TRUSTEE TRAINING

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TRUSTEE TRAINING Powered By Docstoc
					A training module for Ministers and Elders
               March, 2009
        Created by Fergus Urquhart
 Synod Trust Officer and Office Manager
        About
   Fergus Urquhart
                                        TRAINING OBJECTIVES
•Trust Officer and Office Manager
since 23rd July, 2007
                                       Broad overview of trusts
• Elder at St Andrew’s United
                                       Rôle of Trustees
Reformed Church, Ealing since
2000                                   Trusts & Local Churches
•Trustee of St Andrew’s Church         What to do next?
Centre, Ealing since inception in
2001                                   Notes & Questionnaire
•This training module was
presented to Synod Executive in
                                       Ongoing consultation
February, 2008
                               WHAT IS A TRUST?

          These are all my worldly goods I wish to bestow upon your church




                               I am, therefore, a SETTLOR
Until I die, then, I’m going
to give the money to URC
Thames North Trust
(TRUSTEE) to hold the                     But we don’t want to give you that!
money in trust for you                    At least, not until you’ve fulfilled certain
until the condition I have                conditions. E.G I have to die first! But you will
laid down for the transfer                be the BENEFICIARY
of the money has been
fulfilled.
    1987 hague convention
              In law applicable to Trusts

                      DEFINITION

“….the legal relationship created – „inter vivos‟ (between
 living persons) OR on death – by a person (SETTLOR)
  when assets have been placed under the control of a
   TRUSTEE for the benefit of a BENEFICIARY OR for a
                    specific purpose”

       So, that’s it in a nutshell. End of training?!

                     Not quite yet….. Let’s investigate some of the
                         implications of being a Trustee first!!
           CHARACTERISTICS OF A TRUSTEE

• Assets do NOT constitute part of the Trustee’s estate
Remember, the Church, the BENEFICIARY did not hold
onto the cash I wanted to bequeath them.

• Title/Legal Ownership is transferred by the SETTLOR
(me) into the name of the TRUSTEES.

• Beneficial ownership vested in those on whose behalf
the assets are held in trust (the BENEFICIARY, the
church)

•Hague Convention on Trustees who hold:

“power and duty in respect of which they are
accountable to manage, employ or dispose of the assets
in accordance with the terms of the Trust and special
duties imposed upon them.”

          N.B. “DUTY” and “ACCOUNTABLE.”
KNOW YOUR CHARITY DOCUMENT

• It will tell you in legal terms about
      your liability as a Trustee

    •Do YOU and your FELLOW
  TRUSTEES tick all the following
             boxes?
              You should become a Charity Trustee ONLY if you

• are prepared to give the necessary time and effort to management of the
charity

• can help the charity achieve its aims through your expertise or commitment

• understand and accept trusteeship carries legal duties & responsibilities

                      You CANNOT be a charity Trustee if

• you are under 18 years of age

• you are disqualified because of bankruptcy or conviction for an offence of
dishonesty or deception (Charities Act 1993 Section 32)
                  Before you first become a Trustee you SHOULD


• study the charity’s Governing Documents to learn about its purposes and
administrative procedures

• ask your fellow trustees to give you full details to assist you to familiarise
yourself with the charity’s property, investments and income

• study recent accounts and minutes of meetings to learn about the charity’s
finances and policies

Charities:
             Do you have a job description for your Trustees?
             Do you have training for new or potential Trustees?
             Do you provide welcome packs for new or potential Trustees?
             If you do, what’s in it? Maybe, the following documents:

                  Accounts, budgets with comprehensive explanations on them,
                  back minutes to show the type of decisions made, a list of
                  major assets. You may think of more yourselves
Principles of Trusteeship


• Trustee Integrity

• Leadership

• Control

• High Performance

• Review and Renewal

• Delegation

• Openness
TRUSTEE INTEGRITY
       • Acting in good faith

 • Ensuring charity pursues its aims

 • Use assets and powers vested in
     you to pursue those aims

 • ALWAYS act in the interest of the
        BENEFICIARIES

     • YOU MUST ALWAYS ACT
  PERSONALLY I.E. TAKE ACTIVE
PART TOWARDS THE ABOVE AIMS AT
           ALL TIMES

    • Avoid conflicts of interest

• Duty of Care towards everything at
              all times
RESPONSIBILITIES OF TRUSTEESHIP




            • LEGAL



        • MANAGERIAL



          • FINANCIAL
               LEGAL RESPONSIBILITIES
1. Charities Acts - Regulatory Capacity of Charity
   Commission

2.   As URC Thames North Trust (company limited
     by guarantee) – Laws governing Bodies
     Corporate

3. Such limited legislation as exists regarding Trusts

4. Civil Law

5. Health & Safety legislation

6. Insolvency legislation

7. Anti Money Laundering legislation

8. Employment Law

9. Equality legislation
                                      BEWARE!!!!!!!!
                           LEGAL ISSUES FOR TRUSTEES COULD
                           SERIOUSLY DAMAGE YOUR WEALTH!!!!!

