I was recently challenged to write a blog using a song by Roger Miller, so here goes with King of the Road!
“Trustee for sale or rent; views to let 50 cents.” Bear with me, you may have to sing it in your head a little…
A fundamental pillar of being a charity trustee is that the role is unremunerated. There are circumstances where a trustee can receive recompense for services rendered. Still, these are normally in situations where the trustee has provided goods or services that are ordinarily provided by the trustee in the capacity of their usual job, rather than being used for the provision of being a trustee. The Charities Commission has good guidance on this matter.
The above is updated guidance on the position and the Charity Commission’s recent launch of its revised guidance does make it very clear that the position fundamentally remains unchanged. Trustees must not be paid for being a trustee. Indeed, in a recent interview, David Holdsworth, Chief Executive of the Charity Commission, was quoted as saying that voluntary trusteeship is “the lynchpin of the public’s trust in Charity.”
But should trustees be paid for their services as trustees?
Browsing most adverts for trustees will generally reveal that the commitment declared is typically for 3 or 4 meetings per year, plus time for the review of papers/preparation for those meetings. Anyone who is or has been a trustee will know that this is often quite an understatement of the time commitment. Indeed, many trustees will be putting in several hours a week in a well-organised charity, with this commitment significantly increasing for charities that are going through change or have wider problems.
Additionally, there is a well-recognised problem in the charity sector with diversity. Indeed, I wrote recently on research which identified that the average age of a trustee is 57. As well as a lack of young people on boards, there is generally considered to be a lack of inclusion from minority groups.
Could professional trustees be the answer?
Becoming a trustee demands significant dedication and a substantial amount of free time. This may help explain why the average age of trustees is relatively high; older individuals are often more able to volunteer their time, with fewer financial obligations. Additionally, studies show that people from ethnic minority backgrounds are typically lower paid, and the gender pay gap remains a persistent issue in the UK. These economic barriers may contribute to the common characterisation of trustee boards as “male, pale and stale.” If trustees were compensated for their time, could this open the door to a more diverse and representative group of people willing and able to take on these vital roles?
As well as the greater pool of diversity available, there is an argument that there could be an increase in the skills of trustees – if trustees were paid, would more highly skilled trustees become available? Potentially, charities could reimburse employers to allow their people to spend time out of the workday undertaking their trustee duties, again, allowing potential trustees to offer their services knowing that there is no additional time out of their usual work pattern needed.
The downside of professional trustees is, of course, the damage to public perception; generally, the public has faith in charity trustees because of the altruistic nature of their service. Would they still have this faith if the trustees are on the payroll? Perhaps the answer is a halfway house where the board has some professional trustees who are paid, combined with non-remunerated trustees to act as a safety net to ensure that the charity operates in the best interest of its beneficiaries.
This is, of course, almost an impossible question to answer, but one clear thing is the need to create a more diverse pool of trustees. This can only be a positive thing for charities and perhaps it is time to reconsider the most sacrosanct of charity trustee pillars – trustee for sale or rent anyone?
The next step
As always, please reach out to Dave Allum or your local UHY charity adviser if you require support regarding the above.
