Did you know that there is a general prohibition on remunerating trustees for acting as a trustee?
Where a person is acting in their capacity as a charity trustee or as a trustee for a charity under a contract or employment, the starting point is that the trustee is not entitled to remuneration.
To establish whether your charity is permitted to pay trustees for acting as a trustee, you would need to consider the contents of the trusts/governing documents of the charity. If payments to trustees are expressly allowed, your charity would not have to worry about the general prohibition.
If your charity’s trusts/governing documents do not allow payments to trustees, or they are silent on the matter, the charity could apply to the Charity Commission for approval.
Where a trustee is providing services to a charity, the Charities Act 2011 sets out the conditions that would need to be met for the charity to be able to pay the trustee for such services. These conditions can be summarised as follows:
For further information or advice on whether your charity could make payments to trustees then please contact Jennifer Clarke on 01274 377366.