Trustees Unlimited

Pre-Board Training14 July 2011

Trustees Unlimited

Welcome – Stephen Brooker

Trustees Unlimited

Introduction to NCVO & the sector Karl Wilding

The UK Voluntary Sector: funding and resources

Findings from the Civil Society Almanac 2010

Twitter: #almanac2010Feel free to share, but please cite NCVO as the sourcewww.ncvo-vol.org.uk/almanac - comment, analysis, download

The estimates in this slide pack refer to the voluntary sector only – based on the general charities definition

How to grow by £10bn: donors + delivery

2000/01 2001/02 2002/03*

2003/04 2004/05 2005/06 2006/07 2007/08£0

£2

£4

£6

£8

£10

£12

£14

9.49.0

11.5 11.5

12.413.1 13.1

8.08.5

9.6 9.7

11.311.9

12.8

3.9 4.1

1.93.0

1.32.0

0.7 0.5

Individual

Statutory Sources

Internally Generated

Voluntary Sector

Private Sector

National Lottery

Earned income

2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08£0

£2

£4

£6

£8

£10

£12

£14

£16

£18

£20

9.910.6

14.114.6

16.8

17.717.4

12.611.6 13.3

13.5

13.9 14.114.9

2.6 2.5 2.3 2.4 2.7 2.7 3.2

Earned Voluntary Investment

Tangible Fixed Assets: £21.1bn

Investments: £68.8bn

Intangible Fixed Assets: £19m

Fixed Assets: £89.9bn

Current Assets: £21.7bn

Income from investments & cash in bank: £3.2bn

Investment management costs: £459m

Can we invest to generate more income?

Reserves

1.4

4.1

4.5

4.6

4.8

5.0

6.3

6.5

6.7

6.8

8.0

8.0

9.2

9.5

18.2

19.9

44.3

74.7

0.0 20.0 40.0 60.0 80.0

Playgroups and nurseries

Umbrella bodies

Employment and training

International

Law and advocacy

Parent Teacher Associations

Culture and recreation

Village Halls

Development

Scout groups and youth clubs

Social Services

Health

Education

Environment

Religion

Housing

Grant-making foundations

Research

Months

Income: £264m

91,000 micro organisations

4,566 major organisations

Income: £26.9 billion

75,000 small/ medium organisations

Income: £8.4 billion Income is heavily

skewed to the few…

70%

51%

51%

50%

50%

45%

43%

40%

25%

24%

16%

15%

7%

3%

10%

34%

22%

32%

23%

14%

41%

25%

39%

51%

58%

62%

50%

41%

4%

6%

11%

7%

10%

18%

5%

19%

15%

18%

9%

8%

11%

6%

5%

5%

5%

6%

10%

13%

6%

5%

9%

4%

12%

13%

24%

38%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Employment and Training

Education

Law and Advocacy

Social Services

Housing

Umbrella bodies

Health

Development

Culture and Recreation

International

Environment

Religion

Research

Grant-making foundations

Statutory sources Individuals Voluntary sector

Private sector Internally generated National Lottery

Trustees Unlimited

Roles and responsibilities Anne Moynihan

Role of trustees/trusteeship

“The board of trustees is ultimately responsible for everything a charity does. Good governance demands that trustees set clear aims and objectives, establish

priorities, safeguard the charity’s assets and use them exclusively for the benefit of the charity’s beneficiaries.”

The Good Trustee Guide, 5th edition

Who are (& are not) trustees?

The persons having the general control and management of the administration of a charity

Section 97 of the Charities Act 1993

The people ultimately responsible and accountable for a charity’s performance

Duties & responsibilities

Trustee duties

• Duty to comply with the governing document• Duty of care• Duty to safeguard and protect the charity’s resources• Duty to act in the best interests of beneficiaries and avoid conflict of interest • Duty to act personally & collectively • Duty to comply with the law/s• Duty not to profit

• Statutory duties and duties as a Company Director

What do trustees do?

