The Regulator for Charities in England and Wales

RS10 - Start as you mean to go on: Trustee Recruitment and Induction, Annex A, B, C, D & E

(Version July 2005)


Annex A

Trustee checklist

The following checklist provides charities with questions they may find useful to consider at the various stages of trustee recruitment, selection and induction. The points have been drawn from our casework experience and from responses to our survey.

Not all points will apply to all types of charity. They should be regarded as a starting point and not the last word on a particular issue

Trustee recruitment, selection and induction

Stage one – preparing to recruit

Do we regularly check our charity’s governing document to make sure our recruitment process takes into account any restrictions in it?
Do we regularly consider whether the restrictions in the governing document are workable?
If the governing document says that some or all of the trustees must retire after a certain period in office, does the board plan ahead for this loss of skills and experience?
Do we regularly review the skills, experience and input of our trustees?
Do we carry out a skills audit of the trustee board to identify any gaps before recruiting new trustees?
Do we draw up a trustee job description which will give prospective candidates a realistic idea of the duties and time commitment involved in being a trustee?
Do we think, before recruiting, about what support we will give to new trustees, such as an induction tour or ongoing training?

 


Stage two – the recruitment process

Do we regularly review the methods we use to find new trustees?
If we sometimes or always have difficulties finding new trustees, do we look at widening our methods of recruitment?
Do we from time to time review the diversity of the trustee board to make sure it represents its community (whether a geographical community or a community of interest)?
Do we know when trustees are eligible to act and are not disqualified, for example by charity or company law?
Do we ask a new trustee to sign a declaration that they are eligible to act as trustee?
Do we need to conduct Criminal Records Bureau checks on new trustees because our beneficiaries are children or vulnerable adults?

 

Stage three –induction

Do we have an induction process for new trustees which helps them to understand our charitable purposes, financial position and current issues facing the charity?
Do we give new trustees an information pack or job description outlining their duties and responsibilities so that they are fully aware of their role?
Do we give new trustees a copy of the charity’s governing document?
Do we give new trustees a copy of the charity’s latest accounts?
Do we give new trustees a copy of the charity’s minutes of recent meetings?
Do we give new trustees copies of the Charity Commission’s booklets The essential trustee: what you need to know (CC3) and The Hallmarks of an Effective Charity (CC60)?
If we are a company, do we make sure that new trustees have an understanding of company law?
Do we have a procedure to manage potential conflicts of interest and are new trustees made aware of it?

 

Stage four – after recruitment

Do we need to provide further training and development to trustees to ensure that they can continue to make an effective contribution to the charity?
Do we have a system of evaluation and review so that we can measure the effectiveness of our recruitment and induction procedure?
Do we keep up to date with Charity Commission guidance and policy news?


Annex B

Research techniques and survey findings

As part of our original research into trustee recruitment, selection and induction practices, we commissioned a postal survey of a random sample of 3,000 registered charities across four income bands. We have again conducted a survey of 3,000 charities, weighted as before across four income bands, to allow a meaningful comparison with our original findings.

We have also analysed data relating to our casework and the trustees’ details on our Register.

An independent research company was commissioned to carry out the follow-up postal survey of the trustee recruitment, selection and induction practices in the selected charities. The survey was developed jointly between the Commission and the research company, and was designed so that, wherever possible, meaningful comparisons could be made with the survey in 2001.

The postal survey achieved a 50% response rate, which is high for surveys of this nature. In total, 1,487 completed forms were returned for analysis. This allows a confidence interval exceeding +/- 3%, which is industry standard.

Charity size and proportion sampled

The survey sample was stratified into the following income bands:

Size of charity Income band % in total Register % selected for mailing % in return
Small £10,000 or less 58 50 47
Medium £10,001 - £250,000 34 30 31
Large £250,001 - £999,999 5 10 11
Very large £1,000,000 + 3 10 11

Survey findings – trustee recruitment and selection

Some of the results refer to open questions or those where a charity could choose more than one option, so the aggregate score may not equal 100%.

