefit rather than an expense, and there is no power in the governing document to make the payment, the Commission may be able to approve it if it can be shown to be in the charity’s interest to do so.
7.3.3 Can trustee expenses be paid in advance?
The short answer
Where they consider it useful, trustee boards can decide for advance payment of reasonable out-of-pocket expenses.
In more detail
Repayment of expenses should be dealt with as quickly as possible and can be made in cash, particularly for smaller items. Advance payment can be particularly useful where the cost can be predicted, for example babysitting costs while attending a board meeting, a direct debit for a broadband connection, or perhaps the cost of staying at a hotel when attending a conference. It will also be particularly helpful for trustees on low incomes or state benefits who may be unable to wait for repayment.
If the actual cost of expenses exceeds the amount advanced, then adjustments can be made. But trustee boards must be clear that any pre-payment scheme they put in place has appropriate safeguards and does not constitute a private benefit. They should ensure that any sums not spent are returned to the charity.
Where payment exceeds actual cost: any payment kept by a trustee over and above the actual cost of the expenses will be an unauthorised private gain, and liable for repayment to the charity.
Entitlement to benefits: state benefit rules have clarified that entitlement to benefits will be unaffected by payment for expenses paid in the future. In case of any dispute, clear record keeping will enable a charity to show that such payments are a reimbursement, and not income for the trustee concerned.
7.3.4 What payments would not be legitimate trustee expenses?
The short answer
Expenses which are excessive, and/or which do not relate to legitimate trustee activities.
In more detail
The following are all examples of payments which are not legitimate trustee expenses or payments:
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payment of hotel accommodation or travel costs for spouses or partners who are not themselves travelling on charity business
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payment of private telephone bills for business unrelated to the charity
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payment of private medical insurance
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petrol mileage rates above the levels approved by HMRC for claimable expenses
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in the case of a trustee nominated by a local authority, expenses already allowed for under that authority’s statutory or contractual arrangements.
There are many other examples. Generally, charities should be wary of the risk of excessive or false trustee expense claims. Any misuse of charity assets for private benefit can damage public confidence in a charity, can affect the charity’s ability to operate for the public benefit and is likely to amount to mismanagement or misconduct. The trustee may also be liable to repay the charity for any excessive or false trustee expense claims.
7.3.5 What legitimate payments not counted as expenses might need authority?
The short answer (legal requirement)
Some types of payment are often confused with expenses, when they are actually trustee benefits which HMRC will consider can be taxed as income. They can only properly be paid out of charity funds if there is suitable authority for doing so.
In more detail
The following are all examples of payments which are not expenses, and which the Commission might need to authorise:
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compensation for loss of earnings whilst carrying out trustee business (see section 8)
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allowances: for example, a personal clothing allowance
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honoraria (small or token sums not intended to reflect the true value of the service provided - see section 6.8)
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payment for use of a trustee’s property (or part of it) for storage and use of charity equipment.
7.3.6 How should trustee expenses be accounted for?
The answer (legal requirement)
Charities that have to prepare accruals accounts must follow the applicable Statement of Recommended Practice (SORP) which sets out accounting requirements for charities. In practice, this covers all charitable companies, as well as all other types of charity with gross yearly incomes of more than £250,000.
As part of the SORP requirements, charities must disclose as a note to their accounts:
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the total amount of trustee expenses
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the nature of the various expenses
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the number of trustees involved.
For this purpose, expenses do not include purchases made on behalf of the charity for which a trustee has been reimbursed. If trustees have received no expenses, this should also be stated.
The Commission recommends that all charities should follow this approach to accounting for expenses, even if they are not formally required to follow the SORP requirements.
7.4. Paying trustees for goods or services
This section focuses on the power that allows charities to pay trustees for additional goods or services they provide to their charity over and above their normal trustee duties (‘the statutory power’). Trustees must take this guidance into account before they enter into an agreement under this power.
Trustees can be paid for providing goods or services to the charities for which they are trustees. The power to do this comes from section 185 of the Charities Act which allows trustees to be paid under certain conditions. The statutory power also applies to:
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payments for goods or services provided by connected persons (see section 7.2.3)
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any trustees or nominees that may have been appointed simply to hold the title to a charity’s property
The conditions that must be followed are outlined in section 7.4.3.
Situations not covered: charities cannot rely on the statutory power to pay their trustees where:
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the charity wishes to pay a trustee for serving as trustee (see section 7.6)
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the charity wishes to employ a trustee or a connected person under a contract of employment (see section 7.7)
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the charity’s governing document has a strict prohibition against payment for goods or services (see section 7.4.10)
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the conditions for making the payment cannot be met (see section 7.4.3).
Trustees may also have a separate power to pay trustees for goods or services in their governing document.
7.4.1 What goods or services can a charity pay its trustees for?
The short answer
A charity can pay a trustee for the supply of any goods or services over and above normal trustee duties. The decision to do this must be made by those trustees who will not benefit. They must decide that the service is required by the charity and agree it is in the charity’s best interests to make the payment and must comply with certain other conditions (see section 7.4.3).
In more detail
Examples of goods or services that may be provided by a trustee in return for payment under the power in the Charities Act include:
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the delivery of a lecture
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a piece of research work
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the use of a trustee’s firm for a building job
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the occasional use of a trustee’s premises or facilities
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entering a maintenance contract with a trustee’s firm
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providing curtains or decorating materials for hall premises
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providing timber for a building
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providing specialist services such as estate agents, land agents, management and design consultants, computer consultancy, builders, electricians, translators, and graphic designers.
The power cannot be used to allow payment for auditing services as a trustee cannot legally act as an auditor for their charity.
7.4.2 What if a charity already has a power to pay its trustees for goods or services?
The answer
The statutory power to pay for goods or services is additional to any other form of authority to pay a trustee which exists in law or in a charity’s governing document.
Where a power in a charity’s governing document is:
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more restrictive than the statutory power, the charity can rely on the wider statutory power provided there is no prohibition against the type of payment the trustees want to make in the charity’s governing document - for example, if the charity’s governing document only allows payment for professional services, the charity can use the wider statutory power to pay a trustee for building services as long as the governing document doesn’t prohibit this type of payment
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less restrictive than the statutory power, the charity can rely on its own power.
Conditional powers: many charities have a power to pay trustees which requires the Commission’s prior written consent before it can be used. This is known as a conditional power. The need for the Commission’s consent has now been removed where charities can meet the conditions of the statutory power, which are explained in section 7.4.3.
7.4.3 What conditions must be met before paying a trustee for goods or services?
The answer (legal requirement)
There are a number of conditions, all of which must be met before payment can be made validly. The conditions are that:
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there is a written agreement between the charity and the trustee or connected person who is to be paid (see section 7.4.4)
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the agreement sets out the exact or maximum amount to be paid (see section 7.4.4)
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the trustee concerned may not take part in decisions made by the trustee board about the making of the agreement, or about the acceptability of the goods or services provided (see section 7.4.4)
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the payment is reasonable in relation to the goods or services to be provided (see section 7.4.6)
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the trustees are satisfied that the payment is in the best interests of the charity (see section 7.4.7)
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the trustee board follows the ‘duty of care’ set out in the 2000 Act (see section 7.4.8)
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the total number of trustees who are either receiving payment or who are connected to someone receiving payment are in a minority (see section 7.4.9)
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there is no prohibition against payment of a trustee (see section 7.4.10).
It is also a condition that, before entering into this type of agreement, trustees must ‘have regard to’ the Commission’s guidance on the subject. Trustees must also be able to show that:
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they are aware of this guidance
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in making a decision where the guidance is relevant, they have taken it into account
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if they have decided to depart from the guidance, they have a good reason for doing so.
7.4.4 Can the written agreement to pay for goods or services simply be a record in the charity’s minutes? If not, is there a standard format for the agreement?
The short answer (legal requirement)
No, recording the proposed arrangement in the charity’s minutes will not be enough to meet the conditions for an agreement. There must be a separate written agreement which must cover the issues set out below, but there is no set format. The format will depend on the nature of the goods or services being provided, and the level of detail needed to cover it. Legal advice should be sought if an arrangement is likely to continue for some time, or if it is particularly complex.
In more detail
Content of the agreement: although there is no set format, there are certain elements the agreement must contain:
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an accurate description of the goods or services to be provided
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the name of the trustee or connected person (including a business) who will receive the payment
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details of the amount, if a ‘one-off’ or fixed-term payment, or else the maximum amount for goods or services to be provided over the duration of the agreement. Where the benefit is a ‘payment in kind’, details of the benefit and its approximate value must be given.
As a matter of good practice, it should also contain the following statements to show that the trustee board has considered these factors and has therefore complied with its duties when reaching a decision (see sections 7.4.6 and 7.4.7):
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a statement that the trustee concerned (including one who is connected to a person providing goods or services) will withdraw from any discussion of the trustees which has any bearing on the terms of the agreement or the acceptability of the standard of goods or services provided; this should not, however, prevent a trustee or connected person from providing information which the trustee board may need in order to reach a decision
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a statement that the trustee concerned will not vote on any of these matters, and must not be included when deciding whether a quorum exists at a meeting to discuss them.
Signing the agreement: the agreement must be signed by someone authorised by the trustees to do so. This could be one or more of the trustees who do not stand to benefit under the agreement, or someone who is not a trustee but who has a sound knowledge of the matter. The agreement should also be signed by the trustee or connected person who is to be paid.
Keeping a record of the agreement: as the agreement forms part of the charity’s accounting records, it must be retained for at least 6 years.
7.4.5 Why are there requirements for withdrawing from meetings and not voting, and should these be recorded in the agreement?
The short answer (legal requirement)
The requirements are designed to ensure that any trustee who stands to benefit cannot influence the trustees’ decisions relating to that benefit. Including a statement in the agreement that these requirements apply is not required by law but can help demonstrate to those who fund or use the charity that proper steps are being taken to manage the conflict of interest.
In more detail
Requirement to manage conflict of interest: one of the conditions that must be met when using the statutory power is that the trustee concerned must not take part in any discussion or vote on any decision of the trustee board in setting the terms and conditions of the payment, or any decision to allow or continue with the payment.
It will not be a breach of this requirement if, before its discussion, the trustee board simply asks the person concerned to provide any information necessary to help decide.
Breach of condition: if this condition is not met, the Commission can require the repayment of all or part of any money received, including the monetary value of any ‘payment in kind’. The Commission can also require the charity to withhold further payment.
If the condition is breached, it will not affect the validity of the services provided.
