Charity Trustees

Many people decide to set up a charity, or become involved with a charity, often to provide local services, support or advice. There are six steps to setting up a charity:

1. Finding trustees for the charity - usually at least three are required
2. Ensuring that the charity has 'charitable purposes for the public benefit'
3. Choosing a name for the charity
4. Choosing a structure for the charity
5. Creating a governing document
6. Registering a charity if the annual income is over £5,000 or if a charitable incorporated organisation is set up.

The trustees are the people who are responsible for the general control and management of the administration of the charity. As such, they are the 'engine' which drives the charity's activities and are essential to the running of the charity. They should have the skills that the particular charity needs and must comply with any specific requirements set out in the charity's governing document.

Once potential trustees have been identified, a vital first step is to ensure that any potential trustee has not been disqualified from acting as a trustee and candidates are asked to confirm in writing that this is the case. It is interesting, therefore, that the Charity Commission has opened an enquiry into JAFLAS (Joint Armed Forces Legal Advocacy Service – charity number 1142202) to consider whether a disqualified individual continued to play a role in the charity.

The charity provides free legal advice to those experiencing financial hardship. The Charity Commission became involved when a former trustee was automatically disqualified from acting as a trustee or senior manager. However, as of July 2022, the trustee was still listed as a director of the charity and as being a person a person of significant control on Companies House records (the charity is a charitable company and is therefore also registered with Companies House).

In its press release the Charity Commission pointed out that it has not made any conclusions and the opening of the enquiry is not a finding of wrongdoing and the charity does not have an official connection with HM Armed Forces.

The announcement of the investigation by the Charity Commission is an important reminder for anyone wishing to become involved in a charity, or who is already a trustee and seeking to make a new appointment, that all appropriate checks should be made in relation to all trustees and all relevant records updated. It seems that even a charity providing free legal advice is not immune from investigation.

Acting as a trustee while disqualified has both civil and criminal consequences. Accordingly, anyone involved with a charity should consider taking specialist legal advice to ensure that all legal and regulatory obligations are met.

To discuss this or any other charity matter, contact us.