Charity Commission CC3 The Essential Trustee

I've used the Charity Commission CC3 The Essential Trustee guidance and 25 years of being a charity trustee, chairman and board mentor to create this practical guidance on CC3 and the 6 main duties and responsibilities of trustees of charities.

CHARITY COMISSION CC3 - THE ESSENTIAL TRUSTEE

What Charity Commission CC3 The Essential Trustee guidance is about, and the role and 6 main duties and responsibilities of a charity trustee.

CC3 - Charity Trustee Role

Trustees have overall control of a charity and are responsible for making sure it’s doing what it was set up to do. They may be known by other names, such as directors, board members, governors or committee members.  The Board acts collectively and can delegate authority to others, such as staff or volunteers, but cannot delegate responsibility.  The trustees are ultimately responsible for everything.

CC3 - Trustee 6 Main Duties and Responsibilities

I think the Charity Commission trustee guidance can be a bit opaque at times, but their CC3 The Essential Trustee is is a useful introduction to your main duties and responsibilities in your role as a trustee.

Charity Commission CC3 (The Essential Trustee: What's Involved) is key guidance that all charity trustees must be aware of.  Charity trustees have 6 main duties:

1. Ensure your charity is carrying out its purposes for the public benefit.
   1. There's no legal definition of public benefit, but generally your purposes must be charitable, beneficial and benefit the public or a sufficient section of it.
2. Comply with your charity’s governing document and the law.
3. Act in your charity’s best interests.
4. Manage your charity’s resources responsibly.
5. Act with reasonable care and skill.
6. Ensure your charity is accountable.

I would recommend that Charity Commission CC3 be given to all trustees on appointment.

CC3 - What Do Charity Trustees Need To Know?

What you need to know will vary depending on your charity's size, role and what role you might play as a trustee but these are a good place to start.

1. Your charity's objects (its purpose), powers and procedures are detailed in your governing document (constitution).  Trustees must understand and comply with these.  The Charity Commission 5 min guides covers the key issues you need to be aware of.
2. The Charity Commission recognises the Charity Governance Code, but it's not part of its rules and regulations.  However, it is best practice for good governance, so trustees should have a reasonable understanding.  This Charity Excellence resource gives you an introduction to the Code.
3. You can't possibly know all the detailed laws and regulations that apply, but you must take reasonable steps to ensure your charity complies with these, including seeking professional advice, if necessary.  If you have staff, it might not be your job to do it, but it is always your responsibility to ensure it is done.  You can delegate authority but not your responsibility.

CC3 - How Might Trustees Do That?

No one would reasonably expect a charity trustee to have the expertise of a finance professional or lawyer (unless you are one), but anyone can (and should) ask, is the budget on track, what are the key risks or are we confident we're meeting our legal obligations and keeping people safe?  If the answer is no, or we're not sure, then ask, what are we as the charity trustees going to do about that?

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What is the Charity Commission CC3?

Charity Commission CC3 The Essential Trustee is is a useful introduction to your main duties and responsibilities in your role as a charity trustee.

What does Public Benefit mean?

The public benefit requirement (PB1) is that a charity’s purposes must be exclusively charitable, beneficial, available to all or a reasonable section of the public and any personal benefit or harm must be no more than incidental.  PB2 is running a charity and PB3 reporting.

What does acting in the charity’s best interests mean? 

In the best interests of the charity means in the best interests of carrying out its objects, now and in the future. It does not mean the interests of the charity itself, because charities do not exist in order to perpetuate themselves, nor does it mean the personal interests of its trustees, staff or members.

What is meant by a reasonable person?

A reasonable person is a test based on what the courts would expect an informed and responsible person to do in a situation. To act ‘reasonably’ means to act in this way.

What does trustees acting in good faith mean?

‘Good faith’ means genuine, honest intention or motives; trying to do the right thing, in the interests of the charity. In contrast, the opposite would be bad faith. Bad faith could include acting in a way that the trustees didn’t honestly believe was in the interests of the charity, intentionally benefiting someone in a way that is not in the charity’s interests or deliberately using a power for a purpose for which it was not intended.

This Guide to Charity Commission CC3 The Essential Trustee Is Not Professional Advice

This guide to Charity Commission CC3 and charity trustee duties is for general interest only and does not constitute professional legal or financial advice.  I'm neither a lawyer, nor an accountant, so not able to provide this, and I cannot write guidance that covers every charity or eventuality.  I have included links to relevant regulatory guidance, which you must check to ensure that whatever you create reflects correctly your charity’s needs and your obligations.  In using this resource, you accept that I have no responsibility whatsoever from any harm, loss or other detriment that may arise from your use of my work.  If you need professional advice, you must seek this from someone else. To do so, register, then login and use the Help Finder directory to find pro bono support. Everything is free.