Further advice: Manage a conflict of interest in your charity provides more detailed advice about managing conflicts of interest.
7.4.6 What constitutes a ‘reasonable payment’?
The short answer
There are several factors to take into account, relating to affordability, price and quality. In terms of price and quality, trustee boards should normally test the market and use comparisons for similar work to ensure they are paying no more than the ‘going rate’.
In more detail
Factors to consider: when considering whether a payment is reasonable, trustee boards should consider:
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whether the charity can afford the payment
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the value to the charity of the goods or services provided by the trustee
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the quality of the goods or services and the reliability of the supplier
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any costs previously paid by the charity in obtaining those goods or services
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how much other organisations pay for similar goods or services in similar circumstances
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the implications for the reputation of the charity with its donors, funders, members and supporters, and with the public.
Making comparisons: trustee boards should obtain quotations from other suppliers, unless the amounts involved are very small. Proper records should be kept of these, and of any other information used in making comparisons. Generally, the higher the costs, the more trustee boards need to be able to show they have properly tested the market and have obtained value for money. And where a charity has a policy on procurement and purchasing, trustees should ensure they comply with its terms when paying for goods or services from a trustee.
Tendering may not be required: a full tendering exercise (i.e. obtaining bids from interested suppliers) will not always be economic or appropriate - for example, if the transaction is relatively small, and good quality goods or services can be provided quickly and at low cost. Trustee boards should ensure a proper record is kept of the basis for their decision, including why the level of payment is considered reasonable - preferably by reference to payments in similar situations.
4.7 How do trustees decide that this sort of payment is ‘in the best interests of the charity’?
The short answer
Before deciding, trustee boards must be satisfied that the arrangement is in the best interests of the charity. This means they should be satisfied that the goods or services are required by the charity. They should also be able to show there is a clear advantage to the charity in using one of its trustees instead of someone else. In many cases, this will involve a simple financial advantage, but there can be other factors that might influence a decision to pay a trustee. These should be weighed against any likely disadvantages; for example, that the person would be barred from contributing to decisions about the scope of the goods or services required and the terms and conditions on which they will be provided.
In more detail
Value for money: the service must be needed by the charity, and the trustee concerned must be sufficiently experienced and skilled or qualified to deliver it. There may be a cost advantage in using a trustee, but this does not always mean work should be done ‘on the cheap’. Quality is important, and speed of delivery might also be a factor. Trustee boards must be satisfied that the charity will be receiving value for money, and that there will be no adverse effect on its reputation, or levels of support and funding. The board must ensure that the charity can afford the cost of the goods or services, without any adverse impact on the charity’s activities.
Knowledge of the charity: a particular knowledge of the charity and its working environment can sometimes be an advantage. A trustee board may decide that for less - or no more - than the market rate, it can use the skills of a trustee who knows the specific requirements of the charity and is competent to provide the goods or services in question.
Purchase of goods: where goods are supplied by a trustee, either in connection with a service provided or as standalone items, there must be a clear advantage. This will normally mean items being supplied at a favourable rate. Where quality is also a factor, there should still normally be a significant ‘value for money’ advantage to the charity.
When there is no advantage: where there is an unfavourable financial comparison with an outside supplier, and no special expertise or knowledge that would benefit the charity, the charity should use the supplier who is not a trustee. There would be no clear advantage in using the trustee, because of the need to manage the conflict of interest (see section 7.4.5).
7.4.8 What is meant by the ‘duty of care’ and how does it influence the decision to pay trustees for the provision of goods or services?
The short answer (legal requirement)
The statutory power requires trustees to follow the duty of care set out in the 2000 Act. This means that the trustee board must act honestly and in good faith and must exercise all reasonable care and skill in reaching their decision.
In more detail
Exercising all reasonable care and skill means allowing for:
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any special knowledge or experience a person has or says they have
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any special knowledge it is reasonable to expect from a business or professional person when acting in either capacity.
The level of competence and proficiency required of a trustee will vary according to the level of expertise the person has.
To fulfil their duty of care when deciding to pay one of their trustees, the Commission would expect trustee boards to:
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exercise the power responsibly in the best interests of the charity
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take professional or other appropriate advice when in doubt
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be clear that payment of a trustee can be justified
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ensure that conflicts of interest are properly and openly managed
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ensure that agreements are complied with and that any poor performance is identified and addressed
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retain the agreement as part of the charity’s records as required by law
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disclose the payments in the charity’s accounts.
7.4.9 How many trustees can be paid at any one time for providing goods or services?
The answer (legal requirement)
The statutory power can only be used if, at the time in question, the total number of trustees receiving payment from the charity’s funds will be a minority of the trustee board.
When assessing this, the trustee board needs to take into account the number of trustees who are receiving directly or indirectly (through a connected person) any trustee payment as defined in section 7.2.3. This means they need to include:
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any trustees connected to persons or businesses receiving payment
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any trustees who are receiving payment for serving as trustees
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trustees who are also paid employees of the charity
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trustees receiving any other form of trustee benefit.
For deciding if the meeting is quorate, those trustees who face a potential conflict of interest as a result of the issue being discussed should be excluded.
If there are only two trustees, the statutory power cannot be used, since paid trustees would not then be in a minority. If there is no other authority for the payment, either the Commission’s approval will be needed, or, if the governing document allows it, the trustees can appoint an additional unpaid trustee, which may then enable the statutory power to be used.
7.4.10 Can a charity pay one of its trustees for goods or services even if its governing document prohibits this?
The short answer (legal requirement)
No. In these cases, payment can only be made after the prohibition has been removed. Charities can remove such a prohibition but may need the Commission’s involvement.
The effect of removing the prohibition will be to enable a charity to use the statutory power to pay trustees for goods or services: it would not allow any other form of trustee payment. (See 7.4.2 for the position where there is a conditional power, rather than any outright prohibition.)
In more detail
A charitable company can use the statutory power of amendment in the Companies Act 2006. Other types of charities can use the statutory powers of amendment set out in the Charities Act 2011 to remove a prohibition on payments that are allowed by law by amending their governing document.
If the charity has members, it is the members that must vote to amend the governing document. Most charities can do this without Commission authority unless there is a conflict of interest that the charity cannot manage, such as when:
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the only members of the charity are its trustees
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there are not enough members who are not also trustees to vote on the change.
This is because where there are members who are not trustees, they are not conflicted and can make the decision to change the governing document. Members who are also trustees are conflicted.
If your charity is a trust, you will need the Commission’s authority to remove the prohibition (because there are no members, and the trustees will not be able to manage the conflict of interest).
If Commission authorisation is required, the trustees will need to apply to the Commission for an order. Trustees will need to demonstrate that they have made a reasonable decision in the best interests of the charity.
A charity must obtain Commission authorisation if it is using a power of amendment in its governing document that requires the Commission’s consent.
If you need authority, contact the Commission for Consent for Making Payments.
7.4.11 Can the agreement to pay a trustee for goods or services be amended?
The short answer
Yes - by a majority decision of the trustees who do not stand to gain. It is also necessary in these cases either for the trustee being paid to agree the change or for the contract to provide for such a change.
In more detail
Any change to the terms and conditions of the agreement must be discussed and approved by a meeting of the trustee board in the absence of the trustee who is providing the goods or services (or who is connected to someone doing so). The new terms must be in the best interests of the charity, and they must be agreed by a majority vote of the trustee board - again excluding the trustee concerned, who must not form part of the quorum for the purpose of the meeting. The trustee board’s decision to vary the terms should be recorded in the minutes of the meeting at which that decision is taken. (As with the original agreement, the trustee concerned can be asked to provide information to the trustee board ahead of any discussion.)
An agreement can usually only be varied with the agreement of all the parties. If this is the case, an amended written agreement should be made.
7.4.12 Must these payments be mentioned in the charity’s accounts?
The short answer (legal requirement)
Yes, in the case of accounts prepared on an accruals basis - in other words, charitable companies and those other types of charity with a gross yearly income of more than £250,000.
In more detail
Under the applicable SORP accounting framework, charities that prepare their accounts on an accruals basis must give details of payments and other benefits to charity trustees and connected persons - including family members and businesses. They are also required to say under what legal authority the payment is made, together with the reason for it.
Although there is strictly speaking no need for this in the case of charities that prepare accounts on a receipts and payments basis, the Commission recommends, as best practice and to enhance transparency, that similar details are provided. This can help protect trustees from accusations that they are benefiting in some hidden way.
See Charity reporting and accounting: the essentials November 2016 (CC15d)
7.4.13 What if a charity wants to pay for goods or services to be provided by a trustee or connected person, but cannot comply with all of the conditions of the statutory power?
The answer
If not all of the conditions set out in section 7.4.3 can be met, trustee boards are advised to contact the Commission with the details before making any payment, to request its approval. The Commission will not approve any proposal involving excessive costs, or which will result in an unacceptable personal benefit, or anything else clearly against the interests of the charity. But if a proposal is reasonable in terms of cost, conflicts of interest are managed and it represents a clear advantage to the charity, rather than to the individual concerned, the Commission will usually authorise it. It will consider the overall level of trustee payment, and any other relevant circumstances when assessing such cases including whether such a payment is expressly prohibited.
7.5. Payment of trustees for work they have already carried out for the charity
In exceptional circumstances a charity can apply to the Commission for authorisation to either pay a trustee, or for a trustee to retain payment, for work they have already carried out for the charity. The trustee who completed the work can also make the application.
It can only be awarded where the Commission decides it would be inequitable for the trustee not to be paid for the work they have completed. This is called an ‘equitable allowance’ and can also be awarded by the courts.
It can be awarded to a person who has since stopped being a trustee, but they must have been a trustee when the work was carried out.
The Commission’s authorisation can be either for:
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the charity to make the payment, or
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the trustee to retain the payment (or part of the payment) that they have already received for carrying out the work.
The Commission will usually only consider an application for an equitable allowance where there is no other authority for the payment. For example, the Commission would not normally consider an application if a charity’s governing document allows the payment, or the statutory power under section 185 of the Charities Act (explained in section 4 above) could be used.
In making the decision, the Commission must have regard to several factors in law. This includes the Commission considering whether awarding the equitable allowance would encourage trustees to breach their trustee duties. We will therefore consider a range of information and evidence, including whether the trustee accepts liability for breach of duty, and how the charity intends to make sure this situation doesn’t happen again.
