Impact and the trustee’s role Neal Green, Senior Policy Advisor - 1

Impact… Impact = difference Difference can be positive or negative So what difference do you want your charity to make? What difference do you want to make to your charity? Impact links to charities’ purposes and public benefit So the Commission is interested 5

We could focus on the negative 3

I’d rather focus on the positive 3

Top Tips for Trustees Understand your role – you are there to govern, direct, lead! Know your duties, make sure your charity complies Ask ‘dumb’ and ‘awkward’ questions! Compliance need not stifle innovation Risk = opportunity – what’s your appetite? 5

The Essential Trustee (CC3) 5

Ensure your charity is carrying out its purposes It’s about knowing: what your charity can and can’t do within its purposes how your charity is fulfilling its purposes and benefiting the public what difference your charity is really making 5

Comply with your charity’s governing document and the law It’s about being: familiar with your governing document up to date with filing accounts, returns and any changes to your charity’s registration details aware of other laws that apply to your charity It’s not about being: an expert - but you do need to take reasonable steps to find out 5

Act only in your charity’s best interests It’s about: making balanced, informed decisions recognising & dealing with conflicts of interest ensuring trustee benefits are allowed being prepared to question and challenge accepting majority decisions It’s not about: preserving the charity for its own sake serving personal interests 5

Manage your charity’s resources responsibly It’s about managing risks, protecting assets (reputation) and people getting the resources your charity needs having and following appropriate controls and procedures dealing with land and buildings responsibility for, and to, staff and volunteers 5

Act with reasonable care and skill It’s about: using your skills and experience deciding when you need advice preparing for meetings getting the information you need (financial, management) being prepared in case something does go wrong 5

Ensure your charity is accountable It’s about: meeting legal accounting and reporting requirements being able to show that your charity complies with the law and is effective being accountable to members and others with an interest in the charity ensuring that staff and volunteers are accountable to the board welcoming accountability as an opportunity not a burden 5

Putting it into practice Pick one duty that: your charity is really good at you think you need to work on you need to ask more questions about 5

What often goes wrong? Not knowing governing document Not understanding the finances Not ensuring controls & procedures work Not asking difficult questions Not challenging conflicts of interest Not challenging dominance Not following decision-making principles Not filing accounts & annual report Not meeting account/ annual report standards 6

It’s your decision (CC27) Decision making principles It’s your decision (CC27) Within your powers? Acting in good faith and only in the interests of the charity? Sufficiently informed? Taken account of all relevant factors? Disregarded any irrelevant factors? Dealt with conflicts of interest? Within the range of decisions a reasonable trustee body could make in circumstances? Record it! 5

Decision making ‘Pinch points’ for SUs Controversial/extremist speakers, academic freedom and ‘no platform’ policy Campaigns Members’ resolutions vs trustees’ duties Member societies Follow the decision making principles! How does it fit with the charity’s purposes and their boundaries? Have policies in place 5

15 Questions you need to ask!

Managing risk Birth of a charity (RS29) – 2012 5

Risk management principles What could possibly go wrong? How bad? How likely? Avoid it completely? What is the opportunity cost? Transfer it (get someone else to do it)? Insure against it? Manage it with controls, policies and procedures? Live with it? When did we last look at this? 5

Impact – just a thought 1. Starting with what you do: Think about what you do (activities) Try to work out what difference it makes Try to think of ways of counting/measuring that 2. Starting with what impact you want to have (turn it around): Look at your charitable purposes What difference do you want to make? How would you know if you had achieved it? How could you achieve that difference? What activities would support that (and are you doing them now)? What resources do you need? 5

On the gov.uk Charity Commission pages: CC3: the Essential Trustee Essential Reading On the gov.uk Charity Commission pages: CC3: the Essential Trustee 15 Questions You Should Ask Managing a Charity’s Finances (CC12) It’s Your Decision (CC27) Public benefit: an overview Make sure we have your email (CC news) Also – Association of Chairs, NCVO, CFG etc www.governancecode.org 5

Any questions? @chtycommission