Being a charity trustee is rewarding work. It can open your eyes to new things and make a real difference. Well-run charities are vital to UK society, and trustees are at the heart of that.
But what do trustees actually do? We still meet people who aren’t quite sure what the role involves. Let’s clear up some common confusion.
Director
The word “director” can mean different things:
Company director – If your charity is set up as a company (usually a limited company), company directors must be registered at Companies House. They have legal duties under company law.
Director as a job title – Some charities give senior staff the title “Director” even though they’re employees, not company directors. This can cause confusion.
If you’re a company director, you must be registered at Companies House and follow company law.
Trustee
A trustee holds assets or responsibilities on behalf of others. In charities set up as trusts, trustees look after assets according to the charity’s trust deed.
Charity Trustee
Charity law uses the term “charity trustee” to describe anyone with strategic responsibility for running a charity. This includes:
- All company directors in a charitable company
- All trustees in a charitable trust
- Management committee members in unincorporated associations
If you’re a company director of a charitable company, you’re automatically a charity trustee. You must be registered with both Companies House and the Charity Commission.
Executive and Non-Executive
In the business world, “executive directors” work full-time for the company, whilst “non-executive directors” sit on the board but aren’t involved day-to-day.
Most charity trustees are volunteers, so technically they’re all “non-executive”. However, some charities have paid staff who are also trustees – like a head teacher in an academy or a church minister.
This doesn’t change the board’s overall responsibility.
Your Role as a Trustee
Every charity trustee should be fully involved with the board. You might have specific roles – like sitting on a finance subcommittee or being treasurer – but the whole board remains responsible for strategic decisions.
It’s fine to delegate certain tasks to staff, and boards shouldn’t micromanage employees. But there should always be proper reporting and oversight.
The Charity Commission has warned that problems arise when trustees don’t understand their role. Some boards simply rubber-stamp staff decisions rather than providing proper governance.
Make sure you understand what you’re responsible for. Good governance means taking your duties seriously whilst supporting your charity’s mission.
Tools like governance360 can help trustees stay on top of their responsibilities, with training modules and practical support to make governance simpler and more effective.