Should your Charity Adopt a Trustees’ Code of Conduct?

Impact of Trustees’ Conduct on Perception of a Charity

Charity trustees hold a position of significant public trust, responsible for governing the charity and directing how it is managed and run.

A trustee’s behaviour can have a significant impact on how their charity is viewed by its supporters, donors, beneficiaries and the general public, as well as impact on public confidence in the charitable sector as a whole. 

Practical Function of a Code of Conduct for a Trustee

Neither the law nor the Charity Commission requires a charity to adopt a trustee code of conduct, but the recently updated Charity Governance Code (implicitly approved by the Commission) promotes use of such a tool to assist trustees to meet their obligations.

A trustee code of conduct can:

• serve as a set of clear guidelines as to the standards of behaviour and good practice expected of trustees;
• help to prevent or address issues that may arise;
• help to ensure greater transparency, accountability and responsibility; 
• be formulated as a quick and convenient reference guide that assists each trustee to be aware of what is expected of them in fulfilling their role; and
• serve as a formal agreement of all trustees to the guidelines contained in the code.

New Code of Conduct Template 

The Code of Conduct for a Trustee is designed to help a board of charity trustees formulate a code of conduct for trustees specifically tailored to their charity. The code should contain statements of the key standards and good practice that the charity trustees are expected to meet. 

The trustee code of conduct can be used by trustees in conjunction with the Small Charity: Checklist of Ongoing Compliance. 

Should My Charity Adopt a Code of Conduct? 

It is good practice for all charities to periodically carry out a review of their governance arrangements and to consider whether it would be appropriate for their charity to adopt a code of conduct for trustees.

Once a Trustee Board has decided to adopt a code of conduct, and it has agreed the content of the code, it can formally adopt it by means of a Board Resolution. 

Copies of the code can then be provided to each trustee with the request that they each sign and date their copy and return it to the secretary or administrator of the charity. 

At the same time, the Trustee Board should make clear to all trustees that they must ensure that they have an adequate understanding of what the code requires of them.

The code should be periodically reviewed and revised as necessary by the Trustee Board. 

Further Guidance

The code cannot in practical terms be (and should not aim to be) a document setting out all of the legal and regulatory requirements and standards applicable to a charity trustee. 

For detailed guidance covering standards applicable to trustees, see the Charity Commission website which contains very helpful detailed material. Trustees should be referred to that website as necessary.