; 3. Duties of Charity Trustees
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3. Duties of Charity Trustees


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									                           Voluntary Action Orkney

                                                Duties of Charity Trustees

      Members of a committee or Board of an organisation which is a
      registered charity, are called Charity Trustees. Their duties are
      outlined in the Charities and Trustee Investment (Scotland) Act
      2005 and on the OSCR website: www.oscr.org.uk. The following is a

Act in the interest of the charity
Responsibilities                                   Examples of good practice

Put interests of charity first                     Charity trustees declare any conflict of
                                                   interest and do not take part in any
Declare any conflict of interest and do not        discussion or decision on the matter
take part in any discussion or decision if there
is an irreconcilable conflict of interest          Adopt a charity trustee “Code of Conduct”
between the charity trustee and any person         which includes commitment to upholding
responsible for their appointment                  aims of the charity and guidelines on conflicts
                                                   of interest
Manage conflict of interest to fellow charity
trustees and, take steps to remove charity         Potential charity trustees to confirm they are
trustees in serious or persistent breach of        not disqualified
their duties
                                                   New charity trustees to declare any interests
Ensure any remuneration of charity trustees        that may give rise to conflicts of interest
complies with the conditions set out in the
Act                                                Maintain up-to-date register of charity
                                                   trustee’s interests
Individual charity trustees must ensure they
are not disqualified from being a charity          Charity trustee misconduct procedures
trustee                                            formulated and applied

                                                   Review the constitution to ensure the power
                                                   to remove charity trustees who are in serious
                                                   or persistent breach of the Act is available

                                                   Adopt a charity trustee remuneration policy
                                                   and procedures which ensure any
                                                   remuneration complies with the conditions
                                                   set out in the Act

      Voluntary Action Orkney                                                     August 2009
Operate in a manner consistent with charity’s purpose
Responsibilities                                  Examples of Good Practice
Ensure that all activities of the charity fall    All charity trustees have a copy of and be
within the charity’s purpose                      familiar with the charity’s constitution or
                                                  governing document
Ensure charity adheres to its constitution or
governing document                                Induction pack given to all new charity
                                                  trustees which includes the constitution of
Ensure assets are not applied to non-             governing documents, up to date information
charitable purposes                               about the activities of the charity and any
                                                  statement of the values of the charity

                                                  Refer to the charity’s purposes when
                                                  developing and agreeing strategic plans

      Act with care and diligence
      Responsibilities                            Examples of good practice
      Ensure charity is run properly,             Agree and regularly review the strategy
      responsibly and lawfully                    and policies of the charity

      Act as guardians of the charity’s assets    Agree financial delegation and budgets,
                                                  and monitor financial performance
      Ensure the charity is solvent
                                                  Agree framework for support and
      Ensure the board of trustees are “fit for   management of paid staff and
      purpose” and the charity trustees are       volunteers
      working together
                                                  Ensure procedures are in place to keep
      Apply duty of care to paid staff and        up to date with legal responsibilities eg
      volunteers                                  employment legislation

                                                  Agree expectations of charity trustee
                                                  attendance at meetings and what to do
                                                  if these are not met

                                                  Annually review progress/effectiveness
                                                  of the charity and agree priorities for
                                                  improving performance

                                                  Include in charity trustee’s induction
                                                  pack the role, responsibilities and
                                                  liabilities, and the remit of any sub-

                                                  Agree and implement programme for
                                                  charity trustee training, board building
                                                  and renewal

                                                  Agree and apply process for managing
                                                  serious differences between charity
                                                  trustees, and between charity trustees
                                                  and staff

                                                  Consider any constitutional change that

      Voluntary Action Orkney                                                    August 2009
                                            may be appropriate eg permitting
                                            remuneration of trustees/delegation of
                                            investment decisions/change in
                                            accounting reference date/change in
                                            selection and rotation of trustees

                                            Delegate, by the Board, a specific area
                                            of oversight (eg investment, trustee
                                            training) to each trustee

                                            Regularly review board procedures for:
                                            receiving reports, confidentiality,
                                            managing risks, tackling issues of poor
                                            performance and overseeing
                                            compliance with regulations

                                            Take professional legal or financial
                                            advice if required

Ensure charity complies with the provisions of the Act, and
any other relevant regulation
Responsibilities                            Examples of Good Practice
Ensure details of the Charity on the        Establish board meeting cycle to allow
Scottish Register are accurate              for consideration of accounts

Submit to OSCR and Annual Return,           Establish board meeting cycle to allow
Monitoring Return (if appropriate) along    for reporting to OSCR
with a copy of the charity’s accounts
singned by a charity trustee                Adopt Institute of Fundraising codes of
Obtain consent if changing the charity’s
name or purposes, or if amalgamating        Consider joining the self regulation
or winding up the charity                   service developed by the Fundraising
                                            Standards Board
Notify OSCR of changes to the
constitution within 3 months of them        Ensure procedures are in place to keep
being made                                  up to date with legal responsibilities eg
                                            employment legislation
Keep financial records, prepare an
annual statement of accounts and            Regularly review board procedures for
subject these to external scrutiny as       overseeing compliance to regulation
required by the Accounting Regulations

Accounting records must be kept for at
least 6 years

Establish a formal agreement between
the charity and any professional fund
raiser or commercial organisation
carrying out fundraising for the charity,
and adhere to forthcoming Fundraising

Provide a copy of the charity’s

Voluntary Action Orkney                                                    August 2009
constitution or governing document, or
annual accounts to members of the
public if requested to

Adhere to regulations on how charities
should refer to themselves in their
documents and on publicity materials

Adhere to other relevant legislation and
regulation (eg employment law, health
and safety, data protection etc)

Extract from: “Guidance For Charity Trustees: acting with care and diligence”,
published by the Office of the Scottish Charity Regulator, (OSCR)

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                                        Anchor Buildings, 6 Bridge Street, Kirkwall, Orkney KW15 1HR


        Voluntary Action Orkney (VAO) is a charitable company limited by guarantee. Registered in Scotland No 143208.
       Registered Office: Anchor Buildings, 6 Bridge Street, Kirkwall, KW15 1HR. Registered Scottish Charity No SCO10691

Voluntary Action Orkney                                                                                          August 2009

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