A well run and effective charity board should have a Trustees Expenses Policy that is clear and easy to use. This will:
There are specific duties in the 2005 Act that all charity trustees must meet. Trustees might delegate the practical details of these duties to their charity’s staff, volunteers or professional advisers (if they have them), but it is the charity trustees who are responsible making sure the specific duties are met.
Every year, every charity must:
The notes to the accounts must contain the following information, unless it has been provided in the annual report.
Renumeration means any payment or benefit in kind. You must note the amount of renumeration paid to a charity trustee or person connected to a charity trustee.
The note must also ‘state the authority under which that remuneration was paid’. For example: The provision under section 67 of the Act, and a decision of the charity trustees taken at (insert name and data of meeting).
You must also state if no renumeration was paid to a charity trustee or someone connected to a charity trustee.
The total amount of expenses, if any, paid to charity trustees and the number of charity trustees receiving expenses. You must also state if no expenses were paid to charity trustees
The nature of any transactions between the charity and any charity trustee or person connected to a charity trustee. The note must include:
It is essential that there are accurate minutes of all meetings where Trustee expenses rates and payments are agenda items. These must clearly reflect the discussions and decisions about the value of trustee expenses to be included in the budget, and who trustee expenses will be paid to. The draft minutes should be distributed to members in a timely fashion and retained by the charity for a minimum of 10 years.
For more on how to use this, see our page on using SCVO templates.