Charitable changes

For those who want to give something back to society, the invitation to be a trustee of a charity can be both flattering and fulfilling. Nevertheless many people are reluctant to take on the role, worried about the potential personal liabilities involved. In some cases they are deterred by the strict rules preventing payments to charity trustees. Fortunately this is changing. The Charities Act 2006 contains wide-ranging reforms that should make charity trusteeship much more attractive.

The Charities Act makes the following changes:

• Charities will have the power to pay trustees (with some restrictions) for providing services to the charity (except the service of acting as a trustee or as a paid employee) without having to obtain the approval of the Charity Commission
• Trustees can now apply to the Charity Commission, as well as to the High Court, for relief from personal liability for breach of trust, where the trustee has acted honestly and reasonably
• Most charities can now take out trustee indemnity insurance to protect their trustees from liability, without the need to obtain the approval of the Charity Commission.

For further information on charity trustees or the Charities Act, please contact:

Tamasin Perkins
Tel +44 (0)20 7440 7420
tamasin.perkins@mishcon.com