To apply, you will need to provide:
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the name of the trustee who completed the work and has been paid or is to be paid
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a description of the work carried out by the trustee, why it was needed, and whether – had the trustee not carried out the work – the charity would have paid someone else to do it
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confirmation that the work was over and above the trustee’s usual trustee duties
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evidence that the trustee carried out the work in question. This could be the trustee’s invoice, and it should also include corroboration from the other trustees that the trustee did carry out the work
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the level of skill with which the work was carried out. Explain whether the trustee had the skill required, such as any necessary qualifications or experience
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whether the charity’s governing document expressly prohibits the payment. An express prohibition does not necessarily mean an application will be rejected
-
the reasons why you could not comply with the statutory power at section 185 of the Charities Act; and confirmation that the charity could not use a governing document power to pay the trustee
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why you did not obtain authority before the trustee was paid, or before they carried out the work
-
whether the trustee accepts liability for breach of duty, as explained above
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how much you paid the trustee, or wish to pay them, and how this was determined. Explain how you have decided that the level of payment is reasonable. For example, by reference to an hourly or day rate or quotes you obtained for the same work from someone who is not a trustee
-
what steps the charity has taken to avoid the same situation happening again, such as having a policy or extra training about trustee payments
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whether all the trustees support the application. The Commission would not usually consider an application if the other trustees did not support it. We would usually want a copy of the trustee resolution to apply for an equitable allowance
-
why it would be inequitable for the trustee not to be paid or not to retain a payment
-
whether the trustee or the charity has applied for an equitable allowance before, and whether it was awarded or refused
-
confirmation that the information you have provided is fair and accurate. You should be aware that it is an offence under section 60 of the Charities Act 2011 to knowingly or recklessly provide false or misleading information.
If your charity is an exempt charity, the Commission will consult with your principal regulator before making its decision. To apply, email: equitableallowance@charitycommission.gov.uk
Read the Commission’s privacy notice Personal information charter.
The application you submit, and any authorisation the Commission provides, will only cover work that the trustee has already completed. If your charity wants the trustee to continue the work, and wants to pay the trustee for that work, you will need to use the statutory power at section 185 of the Charities Act or apply to the Commission for prior authority.
7.6. Paying for trusteeship
This section explains the limited circumstances in which trustee boards can pay a trustee for carrying out trustee duties.
7.6.1 What is the difference between paying a trustee for the provision of goods or services and paying for trusteeship?
The short answer
While there is a general power to pay a trustee for providing goods or services, there is no such general power to pay a trustee for carrying out trustee duties. Charities cannot do this unless they have a suitable authority, either in the charity’s governing document, or provided by the Commission or the court.
In more detail
Paying a trustee for the provision of goods or services usually involves a charity making a one-off or occasional payment to a trustee who is to provide it with specific goods or services that are separate from their normal trustee duties. Many charities already have a specific power to do this in their governing documents. If not, they can usually rely on the statutory power contained in the Charities Act, described in section 7.4 of this guidance.
In contrast, payment for trusteeship means that a trustee receives payment from a charity for carrying out their normal trustee duties. In some cases, payment will be made on a continuous basis whenever these duties are carried out; or it may take the form of a periodic or annual allowance; or it may be made on an occasional basis, intended to reflect only a certain aspect of the trustee role, or to enable a trustee to attend a specific meeting or event.
Crucially, there is no general power in charity law for trustee boards to make such payments, and normally they cannot do so unless their governing document specifically allows it, or unless they have authority from the Commission or the court. (There are only very limited exceptions to this - occasionally where charities may be regulated primarily by legislation other than the Charities Acts.)
Without such authority, any such trustee payment is a breach of trust - even if the charity benefits from the transaction. As this might mean the trustee board or the individual trustee who has been paid being made liable to repay all or part of the payment, trustee boards without a suitable power should seek authority before any payment is made. Unauthorised payments may be evidence of misconduct or mismanagement.
7.6.2 Is paying for trusteeship contrary to the voluntary principle?
The short answer
Unpaid trusteeship has always been a distinctive feature of charitable activity, and greatly enhances public confidence and trust in charities. There is a general expectation that charity assets should be used directly for the purposes of the charity. Therefore, any departure from this position is only likely to occur in exceptional circumstances and needs to be fully justified by trustee boards as being clearly in the interests of their charity.
In more detail
There are circumstances where payment may be justified (see section 7.6.3), but trustee boards need to be clear they can justify a decision to pay one or more of their trustees, and that they can also manage the risks involved in doing this. A major risk area will be the need to manage conflicts of interest. The more trustees who stand to benefit, the bigger the risk and potential disadvantage, particularly in terms of conflicts of interests.
Trustee boards should consider carefully whether there is likely to be any adverse effect on the reputation of the charity amongst its supporters and users - the charity might attract criticism if payment appeared to be excessive and widespread. An open and transparent approach to explaining the reasons for payment, and to accounting for them, will help reduce the level of risk.
Trustee payment must only be incidental to the purposes of a charity, and if a charity appears to be becoming a vehicle for trustee payment, the Commission will use its powers to protect its assets. In an extreme case, charitable status could be placed in jeopardy.
7.6.3 When can paying for trusteeship be justified?
The short answer
When there is a clear and significant advantage to the charity that will outweigh any disadvantages.
In more detail
If the Commission is asked to approve a payment, it will normally only do so where a charity’s complexity of operation has led to an unusually high burden of trusteeship. This will usually involve a trustee exercising a higher degree of responsibility and supervision in a complex field of activity, perhaps because of the breadth and range of activities undertaken by the charity.
It is often argued that payment can overcome difficulty in recruiting new trustees. There are, however, many methods of recruitment, including targeted advertising and online publicity, use of specialist agencies and trustee brokerage services, and use of open selection processes. Before considering payment, the Commission advises charities to review the effectiveness of their recruitment mechanisms; see the guidance Finding new trustees (CC30).
In many cases, simply paying legitimate reasonable expenses may be all that is needed to reassure potential recruits that they won’t be out of pocket by taking on trusteeship; generally, the Commission recommends that all charities have a written expenses policy (see section 3).
But if trustee boards are convinced that only payment of a more direct benefit will enable them to obtain the skills, experience, and diversity they need for the charity, the Commission will consider a reasoned case based on the factors set out in section 7.6.4. This includes payment where compensation for loss of earnings is a factor (see section 7.8).
Case study
A large grant-making charity applied for remuneration for future chairs and certain trustee posts based on the high level of time and commitment involved. The charity felt that, without offering payment for the time commitment and for the responsibilities that come with oversight of a multi-million-pound organisation, it could not attract the right calibre of candidate, and would be likely to attract only those who were retired or ‘well-off’. It provided evidence that, even with a well targeted recruitment campaign, it was struggling to attract the right calibre of candidate.
The Commission approved payment for chairs but rejected an application for payment of five other trustee posts, for which the charity wished to attract experts in its field. There was little similarity in time commitment compared with the chair, and no evidence that these posts were difficult to recruit for; indeed, previous recruiting campaigns suggested the opposite was the case, as several well-qualified candidates had come forward.
There are many reasons for becoming a trustee - financial reward rarely ranks among them. Identification with a particular cause or purpose, a sense of serving the community, or the opportunity for personal development, can all attract people to trusteeship. Where this is the case, charities should find no difficulty filling trustee vacancies. Generally, the Commission advises that trustee boards look at several recruitment methods before they consider trustee payment as an option: the Commission would need to see evidence that there is a lack of volunteers with the right skills.
It is likely that a charity will expect a trustee who is paid to have special knowledge and experience and that consequently the level of care and skill expected of that trustee will be higher than for someone who is not paid.
7.6.4 What factors should trustees cover when applying to the Commission to approve a payment?
The short answer
The trustee board should show why the charity will not be as effective without payment. If it is proving difficult to recruit new trustees without payment, the board should normally provide evidence that it has made a serious attempt to recruit trustees on an unpaid basis. It is not in the interests of a charity to pay a trustee if it is easy to appoint one with the right skills and competence to act without payment.
In more detail
Main factors to consider: The trustee board needs to show:
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what steps have been taken to recruit trustees without payment - if none, then reasons should be given
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why it considers there are clear and significant advantages to the charity in paying a trustee rather than, for example, spreading duties among other trustees, or increasing the number of unpaid trustees (if the governing document allows it)
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whether the functions to be carried out are genuinely those of a trustee - as distinct from functions of an employee or a consultant; has the charity made the right balance between its executive and non-executive functions?
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that the payment can be shown to be reasonable and affordable, and will not affect the charity’s ability to carry out its objects
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what risks they have identified and how they will manage them (see section 7.6.2)
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how the unpaid trustees will be able to review performance (including dealing with poor performance), judge value for money and, if necessary, bring the payments to an end
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how the conflicts of interest will be managed, so that the ‘conflicted’ trustee can still take an effective role in the governance of the charity.
In cases where the Commission can provide authority, it would normally expect to give this where the number of trustees benefiting is in a minority.
Applying for approval: all applications for authority to make payments to a charity’s trustees should be made using the trustee payments application form. Using the form will ensure that the Commission is given all the necessary information in one submission, avoiding the need for additional rounds of correspondence.
Making comparisons: to manage or help avoid conflicts of interest and to provide objective evidence, charities may find it useful to consider ‘benchmarking’ (testing what is the ‘going rate’ for a similar job in a broadly similar organisation), or using review mechanisms - such as payment committees or outside bodies - to review pay scales.
In some cases, the Commission may include provisions for benchmarking or review in its payment authority.
Consultation: in some cases, particularly where larger charities wish to pay significant numbers of trustees (for example, payment of chairs and regional chairs, payment of whole boards), the trustee board may wish to consider whether it would help to consult with those with a significant interest in the charity or any of its stakeholders. ‘Stakeholders’ can include anyone with a direct interest in the charity’s operation: funders, donors, users and beneficiaries, members, staff, volunteers, business/operating partners, and other relevant regulators or agencies.
Case study
A large educational trust running a group of schools had expanded considerably and was looking to extend its operations still further into Academy schools. The trust was attempting to recruit a new chair with a commitment of around 60 days per year; it sought authority for reasonable payment in recognition of the increased time commitment and complexity the role of chair now demanded.
The Commission was satisfied the trust had conducted an extensive advertising campaign, including use of a leading recruitment agency. The results showed considerable reluctance to undertake the commitment required on an unpaid basis. It agreed the proposed remuneration of the chair, subject to its further approval to any subsequent increases in the agreed rate of payment.