How difficult is it to recruit new trustees?

Charities were asked to say whether they ever faced difficulty in recruiting and selecting new trustees

Table 1: Are problems encountered in filling vacancies on the trustee body?

Difficulties faced Total % Small % Medium % Large % Very large %
Always 11 10 14.5 14 5
Sometimes 39 32 39.5 46 57
Never 49 56 46 39 38
Not stated 1 2 - 1 -

What difficulties are experienced in recruiting new trustees?

Charities were asked to say whether they experienced any difficulties when recruiting new trustees.

Table 2: The main reasons why charities experience problems recruiting trustees24

Difficulties Total % Small % Medium % Large % Very Large %
Shortage of applicants 35 35 39 35 24
Difficult to find people willing to make the time commitment 82 84 86 79 68
Difficult to find people with the right skills/experience 41 21 44 66 72
Difficult to find people who want the responsibility or are willing to take on the legal obligations 53 50 61 59 39
Difficult to find people who are interested 39 46 44 32 9
Difficult to find people who are young 30 32 27 33 30
N/A 1 1 1 - 1

Is it more difficult to recruit trustees today?

Charities were asked to say whether it was less difficult, about the same or more difficult to fill vacancies on the trustee board now compared to three years ago.

Table 3: How difficult is it to recruit trustees today compared to three years ago?

Difficulty Total % Small % Medium % Large % Very large %
Less difficult 7 5 9 13 11
About the same 65 65 65 64 67
More difficult 13 12 15 10 13
Don’t know 11 14 7 10 7
N/A 4 5 4 3 2

How do charities attract new trustees?

Charities were asked to state what methods they used to attract new trustees.

Table 4: Methods used to attract new trustees

Methods used Total % Small % Medium % Large % Very large %
Advertising in the press 6 3 6 10 15
Networking with other charities 9 3 12 21 19
Use of a trustee brokerage service 1 0.4 2 5 2
Word of mouth and personal recommendation 81 76 84 89 89
Other 12 15 11 8 8

Do charities use any tools to assist recruitment?

Charities were asked if they carried out any of the following activities to assist the recruitment and selection process.

Table 5 : Tools used to assist the recruitment and selection process

Activities Total % Small % Medium % Large % Very large %
A skills audit of trustees 17 4 16 38 50
Provide trustee job descriptions 22 8 28 38 46
Use a dedicated recruitment committee 5 2 4 7 16
None of these 67 85 60 43 33
N/A 2 2 1 1 1

What information are new trustees provided with?

Charities were asked to say whether, as a matter of course, they gave new trustees key pieces of information about the charity.

Table 6: What information do charities provide for new trustees?

Information Total % Small % Medium % Large % Very large %
Charity accounts 70 58 73 87 93
Charity’s governing document 61 47 66 79 89
Minutes of previous trustee meetings 69 60 72 80 89
A formal tour/induction process 32 15 32 62 75
None of these 13 19 10 4 2

What checks are made on prospective trustees before appointment?

Charities were asked to say whether they made any checks on prospective trustees before appointment, for example a Criminal Records Bureau check.

Table 7: Are checks made on new trustees?

Are checks made? Total % Small % Medium % Large % Very large %
Yes 23 14 27 30 43
No 75 83 71 69 56
Not stated 2 3 2 1 1


Annex C

Glossary of terms

A breach of trust occurs when trustees act outside the terms of their governing document. A trustee found to be in breach of trust can be held personally responsible for liabilities incurred by or on behalf of the charity, or for making good any loss to the charity.

Board of trustees refers to a charity’s governing body. This may also be called the management committee, executive committee or board of directors, or may be known by some other title.

Charity trustees are the people responsible under the charity's governing document for controlling the management and administration of the charity (section 97(1) of the Charities Act 1993). They may be called trustees, managing trustees, committee members, governors, or directors, or they may be referred to by some other title. In the case of an unincorporated association, the members of the executive or management committee are its charity trustees. In the case of a charitable company, they are the directors.

