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Consultation on new draft Guidance from the Charity Commission on Trustees’ Decision Making

Consultation on new draft Guidance from the Charity Commission on Trustees’ Decision Making

The Charity Commission has released draft guidance for an informal consultation on principles to encourage better decision-making by trustees: “It’s your decision – guidance on decision making for charity trustees

The guidance focuses on the following seven key principles for trustees to follow when making decisions:

(i) to act within their powers;

(ii) to act in good faith and only in the interests of the charity;

(iii) to adequately inform themselves;

(iv) to take all relevant factors into account;

(v) to disregard any irrelevant factors;

(vi) to manage conflicts of interest; and

(vii) to make decisions that are within the range of decisions which a reasonable trustee body would make.

The guidance does not change trustees’ legal responsibilities, but seeks to set them out clearly and explain them to trustees.

IBB’s specialist charity lawyers have a wealth of experience in delivering practical commercial advice to charities and not for profit organisations and those who work with them. Contact our charity law team here, call 01895 207809 or email charities@ibblaw.co.uk.