7.6.5 Can charities offer trustee benefits to help improve the diversity of their boards?
The short answer
It is more and more the case that charities wish to attract a diverse range of trustees. In urging charities to seek greater diversity on their trustee boards, the Commission recognises the advantages of recruiting and retaining trustees who have a particular knowledge of the communities and areas in which their charity operates. It supports the view that people should not be excluded from trusteeship because of their economic circumstances. Not every trustee will always be able to give their time freely, and the Commission accepts that in some cases, particularly where loss of earnings will cause hardship, an element of financial compensation might be justified.
In more detail
A trustee board that reflects the composition and diversity of a changing society and of its beneficiaries is something all charities should strive to achieve. A diverse board is more likely to contain a broader range of skills, knowledge and experience than one which is more narrowly based. Effective recruitment and induction are key to this. Where charities need to draw on a wider trustee base, with new skills, ideas, and abilities to help them deliver better services to their communities, they may need to look at introducing new practices to encourage more diverse recruitment. These might include some of the factors mentioned in section 7.6.4, and also in the guidance Finding new trustees (CC30).
But where it is clear that the potential loss of earnings are preventing promising candidates from applying, charities can consider whether some reasonable financial assistance will help with their recruitment. The Commission does not suggest, though, that paying trustees should be seen as an automatic solution to widening the trustee base.
Expanding diversity: when preparing to recruit new trustees, a charity should, in general, seek to increase or at least maintain the diversity of its trustee board. On one level, this may involve enabling the users of the charity’s services to be properly represented on its trustee board. Provision of additional facilities or equipment may help with this (see the guidance Users on Board: Beneficiaries who become trustees (CC24).
But in a much wider sense, having a more diverse board means taking positive steps to recruit trustees from parts of the community which may not traditionally have played a large role in charity governance: for example, young or unemployed people, people from ethnic minority groups, or people with disabilities. Some charities may have a specific need to recruit trustees who have low incomes or from economically deprived areas. The Commission believes it is important that people should not be prevented from becoming charity trustees because of financial hardship.
Use of expenses: direct payment for being a trustee is not necessarily the best way to secure wider representation on the trustee board. Wherever possible, charities should ensure they can offer reasonable upfront expenses for the cost of transport, meals, childcare, and accommodation when on charity business. It is important that no-one fears they will be out of pocket by becoming a trustee. The Commission recommends advance payment of expenses where cost is likely to be an obstacle to anyone carrying out trustee duties. See section 7.3 for further details on the use of a clear expenses policy.
Loss of earnings: in some cases, it may be more than a question of being able to rely on expenses. Some trustees are unable to attend meetings outside conventional working hours, and some may find it difficult to get paid time off work to attend meetings. Ideally, trustee meetings should be held at times that are most convenient to all, and at readily accessible venues; but the Commission recognises this may not always be possible. In some instances, particularly where prospective trustees are self-employed or have low incomes and are likely to lose out financially when acting on charity business, some level of financial compensation for loss of earnings may be a practical option to support their continued involvement. This issue is discussed in more detail in section 7.8.
Case study
A charity providing social care and support across a wide spectrum of social need, including disability, wished to appoint a disabled person who was in employment as a consultant to serve on its trustee board. The board felt it important to secure the services of the person concerned to give a wider perspective on its work. The prospective trustee was self-employed so would miss out on potential earnings when conducting trustee business. To avoid financial hardship as a result, the Commission authorised reasonable payment to the new trustee as a direct replacement of loss of earnings while active on trustee business.
7.6.6 What if the person is receiving state benefits?
The short answer
Care should be taken where a trustee is receiving state benefits. The rules governing benefits and tax credits are complex, and charities will want to ensure that payment of a trustee does not result in a reduction in their entitlement to benefits.
In more detail
Any trustee who feels this might be a concern (either to them or to a member of their household) should obtain written advice from the relevant benefits office. Where it would help to clarify the position, the charity should be prepared, with the consent of the trustee, to contact the benefits adviser on the trustee’s behalf.
Further details: Volunteering while on benefits (GOV.UK website)
7.6.7 What is the position of sole trustees?
Where a charity has a single or ‘sole’ trustee (which might be an individual, or a corporation such as a local authority, or a bank or insurance company), payment decisions cannot be taken without a conflict of interest. Realistically, there is little advantage to any charity in its sole trustee being paid to act as trustee. It will be significantly more difficult to make a case for payment, particularly where statutory funds might also be available to administer the charity.
In more detail
The Commission will not normally authorise a proposed payment where a fee-charging company requests a provision that reflects its published commercial scales of payment, rather than a rate that reflects the value of work done for the charity. Where the Commission is required to approve a payment provision, its authority will limit payment to a reasonable charge in relation to that work.
A sole trustee may not profit from any charges it makes to a charity. For example, if it costs a local authority £150 per hour to employ a solicitor, it can charge any trust it administers up to £150 per hour. It cannot charge £200 per hour, even if that is the rate a solicitor in private practice would charge the trust - unless the charity’s governing document or the Commission has authorised charging on this basis.
7.6.8 Is authority needed for small payments or gifts?
The short answer (legal requirement)
In the interests of proportionality and the best use of the Commission’s powers and resources, the Commission does not usually require charities to seek its authority where the total value of all trustee payments (excluding expenses) is less than £1,000 in any financial year. The trustees still need to be satisfied that these payments are in the best interests of the charity. The Commission would, however, expect trustees to apply for authority for payments of less than £1,000 in a financial year in cases where, for example, the Commission is addressing issues of mismanagement with the charity.
In more detail
Generally, the Commission does not expect charities to seek any authority for a small trustee payment where the payment will still mean that total payments (excluding expenses) to all their trustees during the financial year will not exceed £1,000. This includes where trustee boards wish to make a small one-off payment (often known as an honorarium) to a trustee, for which there is no strict legal entitlement and no agreed amount, but which represents a gesture of appreciation and goodwill for services rendered to the charity - perhaps for long service. Payments that would result in the charity exceeding the £1,000 threshold are treated the same as payments for being a trustee and will need the Commission’s approval. The trustees still need to be satisfied that payments below the £1,000 threshold are in the best interests of the charity.
Gifts to retiring trustees: this approach includes gifts to trustees who are retiring or leaving to take up another post, usually involving token payments or small gifts. It is difficult to place hard and fast rules on what is an acceptable value of gift in these situations; it is for the trustee board to judge whether a person’s length of service and quality of contribution to the charity should be acknowledged with a leaving gift directly out of charity funds, taking account of any possible effect on the charity’s reputation.
Tax and benefits: a small one-off honorarium would not normally be classed as income by HM Revenue and Customs and should not be taxable. But a large, regular or ‘expected’ honorarium can be classed as taxable earnings and can also affect benefit claims. If such payments are not authorised by the charity’s governing document, the trustee board must seek the Commission’s authority if the total trustee payments to all trustees will be more than £1,000 for that year.
Further information is available on HMRC website www.hmrc.gov.uk
7.7. Employing a trustee or connected person
This section explains when the Commission’s express authority is required where a trustee, former trustee, or connected person takes up paid employment with their charity. It also covers circumstances where an employee of a charity becomes a trustee, and the potential need for the Commission’s authority when the spouse or partner of a trustee, or any other connected person, is employed by the charity.
7.7.1 Can a trustee also take up a separate position as an employee?
The short answer
Charity trustees may become employees of their charities in a variety of circumstances. Charities need to be aware, though, that the employment may need to be approved by the Commission.
In more detail
Sometimes a charity might need to employ someone for a particular job on a full or part-time basis, and the trustees may feel one of their number is ideally suited, through knowledge or motivation, to take on the job.
Need to justify decision: a trustee may be in a strong position to provide the necessary skills and experience, but because charities rely on the confidence of the public (including donors and beneficiaries) and must comply with the law on trustee benefits it is essential they are open and transparent about the processes and decision-making which lead to the employment. Any decision to employ a trustee or former trustee must be justifiable and must be made without favouritism or improper influence. This means a trustee or former trustee should not gain an ‘inside track’, or any unfair advantage because of their position, and potential conflicts of interest must be properly and openly managed. (See section 7.7.4; see also section 7.2 of this guidance, and Manage a conflict of interest in your charity.)
7.7.2 When must the Commission’s approval be obtained to the separate appointment of a trustee as an employee?
The short answer (legal requirement)
If decisions about the recruitment or appointment were made while the individual was (or continues to be) a trustee, the Commission’s approval to the employment must be obtained if there is no other express authority in the charity’s governing document or provided by the court for it. Without an express authority, there may be a liability for the employee-trustee to repay earnings to the charity or for the trustees who authorised the appointment to reimburse the charity. This does not occur very often, but it can arise in the event of a legal challenge from a third party (either within or outside the charity), or as the result of a Commission inquiry.
In more detail
No authority is needed if there is already a suitable express power. But otherwise, the Commission’s authority will be needed if:
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the person takes up the employment while still a trustee
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the job offer is made while the person is a trustee, even though they later resign as a trustee
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the person resigned as a trustee before the formal job offer was made and took part in an open recruitment process but played a major part in the trustees’ decision to create or retain the post, or in devising the recruitment process.
The last point covers any situation where a trustee or ex-trustee lobbied or canvassed for a post or was involved in devising the job specification or any other major aspect of the recruitment process, including advertising. It also covers involvement in agreeing terms and conditions for the post.
7.7.3 How should trustee boards apply for approval?
The short answer
All applications for authority to make payments to a charity’s trustees should be made using the online application form. Trustee boards should note that the Commission cannot authorise any payments retrospectively but can only authorise new or continuing payments.
In more detail
When applying for authority, trustee boards need to show that the post is genuinely required for the effectiveness of the charity and has not been created or tailored to meet the needs of the trustee or former trustee. The person appointed should not have gained any ‘inside track’ advantage in securing the post, and there should not have been any lobbying, undue influence, or collusion in relation to the appointment.
Main factors to consider in all cases: trustee boards need to satisfy the Commission that the post is genuinely required and is not weighted towards the experience of a colleague or ex-colleague. When explaining why they consider the employment is in the charity’s interests, the trustees need to show that:
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the charity has a need for the work to be carried out
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the person has the appropriate knowledge and skills for the job
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payment for the job is reasonable in relation to the work being carried out; how does it compare with payment for similar duties elsewhere? Is the charity obtaining value for money?
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the risks identified in section 7.6.2 have been considered and managed
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(usually) the job has been subject to an open and transparent selection process
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(where relevant to the charity) stakeholders have been consulted (see section 7.6.4).
If the person is to continue as a trustee, the Commission needs to know why this is necessary, and what arrangements are in place for managing any conflict of interest. How will performance be assessed? Does the trustee board have independent and objective mechanisms for appraisal in place?
