Paying Charity Trustees: An Evolving Theme in the Charity Sector
Hazra Patel, 17 June 2026
Hazra Patel, 17 June 2026
Voluntary trusteeship has long been considered one of the defining characteristics of the charity sector.
However, as trustee responsibilities grow in complexity and begin to encompass governance, compliance, financial oversight, safeguarding and digital strategy, the question of whether this model remains fit for purpose is increasingly being debated.
The Charity Commission reaffirmed its position in the updated guidance (CC11) published in April 2025 that trustees cannot generally be paid simply for being a trustee.
The Commission's Chief Executive has described voluntary trusteeship as 'the lynchpin of the public's trust in charity.'
Despite this, the nuances around trustee payments are significant and worth understanding to ensure you do not stray too far from the Commission's guidelines.
The law does permit payment to trustees in certain defined circumstances under the Charities Act 2011.
For example, trustees can be paid for providing goods or services to the charity that are over and above their normal trustee duties, such as a trustee who runs a construction firm carrying out works for the charity.
Payment requires a written agreement, confirmation the payment is reasonable and in the charity's best interests. It must also be approved by the non-conflicted majority of the board.
Reasonable out-of-pocket expenses (travel, childcare costs for attending meetings or communication costs) are generally capable of reimbursement and are not normally regarded as trustee remuneration.
In limited circumstances, typically requiring specific authority in the governing document or Charity Commission consent, trustees may be paid directly for their role, but there are many factors that will determine this.
A broader conversation is taking place about whether the current framework serves charities well.
Critics argue that the requirement for unpaid trusteeship limits diversity. Research has suggested that trustee boards continue to be less diverse than the communities many charities serve.
The time commitment for trustees at well-run charities is frequently much greater than the three or four meetings per year that many role descriptions suggest.
Some organisations, including Friends Provident Foundation, have been piloting models that include paid associate trustee roles, with applications to the Charity Commission to expand these arrangements.
The argument is that a modest payment could make trusteeship accessible to younger professionals, those with caring responsibilities and people from lower-income backgrounds. These are groups currently underrepresented on charity boards.
Any decision to pay a trustee or connected person requires careful consideration of conflicts of interest, proper documentation and transparency in the charity's annual accounts.
Unauthorised payments can amount to a breach of trust, so we strongly recommend taking professional advice before making any such arrangement.
Navigating the rules around trustee payments can be difficult to get right, particularly where conflicts of interest or governing document restrictions are involved.
If you would like to discuss trustee payments or governance arrangements within your charity, our team would be happy to help. Get in touch with Partner, Hazra Patel.
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