Decision making guidance for trustees

The Charity Commission, the independent regulator of charities in England and Wales, has issued new guidance on decision making for charity trustees.

The guidance, entitled It's Your Decision, explains the key principles of decision making that the courts and the Commission expect trustees to apply when they are making significant or strategic decisions about their charity.

The principles deal with the important things that trustees need to get right, such as ensuring they have the relevant powers to carry out their plans, managing conflicts of interest, and making informed decisions based only on relevant considerations.

Following these principles will help to protect trustees if something goes wrong. Some decisions do not work out as the trustees intended, but if the trustees can show that they have applied and followed the principles in making their decision, it's unlikely that the courts or the Commission will hold them personally responsible to the charity for what went wrong.

The guidance also covers practicalities, including making sure meetings are properly conducted, recording decisions accurately, and what to do if trustees disagree.

Charities are independent, and their trustees are responsible for governing them and making decisions about how they should be run. The Commission, and the public, expect trustees to make the best decisions they can for their charity.

The guidance aims to help increase trustees' confidence when making decisions, and inform their processes. It outlines a trustee's role and responsibilities and what good decision making looks like; areas of knowledge that will help trustees be accountable to people with an interest in their charity.

Trustees can get advice or guidance to inform their decisions from a range of sources, including the Commission's website. They should feel confident about following the guidance and applying it to their situation; there are only a few instances when trustees need to get specific advice or permission from the Commission, which the guidance outlines.

To view a summary of the guidance visit www.charitycommission.gov.uk/trustees-staff-and-volunteers/trustee-board/making-decisions.

To view the full guidance visit www.charitycommission.gov.uk/detailed-guidance/trustees-staff-and-volunteers/its-your-decision-charity-trustees-and-decision-making