Recruitment process: the trustee board needs to ensure the selection criteria properly meet the needs of the charity, and that there is a good balance in the job specification between skills, experience, and qualifications. An open recruitment process will help to show that the post has not been created simply to benefit the trustee.
If the Commission is asked to authorise an arrangement with no open recruitment process, where there may be doubt about the suitability of a trustee or ex-trustee to do the job, or evidence of improper influence on the selection process, it may require a proper recruitment exercise to be conducted, and for the post to be openly and properly advertised.
7.7.4 Can an employee become a trustee?
(This section also applies where employees or paid directors of subsidiary trading companies owned by the charity are appointed to its trustee body.)
The short answer
If an employee becomes a trustee, their employment usually occurs before their trusteeship and so is not a benefit arising from the trusteeship. Accordingly, there is no liability to repay any earnings received before the start of the trusteeship. In view of the potential conflict of interest after the start of the trusteeship, however, it can be helpful to obtain authority to permit the trustee-employee to retain any increases in payments made after that date where these are not within an agreed employee pay structure - see section 7.6.
In more detail
Points to consider: whilst combining the role of trustee and employee can occasionally be advantageous for the charity, the benefits would need to clearly outweigh the difficulties that can come with this dual role. The trustee board should be particularly clear why it is not sufficient for the relevant employee simply to attend their meetings (in a non-voting capacity) to contribute to discussion. If this sort of arrangement is established, there will need to be clear procedures for managing the potential conflict of interest.
Declaring an interest: the person concerned may be said to have an economic interest in retaining the employed post, and with enhancing its terms and conditions. To properly manage this potential conflict of interest, the Commission recommends the trustee board ensures the person concerned declares an interest, and that this is clearly recorded in the minutes and any register of interests the charity keeps.
Withdrawal from discussion: the trustee-employee should take no part in collective discussion or voting on the contractual terms and conditions of the employed post, or in any review of performance relating to it. This also includes any decision on whether it is in the charity’s interests to continue with the post. For greater transparency, the Commission recommends any withdrawals from relevant meetings by the trustee-employee are clearly minuted. For the most influential posts within a charity, however, this can be problematic as the following case study demonstrates.
Case study
The case of one charity highlighted what can sometimes be a difficulty with this type of arrangement. The Commission refused to renew a power of remuneration that would have allowed the chief executive officer to continue as a trustee. The CEO was also the founder of the charity, and the Commission’s main concern was that the trustee board was not taking adequate steps to strengthen its governance, so it could take decisions independently of the CEO and review their performance.
A key aspect of this case study was the need for stronger governance arrangements so that decisions could be made in the interests of the charity by the whole trustee body, free from the influence of the paid chief executive. Where the governance arrangements are strong - for example, they include clear procedures for managing conflicts of interest in an open and transparent manner - concerns about conflict of interests and undue influence are greatly reduced.
For example, the governance model for many church charities allows or requires the priest, pastor or vicar to be a trustee because it can be important for those in such a pivotal role within these charities to be involved in their strategic oversight and leadership. So long as the potential conflicts of interest which they face are properly declared and managed, this type of arrangement can be beneficial to the charity.
7.7.5 Is the Commission’s approval required?
The answer
Without an express authority in a charity’s governing document or provided by the Commission or the court, the validity of the trustee-employee arrangement described in section 7.7.4 could be susceptible to a legal challenge - either by the Commission, or by a third party. In practice, it may be very unlikely that an arrangement that is open, transparent, and clearly in the interests of the charity, would be challenged. But if trustee boards are in doubt about whether they have a suitable authority, they should contact the Commission for approval to reduce the risk of a challenge which, even if unsuccessful, could cause financial and/or reputational damage.
Any authority the Commission gives will be subject to its usual conditions designed to ensure the proper management of the conflict of interest, and that payment is reasonable in relation to the nature of the employment.
7.7.6 Is approval needed for future pay increases?
The answer
Where a trustee-employee is not being paid explicitly for being a trustee, negotiations in relation to pay and salaries should be completely outside the trusteeship role. The Commission does not need to approve annual increases in salary or benefits for a trustee-employee which constitute a reasonable incremental progression within an established and transparent employee pay structure.
However, where salary increments, bonuses, or other tangible benefits are substantial, and not clearly justifiable by reference to any formal pay scale, the Commission’s authority would be required if trustee boards wished to avoid potential legal challenge.
Generally, trustee boards should be wary of agreeing to any payment or benefits which might be regarded as excessive in relation to the employment, and which might cause concerns about unacceptable levels of private benefit within their charity.
Applying for approval: if the trustees think that the Commission’s approval is required, they should apply using the online application form.
7.7.7 What is the position where a trustee’s spouse or partner or other ‘connected persons’ become paid employees of the charity?
The short answer (legal requirement)
The Commission’s approval must be obtained if there is financial interdependence between the parties and there is no other authority for the transaction.
In more detail
Contracted employment: if a trustee’s spouse or partner becomes a paid employee on a full or part-time contract, then if they are financially interdependent, the trustee could profit from the employment. In law, this can be a trustee benefit, requiring express authority. This also applies to businesses owned by a trustee, or in which the trustee is a partner, a managing director, or has any financial interest. It can also apply to employment with a subsidiary owned by the charity.
Need for openness: trustee boards should be aware of the possible need for authority and ensure no improper influence has been brought to bear in the charity’s decision to employ a firm or individual. Any arrangement with a connected person should be open and transparent, so that it can be seen to be made in the charity’s interests. The trustee board should ensure any potential conflict of interest is declared and recorded in its minutes, and that the trustee concerned does not take any part in the board’s discussions and decisions concerning the terms and conditions of the connected person’s employment.
Seeking the Commission’s approval: authority is only required where there is a potential financial dependency between a trustee and a connected person who is employed (or where the charity’s governing document expressly prohibits the employment or requires our consent). Otherwise, no approval is needed – though any potential conflict of interest still needs to be managed. If trustee boards are in doubt about the need for authority, the Commission recommends they take advice from their own legal advisers.
Where it is decided approval is needed, the trustees should apply using the online application form.8. Compensating trustees for loss of earnings
This section explains the Commission’s policy where a trustee board seeks to pay reasonable financial compensation to secure or retain the services of a trustee who might otherwise struggle to play a full trustee role.
7.8.1 When can payment be made to cover loss of earnings while on trustee business?
The short answer
As with other forms of trustee benefit, a charity can make these payments if there is suitable authority and if there is a clear and positive advantage to the charity in doing so.
In more detail
This type of payment is not a routine expense (see section 7.3) and must be treated as a trustee payment (see section 7.2.3. There must therefore be an express authority for it, either within the charity’s governing document, or provided by the Commission or the court. Some charities do have a suitable power to compensate for loss of earnings, but this is relatively uncommon in governing documents. Where there is no suitable existing authority, the Commission is prepared to provide one if the trustee board can show that payment is in the charity’s interests.
Advantage to the charity: the circumstances in which a trustee board may wish to consider this type of payment are where a potential or existing trustee:
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brings skills or perspective which are valuable to the charity
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cannot afford to serve as a trustee because their employer does not pay for time spent on charity business during working hours
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is self-employed and would lose out financially by carrying out trustee duties in normal business hours.
The same considerations apply as for any payment of a trustee; when applying for authority using the online application form, the trustee board needs to show why it is clearly advantageous to the charity to pay for the services of the person concerned. This will depend on the abilities and experience the person concerned can bring to the trustee board. Details of any especially relevant skills, knowledge or expertise should be provided. In addition, the trustee board needs to consider whether the person could act as an unpaid adviser, or whether it would be possible to recruit a suitable replacement without the need for payment.
The trustee board also needs to show the basis on which the compensation is calculated and explain why this is value for money.
Conditions of authority: if the arrangement is approved, the Commission’s authority will normally impose a condition that reimbursement must be no more than:
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the amount which could be regarded as reasonable payment for the work undertaken on behalf of the charity
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the amount lost by the trustee
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whichever is the lower.
The trustee being compensated must not be a party to the application for authority. The person may have been required to provide information to the trustee boards, but it should be confirmed that the trustee has not otherwise played a part in their decision to make the payment, or in setting the terms and conditions of the payment.
Case study
A leading disability charity wanted to ensure blind and visually impaired people are always able to have a voice on its trustee board. In this case, the charity wished to enable three trustees (including the chair) with valuable specialist skills to contribute regularly to the board, without any financial hardship to themselves as a result. One was self-employed, the other two had to forego fees from other work on several occasions when attending trustee meetings and acting on charity business.
The Commission recognised the contribution made by these trustees, whose expertise ranged from IT support, disability employment services, Access to Work issues, and the needs of blind and visually impaired people. The Commission authorised payment by the charity to reflect their duties on the occasions when they would otherwise lose out. This was based on the charity’s assessment of rates comparable to the chair and non-executive directors of NHS Trusts. As a result, the charity was able to retain the expertise of these 3 trustees, and further empower its users on the trustee board. The charity made the point that it did not wish only to appoint trustees who can afford to be trustees.
7.8.2 Is there any set guideline for the level of loss of earnings to be compensated?
The short answer
There is no strict maximum or ‘set’ figure for compensation. Ultimately, it is for trustee boards to assess the level of payment in the light of the trustee’s contribution to their charity, and whether the charity can readily afford the payment.
In more detail
Because there should be no question of a trustee profiting from trusteeship in these circumstances, the compensation payments should not necessarily be a full replacement of earnings, for example it may not be appropriate for a highly paid trustee to be reimbursed in full for lost salary. Rather, the payment should reflect the reasonable value of the work done on behalf of the charity or, if the loss to the trustee is less than that, the actual loss to the trustee. The payment should, in all cases, be the lower of these two figures. As with other trustee payments, the charity must ensure payment will not harm its ability to carry out its purposes in the interests of its beneficiaries. Charities with a limited income will need to be especially clear they can absorb the cost without any adverse effect on their activities. The Commission would not normally expect a charity in financial difficulty to consider making compensation payments to its trustees.
7.8.3 Are there any risks in making payments for loss of earnings?
The answer
As well as the risks to be managed that are described in section 7.6.2 for paying a trustee, there are other potential disadvantages that charities might need to consider before making loss of earnings payments:
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only trustees who are employed or self-employed can benefit in this way; trustees who are unemployed, but still giving up their free time and energy for the charity, may view this as biased and unfair
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there may be problems where the trustee concerned believes the level of payment should reflect their actual loss of earnings, where the amount lost is more than the reasonable payment for the work carried out for the charity
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although payment may be effective on specific occasions, if it becomes a regular feature there it may remove the incentive to keep any loss of earnings to a minimum – for example by holding meetings outside of the trustees’ usual working hours.
