Introduction
Recently, I had the privilege of attending the Charitable Organisations Conference organised by Greydern Associates at the Park-Inn Hotel, Aberdeen. The event was excellently delivered by my good friend, Barrister Uche Iloka (Managing Partner of Greydern Associates), and his team, who provided in-depth insights into the legal framework governing charities. As a board member of Harlaw Area Life-Long Learning Association, Aberdeen, and other charity organisations, I found the sessions invaluable in clarifying the legal obligations and best practices for trustees and directors.
Key Takeaways from the Conference
1. The Legal Role of Charity Trustees and Directors
Charity trustees and directors play a crucial role in ensuring the proper governance, accountability, and sustainability of their organizations. The law requires them to:
- Act in the best interests of the charity and its beneficiaries.
- Ensure compliance with the charity’s governing documents and legal requirements.
- Exercise care, diligence, and skill in managing charity resources.
- Avoid conflicts of interest and act with integrity.
2. Regulatory Compliance and Reporting
Trustees must be familiar with the specific legal and regulatory obligations in their jurisdiction. In Scotland, for example, charities must comply with the Office of the Scottish Charity Regulator (OSCR) guidelines, which include:
- Filing annual financial statements.
- Maintaining accurate records of meetings and decisions.
- Ensuring transparency in governance and financial management.
3. Financial Oversight and Accountability
One of the major discussions at the conference was the importance of sound financial stewardship. Trustees are responsible for ensuring that:
- Charity funds are used appropriately and efficiently.
- Financial statements are regularly reviewed and audited if necessary.
- Fraud prevention measures and risk management strategies are in place.
4. Governance and Decision-Making
Good governance is the backbone of any successful charity. Trustees must work collectively to make informed decisions, ensuring that:
- Governance structures are clearly defined.
- Regular board meetings are held to review strategy and performance.
- Stakeholder interests, including donors, volunteers, and beneficiaries, are considered in decision-making.
5. Legal Liabilities and Protection for Trustees
A crucial takeaway from the workshop was understanding the legal liabilities trustees may face. These include:
- Potential personal liability if found guilty of mismanagement or negligence.
- The importance of trustee indemnity insurance for protection against legal claims.
- Proper documentation of decisions to demonstrate compliance with due diligence.
Conclusion: A Call to Action for Charity Trustees
This conference was an eye-opener, reinforcing the need for continuous learning and responsible leadership in charity governance. Trustees and directors must remain proactive, stay informed on legal changes, and uphold best practices to ensure their charities fulfill their missions effectively.
For anyone involved in charity leadership or considering becoming a trustee, understanding your legal responsibilities is non-negotiable. I encourage all trustees to seek professional advice, attend training sessions, and actively engage in governance matters to protect their charities and maximize their impact.