• Charities Act 2006 regarding charities proving suitable charitiable purpose AND suitably for
Public Benefit.

• Keep up-to-date – Sample publications to make it easier e.g. “Governance Matters” from the
Governance Hub and the Charity Finance Year Book. A list of publications is issued
separately under “downloadable handouts.”

• Trustees acting outside powers = BREACH OF TRUST

• Civil remedy – PERSONAL LIABILITY TO REIMBURSE ANY LOSS/EXPENDITURE. For as
long as you, individually, are a trustee, even retrospectively to the period you acted in that
capacity

• Compliance – Governing documents to be kept up-to-date. They are not immutable and it is
permissible to allow them to evolve with the development of the charity

             DON‟T LET THAT STOP YOU BECOMING A TRUSTEE, THOUGH!!!!!!!!

               IN THE END OF THE DAY, ALL THE ABOVE SAYS IS TO UTILISE


                              COMMON SENSE
RELATED ISSUES TO BEAR IN MIND



1. Conf lict of Interest

2. Wrongful/fraudulent trading

3. Political activities


4. Disagreeing with fellow
   Trustees/Decision-making

5. Grey Areas - Always refer to
   Charity Commission for guidance.
               CONFLICTS OF INTEREST



As individuals, we all function in many capacities; our
“day jobs,” our interests in sport, the arts, our passions
– human rights or whatever, other trusteeships or
directorships.

Maybe an employee of a Local Authority, say, in the
planning office, will be approached to become an
Elder/ Trustee of your church. Will he have a conf lict
of interest when you, the local church seek planning
permission for a rebuilding project?

Should we keep a record f one another’s interests to
ensure we avoid conf licts of interest?
            Disagreeing with fellow Trustees’ Decision-making


                 • A majority decision binds the majority

 •YOU are bound by such majority decisions even if you were absent from
               the meeting when the decision was taken

If voting AGAINST a decision

                     • Make sure your vote is minuted

  • If disagree seriously e.g. you perceive a Breach of Trust, say, spending
       resources on something outside the Trust’s Church’s objectives
                            – consider resignation
      MANAGERIAL RESPONSIBILITY OF TRUSTEES

• Working effectively as a Board
• Working parties/Sub-committees to make “many hands
make light work” – make sure to give them written TERMS
OF REFERENCE
• Accountability externally – regulators, legal obligations,
suppliers, outsourcers
• Staff relations from recruitment to dismissal. Do Trustees
need training in effective interviewing techniques, for
example?
• Monitoring all elements of charity
• Constant review and, wherever necessary, re-evaluation of
policies and/or procedures – including providing training
modules for Trustees
• Managing property and land
• Public relations – Trustee training required for those who
speak to the press
•Relationships with those for whom we act in Trust
•Relationships with like-minded bodies
  MANAGERIAL RESPONSIBILITY


              =


DUTY OF CARE TO ALL WITH WHOM
       WE ARE INVOLVED
      FINANCIAL RESPONSIBILITIES

               • Accounting

     • Budgeting and Financial Control

          •Managing investments

                • Insurance

     •Allocation to and use of Reserves

                 • Trading

               •Fundraising

• Understanding the charity’s Balance Sheet
(another potential trustee training module?)
FINANCIAL RESPONSIBILITIES


            =


      DUTY OF CARE

            +

        PRUDENCE
            MAKING MEETINGS
                 WORK
• PREPARATION

    Read the papers
    Think about the issues
    Make notes on points to raise
• WORK
    Join in discussions
    Put forward constructive ideas
    Maintain interest in discussions
    Look for areas of common agreement
 WHERE IS YOUR TEAM ON THE PROGRESS
                   CHART?
• FORMING
  Collection of individuals
  Forming identities within team
• STORMING
  Behaviour/leadership of group being
  challenged
• NORMING
   Group establishing norms & how it will
   work
• PERFORMING
   Group is productive
              IT’S ALL ABOUT

               OPENNESS
                  +
            ACCOUNTABILITY
                  +
             COMMON SENSE
Accountability to the beneficiary, to one another, to the wider

           organisation, regulators and authorities
  PLEASE, REMEMBER TO PICK UP THE FOLLOWING
                 HANDOUTS

(See separate file marked “Trustee Handouts” on website)

• “Quick and dirty” assessment to get you started “Board
Assessment.
• Checklists for future action/discussion
• Trustee sample person specifications and officer job
descriptions
• Board Leadership
• The Board in control
• “Governance Matters” Issue 1 – Introduction
• Prime site/Publication Recommendations for further
reading and research.

				
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