7.8.4 Must there be a written agreement between the charity and the trustee concerned?
The short answer
Not in all cases, but there can be distinct advantages in having one.
In more detail
Where they are likely to be in operation on a regular basis, compensatory arrangements should be recorded in a written agreement, which should be kept as part of the charity’s accounting records. This provides a mechanism for the trustee board to determine and monitor value for money, and otherwise protect the charity’s interests. The Commission does not expect a charity to meet exactly the same conditions for an agreement required when paying a trustee under the Charities Act power for the provision of goods or services (see section 7.4.3). But generally, an effective agreement should address the amount and terms of payment, the level and type of task expected from the trustee, and arrangements for performance review, assessment of continuing need, and the circumstances in which the arrangement will come to an end.
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8. Trustee conflict of interest policy and procedures
There is no regulatory requirement to have a charity trustee conflict of interest declaration form and it's more usual to ask about any conflicts of interest at the beginning of trustee meetings and record these in the minutes. If you do wish to have one, I'd suggest trustees include all actual, potential or apparent conflicts of interest, with agreement to advise of any changes. Entries in your trustee declaration form should record the other entity/person, its/their relationship to the charity trustee and what the conflict is or might be.
Charity Commission Conflict of Interest Policy - Trustee Guidance
The Charity Commission policy guidance identifies 2 common types of conflict of interest: financial conflicts and loyalty conflicts. It requires charity trustees to follow its 3-step approach:
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Identify a conflict of interest.
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Deal with a conflict of interest.
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Record a conflict of interest.
The sample policy below, explains the Commission's guidance and provides a template to create your own.
Charity Commission CC3 (The Essential Trustee: What's Involved) is key guidance that all charity trustees must be aware of. Trustees have 6 main responsibilities. The key one in managing conflicts of interest is the requirement to act in your charity's best interests, because you can't, if you have a conflict.
Your integrity may be such that you potentially could, but charity trustees must not only always act in their charity's best interest, but also be seen to do so. Consequently, you must always manage and record any conflicts of interest.
The charity trustees will make decisions based only on what’s best for the charity. We do not allow personal interests, or the interests of people or organisations connected to trustees to influence these decisions.
There are 2 common types of conflict of interest:
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Financial conflicts - when a trustee, or person or organisation connected to them, could get money or something else of value from a trustee decision. This does not include the payment of expenses.
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Loyalty conflicts - other reasons, a trustee might not be able to make decisions that are best for the charity.
Generally, a potential conflict of interest will occur when a trustee has a connection to another organisation or person that we have a financial, or other working arrangement with, either as:
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Family – his or her partner, child etc, or
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Organisation – as a trustee, board member, member of staff or similar.
Identifying Trustee Conflicts of Interest
Conflict of interest is a standing item on all trustee board and committee agendas; the chairman will remind trustees at the start of each meeting that any interests must be declared.
A record of any professional or personal interest that may make it difficult for a trustee to fulfil their duties impartially, or may create an appearance of impropriety, with any item on the agenda for that day’s meeting is to be noted in the minutes of the meeting. Specifically:
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If a trustee is in any way, directly or indirectly, interested in a proposed transaction or arrangement with the organisation, s/he must declare the nature and extent of that interest to the other trustees
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If a declaration of interest proves to be or becomes inaccurate or incomplete, a further declaration must be made
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Any required declaration of interest must be made before the charity enters the transaction or arrangement.
A declaration is not required in relation to an interest of which the trustee is not aware or where the trustee is not aware of the transaction or arrangement in question. For this purpose, a trustee is treated as being aware of matters of which s/he ought reasonably to be aware.
If a trustee states a conflict-of-interest s/he will normally be requested to leave the meeting while the relevant agenda item is discussed.
Potential Trustee Conflict of Interest
A charity may pay and offer other material benefits, to one or more of its trustees to provide services to the charity, where the trustee board reasonably believes it to be in the charity’s best interests to do so. The services in question must be ones which the charity trustee provides in addition to carrying out normal trustee duties. Any such proposal would be treated on a case for case basis and would only be approved subject to compliance with the Articles of Association and Charity Commission guidance.
Where an individual is not part of the decision-making process, there is no direct conflict of interest. However, where he/she has a relationship with the organisation, or individual trustee/director, the perception could arise that the trustees haven’t acted in the organisation’s best interests, because of this.
Managing Trustee Conflict of Interest
To manage these issues, the Board will ask themselves these kinds of questions:
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Is this the best use we might make of our limited resources?
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If so, might anyone else be able to provide this service?
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If there are others, in terms of cost, quality, availability etc, who would be the best provider?
Recording Charity Trustee Decisions
Conflicts of interest will be recorded in the minutes, together with the key points and decision(s) made, in sufficient detail to enable a reader to understand the issue and the basis on which the decision was made.
OTHER RESOURCES & GUIDANCE
Here are related Charity Commission and other resources. Charity Commission Conflict of Interest Guidance For Trustees: For an introduction to managing charity conflicts of interest, click here for a simple explanation and video. Or for the detailed Charity Commission trustee guidance - Conflicts of interest: a guide for charity trustees (CC29).
Related Charity Commission policy:
Selling/leasing to someone connected with the charity
9. Bullying and harassment policy and procedures
Bullying is repeated acts of unreasonable behaviour directed towards an individual or a group that poses a risk to health and safety. Unreasonable behaviour includes: Victimising behaviour; Humiliating an individual or group; Displaying intimidating gestures or behaviour; Or threatening language or behaviour. It’s also important to note that reasonable management action, such as delivering instructions or addressing performance issues, does not count as bullying. However, only if these actions are carried out with a fair and transparent process. If management action is unreasonable, it may constitute bullying as well. An example of this is when managers are deliberately setting unreasonable timelines for projects or extending the working hours of employees with no valid operational reasons.
10. Social media policy and procedures
This is a good introduction to a UK charity social media policy:
“A comprehensive guide for social media use for MYWORLD’s channels and for individuals using social media in a personal capacity as a representative of MYWORLD.
This policy will be reviewed on an ongoing basis, at least once a year. MYWORLD will amend this policy, following consultations with relevant trustees and staff where appropriate.
This policy is intended for all staff and volunteers of the charity; this includes employees, consultants, trustees and volunteers. Before engaging in social media activity, you must read this policy, which contains guidance that will help you adhere to our standards.”
What is social media?
Social media is the collective term given to web-based tools and applications which enable users to create, share and interact with content (words, images, graphics and video content), as well as network with each other through the sharing of information, opinions, knowledge and common interests. Examples of social media platforms include Facebook, X (formerly known as Twitter), LinkedIn, Instagram, YouTube, Twitch and TikTok.
Why do we use social media and what can we use it for?
Social media is essential to the success of communicating MYWORLD's work. It is important for designated staff and volunteers to participate in social media to engage with our audiences and stakeholders, contribute to relevant conversations, and raise the profile of MYWORLD's work, using the charity’s corporate accounts. Some staff and volunteers may also support the charity’s work using their personal accounts, and many will have social media accounts for personal use.
Building an engaged online community can lead to more significant long-term support and involvement from supporters. Social media guidance from the Charity Commission (September 2023) conveys how social media can be a highly effective way for a charity to engage its audiences and communicate about its work.
Social media helps us to:
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promote our campaigns
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share our news and updates with our audiences
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engage in important conversations with stakeholders
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celebrate our successes
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raise awareness of important issues and challenges
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advertise job and volunteering opportunities
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support our fundraising activities
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increase our membership
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build an online supportive community
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raise our public profile and strengthen our reputation
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react to quickly changing situations and topics.
Why do we need a social media policy?
Social media is a fast-moving online world, where nuance and context can be easily lost. While social media brings the charity to a wide audience, it can also present risks. We want to ensure that all staff and volunteers using social media represent and reflect MYWORLD in the best way possible. It is also important to mitigate risks (such as reputational or legal issues) associated with the use of social media to protect our supporters, staff and volunteers, work and reputation.
While we encourage the use of social media to support our communications strategy or plans, we have important standards, outlined in this policy, which we require everyone to observe and adhere to. The difference between a personal and professional opinion can also be blurred on social media, particularly if you're discussing issues relating to MYWORLD's work. Publication and commentary on social media carry similar obligations and is subject to the same laws as other kinds of publication or commentary in the public domain.
Failure to comply with this policy could expose MYWORLD to reputational damage as well as putting staff, volunteers, services users and members at risk.
Responsibilities and breach of policy
Everyone is responsible for their compliance with this policy.
Participation in social media on behalf of MYWORLD is not a right but an opportunity, so it must be treated seriously and with respect.
Breaches of policy or inappropriate behaviour may incur disciplinary action, depending on the severity of the issue. Please refer to our MYWORLD Policies and Procedures Guide for further information on our processes. Staff and volunteers who are unsure about whether something they propose to do on social media might breach policies should seek advice from Paul Ryan.
Setting out the social media policy
Application
This policy applies to all social media platforms used by staff (including consultants, and freelancers) and volunteers (including trustees) in a professional and personal capacity.
This policy also applies to online blogs, wikis, podcasts, forums, and messaging based apps, such as WhatsApp. Social media can be accessed in various ways, including from a desktop or laptop computer, tablet or smartphone. This policy applies to the use of all such devices.
Internet access and monitoring usage
There are currently no access restrictions to any of our social media sites in the MYWORLD’s office(s), which includes The Corner Hotel and Homeless Link. You can refer to the same policy for guidance on working from home. You are permitted to make reasonable and appropriate use of personal social media activity in line with this policy during your breaks. But usage should not be excessive or interfere with your work.
Point of contact for social media and authority to post on MYWORLD's social media accounts
Our UK Media Manager is responsible for the day-to-day publishing, monitoring and management of our social media channels. If you have questions about any aspect of these channels, please speak to the UK Media Manager. No other staff member or volunteer is permitted to post content on MYWORLD's official channels without the permission of the UK Media Manager
Which social media channels do we use?
