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The CTI(S) Act (in section 106) defines Charity Trustees as “the persons having the general control and management of the administration of a charity”. A Charity Trustee of any type of charity is part of the controlling body responsible for its overall control, strategy and, except perhaps where there are senior managers employed by the charity, its management too.
That controlling body may be called a number of different labels, including:
- Board of Directors
- Board of Trustees
- Board of Governors
- Management Committee
- Executive Committee
but in this Fact Sheet is referred to collectively as ‘the Board of Trustees’ and individually as ‘the Charity Trustee(s)’.
Even in the case of a guarantee company, it is usual to call the Board a 'Board of Trustees'. In this case the Charity Trustees are actually Directors of a limited company, but the label 'Director' is usually avoided owing to its connotations of salary, bonus and other profit schemes, which are inappropriate to the charity world. The position can be further confused by the practice of some charities who call their principal employee “the Director”, in preference to “Chief Executive” or other label. However, it is important to remember that Trustees of a guarantee company, whatever their label, are also Directors and have responsibilities imposedupon them by the Companies Acts.
Although Trustees acting under a Deed of Trust and the Management Committee of an unincorporated association do not have these statutory responsibilities as Directors, the CTI(S) Act makes no distinction and expects the same level of understanding, direction and responsibility from all Charity Trustees and it is on this basis that the remainder of this Fact Sheet explains the role and responsibilities of the Charity Trustee.
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Fact Sheets