NATIONAL UNION OF STUDENTSTRUSTEE ROLE AND RESPONSIBILITIES NOVEMBER 2016

DAN FRANCISGOVERNANCE CONSULTANT, NCVO

WWW.NCVO.ORG.UK

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• Context of trusteeship and sector

• Role of a trustee

• Legal duties

• Liability and legal forms

• Putting it into practice

WHAT WE WILL COVER…

• What’s your name?

• Why you became a trustee or first became involved in your SU?

• What you would like to get out of the day

WHO ARE YOU?

CHARITY INCOME

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CURRENT CHALLENGES

CHARITY GOVERNANCE IN THE NEWS

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WHO ARE THE TRUSTEES?

The persons having the general control and management of the administration of a charity.

Section 177 of the Charities Act 2011

• Voting members of the governing body

• Ultimate legal responsibility for the charity

• A collective group of decision makers

• Elected or appointed in accordance with the charity’s governing document

• Operate within a formal set of rules

• In a charitable company, company directors and trustees are the same people

• Trustees often delegate day to day tasks to staff and/or volunteers

• Almost always unpaid

WHO ARE TRUSTEES?

WHAT DOES THE TERM CHARITY MEAN?

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• To be a charity an organisation must be set up with purposes which are exclusively charitable

• What constitutes a charitable purpose is defined in the Charities Act 2011

• In order to be a charity your purposes must meet the “public benefit requirement”

• We prove this by requiring charities to report annually to the regulator on how they have deliver their purpose

• This is all about trust and confidence

• Requirement to act in the interests of your students

• Exempt charities until 2006 Charities Act

• Board make up in SU approx. 45% Officers, 25% Students, 30% Lay trustees

• All trustees have equal responsibility

Why do Students’ Unions have this board composition?

What challenges can arise as a result?

STUDENTS’ UNIONS AS CHARITIES

KEY LEGAL DUTIESCC3 THE ESSENTIAL TRUSTEE

For the legal duty think about…

• What trustees can do to ensure they meet this legal duty?

and

• Times you think this legal duty may be challenged and how trustees should deal with this?

CHARITY STRUCTURES AND TRUSTEE LIABILITY

COMPARISON OF LEGAL FORMS

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• Governance liabilities

e.g. breach of duty under charity law

• Operational liabilities

e.g. claims from third parties

• Failure to comply with relevant statutory requirements

e.g. health & safety, PAYE, trade descriptions, data protection

TRUSTEE PERSONAL LIABILITY

• Incorporation (CIO; company limited by guarantee) but does not offer complete protection

• Plus –• trustee indemnity insurance• good management practices• clear roles and responsibilities• records of decisions taken• provisions in governing document• contingency funds• professional advice• board development• risk management

TRUSTEE LIABILITY – PROTECTION!

CHARITY COMMISSION’S VIEW

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The Charity Commission expects trustees to take their responsibilities seriously... The Commission recognises that most trustees are volunteers who sometimes make honest mistakes. Trustees are not expected to be perfect – they are expected to do their best to comply with their duties. Charity law generally protects trustees who have acted honestly and reasonably.

Charity Commission (2015) CC3: The essential trustee: What you need to know, what you need to do

TRUSTEE DUTIES – CASE STUDIES

Read the scenarios and as a group decide how you would advise the author of the letter

Be prepared to feedback

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INFORMATION AND SUPPORT

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• NCVO Consultancy: www.ncvo.org.uk/training-and-events/consultancy

• High Performance Board training: https://www.ncvo.org.uk/training-and-events/training

• NCVO Annual Trustee Conference: https://www.ncvo.org.uk/training-and-events/trustee-conference

• Charity Commission: www.gov.uk/government/organisations/charity-commission

• Other infrastructure bodies e.g. ACEVO, Small Charities Coalition, WCVA

• Local infrastructure bodies: Council for Voluntary Service/Voluntary Action, Volunteer Centre

USEFUL RESOURCES

NCVO publications

www.ncvo.org.uk/practical-support/publications

• The Good Trustee Guide, 6th ed., NCVO 2015

• Good governance: a practical guide for trustees, chairs and CEOs

UK Civil Society Almanac 2016: https://data.ncvo.org.uk/category/almanac/voluntary-sector/sector-overview/

NCVO: www.ncvo.org.uk, knowhownonprofit.org andhttps://knowhownonprofit.org/studyzone

Good Governance: A Code for the Voluntary and Community Sector www.governancecode.org

Charity Commission guidance: www.gov.uk/government/organisations/charity-commission

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THANK YOU

Dan.francis@ncvo.org.uk

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