MYWORLD and CAFÉ ART use the following social media channels:
Facebook @cafeartforhomelessartists (5,000+ followers) and @mwphotoprojects (186 followers)
X Café Art @cafeartuk (3,514 followers) and MyWorld @MWPProjects (60 followers)
Instagram @cafeartuk (1,862 followers) and @myworldcreativeprojects (188 followers)
YouTube @cafeartuk (110 subscribers) and @myworldcreativeprojects (15 subscribers)
LinkedIn CAFÉ ART (158 followers) and MyWorld Creative Projects (30 followers)
Facebook for Café Art: 70% women, 2,000 in UK, 650 in USA, 242 in Brazil, 202 in Canada. Top cities: London, São Paulo, Vancouver, Sydney
Policy ownership
The CEO is responsible for authoring and updating this document. The policy must be approved by the trustees and reviewed every two years, unless a significant change requires the organisation to check the policy before the next review date. All staff and volunteers will be notified of updates.
Rules for use. I will:
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not insult, harass, bully or intimidate individuals or organisations
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respond to others’ opinions respectfully and professionally
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not do anything that breaches my terms of employment/voluntary role
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acknowledge and correct mistakes promptly using provided guidance
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disclose conflicts of interest where I am able
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not knowingly post inaccurate information
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link to online references and original source materials directly
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be considerate, kind and fair
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always ensure my activity does no harm to the organisation or to others
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champion MYWORLD and its services.
Using MYWORLD's social media channels — appropriate conduct
1. Know our social media guardians
The CEO is responsible for setting up and managing MYWORLD's social media channels. The CEO has overall ownership of these accounts and only those authorised to do so by the CEO will have access to these accounts.
The CEO will uphold best practices for channel security with secure passwords that regularly change. Never give out the passwords for our channels without express permission from the CEO.
2. Be an ambassador for our brand
Staff and volunteers must ensure they reflect MYWORLD’s values in what they post and use our tone of voice. Our brand guidelines set out our style that all staff and volunteers should refer to when posting content on MYWORLD's social media channels. Please note only the CEO is permitted to respond to comments on our social media posts on behalf of the organisation. All posts and comments should be attributed to the charity and not an individual. In special cases it may be appropriate for a staff member or volunteer to make an individual comment as themselves, but this should be under the supervision, and with the approval, of the CEO.
3. Always pause and think before posting
When posting from MYWORLD's social media accounts, you must respond to comments in the voice of our charity and not allow your own personal opinions to influence responses. Staff and volunteers must not reveal their personal opinions via our accounts by 'liking', 'sharing' or 'reposting' as MYWORLD or CAFÉ ART, unless it is clear that you are doing so as an individual staff member or volunteer as part of an approach agreed with the CEO (e.g. as part of a ‘takeover’ of the charity’s account). If you are in doubt about MYWORLD's position on a particular issue, please speak to the CEO.
4. Ensure brand consistency
Staff or volunteers must not create or manage any other social media channels, groups or pages on behalf of MYWORLD without express permission from the CEO and training. This is to ensure brand consistency for users and the appropriate safeguarding and monitoring processes are in place.
5. Remember the bigger picture and focus on the benefit
Staff and volunteers must make sure that all social media content has a purpose and a benefit for MYWORLD to further our charitable purposes (either directly or indirectly, by engaging stakeholders and building our brand using our strategy). All content must accurately reflect MYWORLD's agreed position.
6. Bring value to our audience(s)
Those responsible for the management of our social media accounts should answer questions as swiftly as possible to help and engage with our service users and supporters.
7. Seek permission to share
If staff or volunteers outside of their project wish to contribute content for social media, whether non-paid for or paid for advertising, they should obtain guidance and permission from the CEO.
8. Obtain consent
Staff and volunteers must not post content about supporters, service users or partners without their, or their guardian’s, express permission. If staff or and volunteers are sharing information about supporters, service users or third party organisations, this content should be clearly labelled so our audiences know it has not come directly from MYWORLD. If using interviews, videos or photos that clearly identify a child or young person, staff and volunteers must ensure they have the consent of a parent or guardian before using them on social media.
9. Put safety first
It can be challenging working on social media and there may be times where staff or volunteers could be subject to unpleasant or abusive comments directed at the charity, our work or people. We encourage everyone who is on social media on behalf of the charity to be aware of our safeguarding and wellbeing practices to deal with online abuse and consult with the CEO where necessary.
It is also vital that MYWORLD does not encourage others to risk their personal safety or that of others, to gather materials in pursuit of social media engagement. For example, a video of a stunt or visiting an unsafe location.
10. Stick to the law
Staff and volunteers must not encourage people to break the law to supply material for social media, such as using unauthorised video footage. All relevant rights for usage must be obtained before publishing material.
11. Remain politically neutral
MYWORLD is not associated with any political organisation or have any affiliation with or links to political parties. We can express views where appropriate on policies that impact our work and service users, but it is essential that MYWORLD remains, and is seen to be, politically neutral.
We cannot endorse a political party or candidate. We must carefully manage the risk that we are perceived to have any party-political bias and should carefully consider any posts which might be perceived as such, for example, posts which talk about individual politicians or parties rather than policies.
12. Check facts and be honest
Staff and volunteers should not automatically assume that material that’s shared or included in any post is accurate and should take reasonable steps where necessary to seek verification – for example, by checking data/statistics and being wary of photo manipulation. If you've made a mistake, don't be afraid to admit it. But think first about how to manage any risk to the charity and its brand in doing so by consulting with the CEO to craft the response.
13. Seek advice for complaints
If a complaint is made on MYWORLD's social media channels, staff and volunteers should seek advice from the CEO before responding. If they are not available, then staff and volunteers should speak to the chairman of MYWORLD.
14. Know what to do in a crisis
Sometimes issues can arise on social media which can escalate into a crisis situation because they are sensitive or risk serious damage to the charity's reputation.
The nature of social media means that complaints are visible and can escalate quickly. Not acting can be detrimental to the charity or our people. The CEO regularly monitors our social media spaces for mentions of MYWORLD so we can catch any issues or problems early. If there is an issue that could develop or has already developed into a crisis situation, the CEO will do the following: tell the trustees and refer to Charity Commission serious incident reporting guidance.
If any staff or volunteers outside of MYWORLD becomes aware of any comments online that they think have the potential to escalate into a crisis, whether on MYWORLD's social media channels or elsewhere, they should speak to the CEO immediately. It is the responsibility of all staff and volunteers to report complaints or comments that could escalate into a crisis or have serious implications for the charity. Only the CEO is permitted to amend or delete content in a crisis.
See further guidance from CharityComms regarding crisis communications and best practice.
15. Timings, schedules and rotas
Currently this is done as needed seven days a week.
16. Use AI appropriately
AI can be a valuable tool that can support our communications activities. However, staff and volunteers must ensure You must seek permission from the CEO before using AI and only use approved AI tools and processes.
17. Handover ownership if your role changes
You must hand over ownership of the group/page/account you manage to another appropriate staff member (or volunteer) if you change roles or if you leave MYWORLD.
Use of personal social media accounts — appropriate conduct
Personal social media use by staff and volunteers can sometimes be attributed to the charity or bring other risks for the charity or individual staff or volunteers. This policy does not intend to inhibit personal use of social media, but instead flags up those areas in which risks or conflicts might arise. MYWORLD staff and volunteers are expected to behave appropriately, and in ways that are considerate of MYWORLD's values and policies, both online and in real life.
1. Separate your personal views
Be aware that any information you make public could affect how people perceive MYWORLD. You must make it clear when you are speaking for yourself and not on behalf of MYWORLD. If you are using your personal social media accounts to promote and talk about MYWORLD's work, you must use a disclaimer such as: “Views are my own” or "The views expressed on this site are my own and don't necessarily represent MYWORLD's positions, policies or opinions."
2. Take care when publishing personal views (particularly trustees and senior staff)
Those in senior management including trustees and public-facing or specialist roles where they are well known in their field of expertise, must take particular care as personal views published may be misunderstood as expressing MYWORLD's view.
For senior roles, we expect you to take additional steps, such as:
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being aware of your duties and responsibilities
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consulting your charity’s messaging and crisis plans, being particularly cautious in how your communications as a leading figure for [charity name] may be interpreted
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avoiding posting any material which might be construed as contrary or conflicting with to the charity’s charitable mission or work
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ensuring you do not refer to the charity by name on your personal accounts on social media (e.g. ‘CEO at a homeless charity’ rather than the charity’s name), unless you are using an account as if it were the charity’s own social media account (in line with the first section of the policy).
3. Discuss risks and conflicts of interest
Staff and trustees who have a personal blog, social media profile or website which indicates in any way that they work at MYWORLD should discuss any potential risk or conflicts of interest with their line manager and the [team name]. Similarly, staff or trustees who want to start blogging and wish to say that they work for MYWORLD should discuss any potential risk or conflicts of interest with their line manager and the CEO.
4. Protect your personal reputation
Think about your personal reputation as well as the charity's. Express your opinions and deal with differences of opinion respectfully. Don't insult people or treat them badly. Passionate discussions and debates are fine, but you should always be respectful of others and their opinions. Be the first to correct your own mistakes. Remember that if you have a public profile with the charity, your personal social media accounts could be looked at by critics of the charity, and bear this in mind when posting.
5. Use your common sense and good judgement
Be aware of your association with MYWORLD and ensure your profile and related content is consistent with how you wish to present yourself to the general public, colleagues, partners and funders.
6. Don’t approach VIPs directly
MYWORLD works with several high-profile organisations and individuals. Please don't approach high profile people or organisations from your personal social media accounts to ask them to support the charity, as this could hinder any potential relationships that are being managed by Paul Ryan. This includes asking for reposts about the charity. If you have any information about high profile people or organisations that have a connection to our cause, or if there is someone who you would like to support the charity, please speak to the [team name] to share the details.
7. Refer press enquiries
If a staff member or volunteer is contacted by the press about their social media posts that relate to [charity name], they should talk to the [team name or job title] immediately and under no circumstances respond directly.
8. Keep your political activity separate from the charity
When representing [charity name], staff and volunteers are expected to uphold [charity name]'s positioning [add link to useful documentation or add a note here]. Staff and volunteers who are politically active in their spare time need to be clear in separating their personal political identity from [charity name] and understand and avoid potential risks and conflicts of interest. Staff should also inform their line manager and the [team name] about any such political activity, and trustees should inform the Chair. As set out in point two above, senior staff and trustees should take particular care.
9. Protect your privacy
Be careful with your privacy online and be cautious when sharing personal information. Remember that a simple ‘like’ can draw attention to your personal accounts. What you publish is widely accessible and could be around for a long time, so do consider the content, and your privacy, carefully.