• Set & maintain vision, mission & values• Develop strategy• Establish & monitor policies• Ensure compliance with governing document• Ensure accountability• Ensure compliance with the law• Maintain proper fiscal oversight• Maintain effective board performance• Promote the organisation

What do trustees do cont’d?

Where staff & volunteers are employed:

• Respect the role of staff & volunteers – sets policies to guide them & safeguard interests of charity

• Set up employment procedures – recruitment, support, appraisal, remuneration & discipline

• Select, support and hold chief executive to account

Trustee personal liability

• There are certain circumstances where trustees may be held personally liable for their actions• Protection from liability is available for trustees, including incorporation and trustee indemnity insurance• No protection for trustees who knowingly breach the duty of trust• Charity Commission position – risks should not be overstated

Trustee personal liability

• cause loss to the charity by acting unlawfully, imprudently or outside the terms of the charity’s governing documents

or

• in the case of unincorporated charities, commit the charity to debts which amount to more than its assets; or, in the case of charitable companies, continue to operate when they know or ought to know that they cannot avoid insolvent liquidation

Trustee liability – protection

• Good management practices• Clear roles and responsibilities• Records of decisions taken• Provisions in governing document• Trustee indemnity insurance• Incorporation• Contingency funds• Professional advice• Board development

Charity Commission

“If trustees act prudently, lawfully and in accordance with their governing document, then any liabilities (debt and financial obligations) that they incur as trustees can

normally be met out of the charity’s resources.”

The Essential Trustee, Charity Commission

Characteristics of trusteeship

• The Voluntary Principle - charity trustees are not normally paid for their work as a trustee• Trustees can receive out of pocket expenses• Trustees may be paid for services they provide to the charity• Time commitment varies according to the needs of

the charity• The nature of the role can vary from charity to charity

Why be a trustee?

• Desire to become more actively involved in the community (22%)• The chance to do something to progress a cause

(17%)• More meaningful way to support a charity than donation (17%)• The chance to develop skills (17%)

Get on Board Campaign (Governance Hub)

Why be a trustee?

“…we are the folk of a can-do/will-do spirit….working for a charity works for us – replenishes our optimism, provides us with priceless insights, energises us even

whilst it tires us and binds community…”

Andrew Philips, OBE, 2008

A range of opportunities

Culture and Arts | Sports | Recreation | Education Research | Health | Mental Health | Crisis Intervention

Social Service | Environment | Animal Protection Economic Social and Community | Development |

Housing | Employment and training | Civic and Advocacy | Law and Legal Services | Grant-making Foundation

Umbrella Bodies | International | Religion | Politics Volunteerism | Philanthropic

Finding the right fit• What are your motivations for wanting to be a trustee?• Are you committed to the objects of the charity? • On what level does the charity operate (international, national, local)?• What does the charity do e.g. campaigning, service delivery, policy, research? • What will be expected from you?• Is the charity financially sound?• What is the size of the charity and what are its potential liabilities? • What policies are in place to deal with risk? • Is the charity incorporated? • Who else is on the board?

Droitwich Ferret Welfare

Third Sector, June 2011

Useful resources

Publications:

• The Good Trustee Guide, 5th edition, NCVO• Reducing the Risks of personal liability, 3rd edition, NCVO

– free to download - http://www.ncvo-vol.org.uk/products-services/publications/reducing-risks

• The Essential Trustee, Charity Commissionhttp://www.charity-commission.gov.uk/Charity_requirements_guidance/Charity_essentials/The_essential_trustee.aspx

• Good Governance: a Code for the Voluntary & Community Sector – free to download - http://www.ncvo-vol.org.uk/codeofgovernance

Sarah KingChief Executive, Reach Volunteering

Trustees Unlimited

Tips on how to secure a roleIan Joseph

Trustees UnlimitedQ&A to Panel

Stephen Brooker – ChairKarl Wilding

Anne MoynihanSarah KingIan Joseph