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The regime governing charities has been progressively tightened up over the years, making the sort of scandals that were once not uncommon much more of a rarity. This means that trustees now have to adopt a more professional attitude to the management of a charity’s affairs than was necessary in the past.
However, the Charities Act 2006 also contains provisions which will assist many charities by providing clarity on matters in which trustees are paid by charities or have commercial links with them
The Charity Commission has published guidance for the trustees of charities. This states that they must:
For more detail see the Charity Commission website and, in particular the FAQs about running a charity (scroll down that page if needed).
The Charity Commission also has a comprehensive range of downloads for charity trustees and prospective trustees. In particular, guidance on avoiding conflicts of interest has been provided. Conflicts of interest are a common issue, particularly in smaller charities.
From 2014, the Charity Commissionhas progressively accelerated the number of investigations into charities it suspects are not being properly managed. One of the criteria it uses to determine whether an investigation is warranted is the late filing of accounts. In 2015, the closure of 'Kids Company' following financial irregularities was widely reported. It was announced in 2017 that banning orders agains former directors of the charity would be sought.
Trustees of charities are also responsible fopr ensuring their charity complies with the General Data Protection Regulation. Guidance has been issued by the National Council for Voluntary Organisations.