Trustee responsibilities – How to act in a charity’s best interests
Hazra Patel, 13 March 2026
Hazra Patel, 13 March 2026
The ongoing pressures of the current economic climate have resulted in businesses and charities alike being forced to make increasingly difficult decisions to balance the books.
For charities that are committed to having a positive impact on the world, it can be more difficult for trustees to know how to act in a charity’s best interests when times are tough.
As resource scarcity can often be a precursor to poor decision-making, we want to highlight the six main responsibilities of trustees and offer some advice on how they can continue to meet them. These six duties are set out in the Charity Commission’s guidance CC3: The Essential Trustee.
Trustees must ensure the charity is carrying out its purposes for the public benefit and be able to explain how its activities further those purposes. This includes reviewing your charity’s activities and outcomes to ensure they remain aligned with its stated objectives. This review should be undertaken periodically and particularly where new activities have commenced.
Alongside the law, your charity needs to follow the rules set out in its own governing document.
Trustees must comply with the charity’s governing document and relevant law. It is not uncommon however that over time, the charity’s governing document needs to be updated due to growth, restructuring, changes in the way a charity carries out its activities etc. If changes are required, trustees must follow the correct legal process for amendments, which may include obtaining member approval or Charity Commission consent, depending on the charity’s structure.
Trustees must act in good faith and only in the interests of the charity, ensuring that decisions support its purposes as set out in the governing document.
Acting in the charity’s best interests also includes managing conflicts of interest appropriately and ensuring trustees do not receive unauthorised personal benefit.
If the original goals of the charity no longer seem feasible, then it may be necessary to redraft the governing document to ensure that the stated goals are still realistic and achievable.
However, depending on the charity structure, this can prove a complicated legal process, so be sure to seek advice first.
Part of the trustees' mission to make informed, balanced decisions centres on the careful and strategic use of whatever resources are available.
Trustees must ensure the charity’s assets are used only to support or carry out its purposes. This includes maintaining appropriate financial controls, managing risk, and complying with any legal duties relating to investments or restricted funds.
Seeking professional support is often the best way to ensure that this responsibility is adhered to, as it means that trustees are not left in the dark about the financial health of the charity they operate.
Knowing how and when to invest funds and when it is necessary to use resources to address immediate needs is a vital skill that trustees must develop, but they do not need to do this alone.
Alongside expert support and guidance, trustees may benefit from discovering other sources of funding, such as grants or reliefs, that they may not have been aware of.
Securing appropriate funding can strengthen a charity’s ability to deliver its purposes effectively.
However, no amount of resources can ever substitute calm reasoning that should always prevail when a trustee is making decisions for a charity.
Trustees must exercise the care and skill that is reasonable in the circumstances, taking into account any special knowledge or experience they have (for example, professional qualifications).
This does not necessarily mean forging ahead without any assistance. Advice and support can be sought when it is necessary to do so. In addition, Trustees should ensure sufficient time is allocated to enable effective and informed decision-making.
Trustees must ensure the charity complies with statutory reporting requirements, including filing annual accounts and returns where required. They should maintain proper records and ensure the charity is open and transparent about its activities and finances. This includes declaring any conflicts of interest that could interfere with the operations of the charity or may impact the way that a trustee approaches situations.
Our experienced charity and not for profit team are happy to help organisations and trustees with a wide range of issues, including support with record keeping and other essential responsibilities.
Our Charity and Not-for-Profit specialists work with trustees to strengthen financial oversight, review governance arrangements and support organisations in meeting their regulatory obligations. We can also assist with financial reporting, record-keeping processes and governance reviews.
If you would like to discuss your charity’s governance or trustee responsibilities, please get in touch with Partner, Hazra Patel (hazrapatel@lubbockfine.co.uk)
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