Regulator unveils new guidance on decision-making

Charity Commission says trustees that follow the guidelines are unlikely to be held personally responsible for decisions that don't work out as intended

Charity Commission
Charity Commission

Trustees who follow the Charity Commission's decision-making principles will be better protected when something goes wrong, according to new guidance from the regulator.

It’s Your Decision, published today, explains the key principles that the regulator and the law expect trustees to apply when they are making significant or strategic decisions.

In a statement, the commission said: "Some decisions don’t work out as the trustees intended, but if the trustees can show that they have applied and followed the principles, it’s unlikely that the courts or the commission will hold them personally responsible for what went wrong."

The principles cover areas that trustees need to get right, such as ensuring they have the relevant powers to carry out their plans, managing conflicts of interest and making informed decisions based only on relevant considerations.

The guidance also covers practical issues such as making sure meetings are properly conducted, recording decisions accurately and what to do if trustees disagree, the commission said.

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