All staff and volunteers who wish to engage with any of MYWORLD's social media platforms are strongly advised to ensure that they set the privacy levels of their personal sites as strictly as they can and to opt out of public listings on social networking sites to protect their own privacy. All staff and volunteers should keep their passwords confidential and change them often. Staff should not ‘friend’ or personally connect with service users / donors / volunteers via social media unless explicit permission is given by the CEO.
In their own interests, staff and volunteers should be aware of the dangers of putting personal information onto social networking sites, such as addresses, home and mobile phone numbers.
10. Help us to raise our profile (where appropriate)
We encourage staff and volunteers to share posts that we have issued. When online in a personal capacity, you might also see opportunities to comment on or support MYWORLD and the work we do. Where appropriate and using the guidelines within this policy (and taking into consideration the information above), we encourage staff and volunteers to do this as it helps users connect to us and raises our profile.
However, please take care to think about the reputation of the charity. If your personal social media account is not professional or otherwise appropriate for our audiences, please do not use it to amplify or promote the charity, as to do so brings risks both to you personally and to the charity. Similarly, if the content is controversial or misrepresented, please highlight this to the CEO who will respond as appropriate.
11. Avoid logos or trademarks
Never use MYWORLD's logos or trademarks unless approved to do so. Permission to use logos must be requested from the CEO and any content created must adhere to our brand guidelines. If permission is granted, content must be approved by the CEO before publishing.
12. Staying safe online
It can be challenging working on social media and there may be times where staff and volunteers could be subject to unpleasant or abusive comments directed at the charity, our work or people. We encourage everyone who is on social media to be aware of our safeguarding and wellbeing practices to deal with online abuse and consult with the CEO where necessary.
Staff and volunteers should be vigilant regarding suspicious content or links and must not reveal personal, confidential or sensitive information about themselves, other staff members, volunteers or supporters of MYWORLD. Staff and volunteers should be wary of fake accounts that may claim to be MYWORLD and should immediately notify the CEO.
Care must also be taken to ensure that any links to external sites from our social media accounts are appropriate and safe.
Please consult our relevant policies and procedures for the safeguarding of our staff and volunteers.
Please consult our relevant policies and procedures for the safety and safeguarding of our supporters.
Further guidelines: using social media in a professional and personal capacity
Defamation
Defamation is when a false statement that is damaging to a person's reputation is published in print (such as in media publications) or online (such as Instagram Story, Facebook Live, Snapchat post). Whether staff or volunteers are posting content on social media as part of their job or in a personal capacity, they should not bring MYWORLD into disrepute by making defamatory comments about individuals or other organisations or groups.
Copyright law
It is critical that all staff or volunteers abide by the laws governing copyright, under the Copyright, Designs and Patents Act 1988, when representing the charity. Never use or adapt someone else's images or written content without permission. Failing to acknowledge the source/author/resource citation, where permission has been given to reproduce content, is also considered a breach of copyright.
Confidentiality
Any communications that staff and volunteers make must not breach confidentiality. For example, information meant for internal use only or information that MYWORLD is not ready to disclose yet. For example, a news story that is embargoed for a particular date, or information from people who the charity has worked with which is private.
Discrimination and harassment
Staff and volunteers should not post content that could be considered discriminatory against, or bullying or harassment of, any individual, on either an official MYWORLD social media channel or a personal account. For example:
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making offensive or derogatory comments relating to sex, gender, race, disability, sexual orientation, age, religion or belief
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using social media to bully another individual
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Posting images that are discriminatory or offensive or links to such content.
Accessibility
In line with MYWORLD’s equity, diversity and inclusion policy, we endeavour to ensure our social media is as accessible as possible. This includes:
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using plain English, accessible fonts and avoiding small text sizes
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using contrasting colours
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using subtitles where appropriate
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using alt text for videos and images
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explaining text contained in an image in the copy that accompanies it
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following our brand guidelines which have been designed to be accessible.
You can view more guidance on the government website: planning, creative and publishing accessible social media campaigns.
For accessibility best practices, visit the CharityComms resource: Accessible communication - a starting point to foster more inclusive comms.
The Lobbying Act
Charities are legally allowed to campaign to bring about a change in policy or law to further their organisational purpose but can never be party political. In most cases, spending on charity campaigns that are in accordance with charity law will not be regulated under electoral law (often known as the ‘Lobbying Act’[1]).
Under the Lobbying Act, organisations (including charities which spend more than £10,000 across the UK on ‘regulated activity’ during the regulated period need to register with the Electoral Commission within the outlined windows for elections.
Regulated activity is any activity which could reasonably be seen as intended to influence people's voting choice, either for parties or candidates (which a charity could never do) or for categories of candidates (e.g. female candidates, or candidates who support Net Zero). During these periods, all campaigning activity will be reviewed by the CEO.
Use of social media in the recruitment process
Recruitment should be carried out in accordance with the recruitment policy, and associated procedures and guidelines. Any advertising of vacancies should be done through HR and the CEO and promoted through approved channels.
There should be no systematic or routine checking of candidates' online social media activities during the recruitment process, as conducting these searches might lead to a presumption that an applicant's protected characteristics, such as religious beliefs or sexual orientation, played a part in a recruitment decision. This is in line with MYWORLD's equal opportunities policy.
Use of social media to support fundraising activities
Our social media platforms play a key role in our fundraising efforts and engaging with our donors. Before using our social media channels for fundraising purposes, staff and volunteers should read our fundraising policy and adhere to The Code of Fundraising Practices.
Protection and intervention
The responsibility for measures of protection and intervention lies first with the social networking site itself. Different social networking sites offer different models of interventions in different areas. For more information, refer to the guidance available on the social networking site itself. For example, Facebook. However, if a staff member or volunteer considers that a person/people is/are at risk of harm, they should report this to the CEO immediately.
Under 18s and vulnerable people
Young and vulnerable people face risks when using social networking sites. They may be at risk of being bullied, publishing sensitive and personal information on their profiles, or from becoming targets for online grooming or radicalisation. Where known, when communicating with vulnerable or young people under 18-years-old via social media, staff and volunteers should ensure the online relationship with MYWORLD follows the same rules as offline.
Staff and volunteers should be aware that children under the age of 13 should not be encouraged to create their own personal social media accounts or engage with others and are not legally allowed to use social media channels such as Facebook, Instagram or X.
Staff and volunteers should ensure that vulnerable and young people have been made aware of the risks of communicating and sharing information online, and given guidance on security and privacy settings as necessary. Staff and volunteers should also ensure that the site itself is suitable for the vulnerable or young person and MYWORLD content and other content is appropriate for them. Please refer to our safeguarding policy.
All staff members and volunteers have a responsibility to do everything possible to ensure that vulnerable and young people are kept safe from harm. If you come across anything online that could mean someone is at risk, you should follow MYWORLD’s safeguarding policies.
The Online Safety Act 2003 has introduced measures to ensure children are protected online.
Engaging on emotive topics
MYWORLD may be involved in issues that provoke strong emotions. The emotive content we share via our social media channels can engage our audiences and help us achieve our communications goals. However, it is important to plan appropriately and consider potential reputational risks to the charity. For more information, visit the government resource called charities and social media.
Public Interest Disclosure
Under the Public Interest Disclosure Act 1998, if a staff member releases information through MYWORLD's social media channels that is considered to be in the interest of the public, MYWORLD's whistleblowing policy must be initiated before any further action is taken.
Please note: While all attempts have been made to cover an extensive range of situations, it is possible that this policy may not cover all eventualities. There may be times when professional judgements are made in situations not covered by this document, or which directly contravene the standards outlined in this document.
It is expected that in these circumstances staff will always consult with the CEO where possible or advise the team of the justification for any such action already taken or proposed.
Further external guidance
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The Charity Commission guidance for charities on social media
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The Charity Commission checklist for developing a social media policy
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National Cyber Security Centre’s guidance on social media and how to use it safely
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National Cyber Security Centre’s guidance on protecting your published content
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The Charity Commission guidance on campaigning and political activity guidance for charities
11. Engaging external speakers at charity events policy and procedures
Procedures
Step 1: Speaker Selection
1.MYWORLD will select speakers, including our ambassadors, for charity events based on their relevance to the event's purpose and the potential impact of their involvement.
2. Ambassadors will be invited to speak at events where their expertise or experiences align with the event's goals.
Step 2: Speaker Invitation
1. MYWORLD will formally invite selected speakers, outlining the event's date, purpose, and expectations.
2. Invitations will include a clear request for confirmation and availability.
Step 3: Speaker Agreement
1. Upon acceptance, MYWORLD will enter into an agreement with the speaker or ambassador, detailing expectations, remuneration (if applicable), and any other relevant terms.
2. The agreement will outline the nature of the event, the speaker's role, and their responsibilities.
Step 4: Event Management
1. MYWORLD will provide clear event guidelines to speakers, ensuring they understand the event's objectives and expected conduct.
2. Speakers, including ambassadors, will be expected to act in a manner that aligns with MYWORLD's values and charity mission.
3. Speakers must agree not to include content that could lead to inciting hatred, unrest, offence, or political bias.
4. Speakers, due to the nature of our work with young people, should act as role models and safeguard young people. They should not encourage unhealthy lifestyles or conduct, including alcohol, drugs, or gambling.
Step 5: Feedback and Evaluation
1. MYWORLD will solicit feedback from event attendees regarding the performance of external speakers, including ambassadors.
2. Feedback will be considered for future event planning and speaker selection.
Step 6: Data Protection
1. MYWORLD will handle any personal data of external speakers in compliance with data protection laws.
2. Consent for the use of personal data will be obtained when required.
Step 7: Expenses and Remuneration
1. Expenses and remuneration for external speakers, if applicable, will be processed in line with MYWORLD's Trustee Expenses Policy.
Step 8: Review and Compliance
1. This policy will be reviewed periodically to ensure its effectiveness and alignment with the UK Charity Commission's guidance.
Guidance Statement:
Speakers and ambassadors engaged by MYWORLD are expected to uphold the principles of promoting positive values, respect, and social responsibility. Content presented at MYWORLD charity events should not incite hatred, unrest, offense, or political bias or bring the work of the Foundation into disrepute. MYWORLD reserves the right to address any breaches of this guideline to ensure the integrity of its events and mission is maintained.
Speakers should at all times conduct themselves as role models, safeguarding young people, and refraining from promoting unhealthy lifestyles or behaviours, including alcohol, drugs, or gambling.
[1] Set out initially in the Political Parties, Elections and Referendums Act 2000, as amended by the Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014 and the Elections Act 2022.