A governing document is any document that sets out the charity's purposes and, usually, how it is to be administered. It may be a trust deed, constitution, memorandum and articles of association, conveyance, will, Royal Charter, scheme of the Commission or other formal document.

A small charity is broadly defined in terms of its income. If a charity has an annual income of £10,000 or less recorded on our database in its last full financial year, we will consider it to be a small charity. Almost 100,000 charities in England and Wales fall into this category.

A user is anyone who uses or benefits from a charity’s services or facilities, whether provided on a voluntary basis or as a contractual service.

Annex D

Resources for trustees

There are many resources that charity trustees can use on recruitment, selection and induction. While this is not a definitive or complete list, it does offer a good overview and a useful starting point.

The Charity Commission for England and Wales

Responsibility for charities is split between our four offices. Charities with an income of £10,000 or less fall under the responsibility of the Small Charities Unit (SCU) based in the Liverpool office. Further information for charities of any size can be obtained from the Commission at:

London

Harmsworth House
13-15 Bouverie Street London
EC4Y 8DP

Liverpool

3rd & 4th Floor
12 Princes Dock Princes Parade Liverpool
L3 1DE

Newport

8th Floor
Clarence House Clarence Place Newport
South Wales
NP19 7AA

Taunton

Woodfield House Tangier
Taunton
Somerset
TA1 4BL

The Charity Commission Contact Centre provides advice of a general nature on a wide range of issues:

Tel: 0845 300 0218
Minicom: 0845 300 0219
E-mail: enquiries@charitycommission.gsi.gov.uk
Website: www.charitycommission.gov.uk

Active Communities Unit (ACU)

The ACU was established by the Home Office to promote the development of the voluntary and community sector and encourage people to become actively involved in their communities, particularly in deprived areas.

Active Communities Unit
1st Floor, Peel
2 Marsham Street
London
SW1P 4DF

Tel: 020 7035 5328
E-mail: public_enquiry.acu@homeoffice.gsi.gov.uk
Website: www.homeoffice.gov.uk

Association of Charitable Foundations (ACF)

ACF promotes and supports the work of charitable grant-making trusts and foundations.

Association of Charitable Foundations
Central House
14 Upper Woburn Place
London
WC1H 0AE

Tel: 020 7255 4499
E-mail: acf@acf.org.uk
Website: www.acf.org.uk

Association of Chief Executives of Voluntary Organisations (ACEVO)

ACEVO provides good practice resources and information on sector issues.

Association of Chief Executives of Voluntary Organisations
83 Victoria Street
London
SW1H OHW

Tel: 0845 345 8481
E-mail: info@acevo.org.uk
Website: www.acevo.org.uk

Business Community Connections (BCC)

BCC is a charity dedicated to helping other charities obtain more support from business.

Business Community Connections
Gainsborough House
2 Sheen Road
Richmond upon Thames
Surrey
TW9 1AE

Tel: 020 8973 2390
E-mail: info@bcconnections.org.uk
Website: www.bcconnections.org.uk

CR Search and Selection

This is a recruitment and selection consultancy.

CR Search and Selection
40 Roseberry Avenue
London
EC1R 4RX

Tel: 020 7833 0770
E-mail: info@crsearchandselection.com
Website: www.crsearch.co.uk

Charities Aid Foundation (CAF)

CAF helps non-profit organisations in the UK and overseas to increase, manage and administer their resources.

Charities Aid Foundation
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4TA


Tel: 01732 520 000
E-mail: enquiries@cafonline.org
Website: www.cafonline.org

Charity Skills

Charity Skills provides a specialist database, telephone helplines, seminars and newsletters for its members in the voluntary sector.

Charity Skills
PO Box 43520
London
SW15 1WZ

Tel: 0208 785 3327
E-mail: info@charityskills.org
Website: www.charityskills.org

Charity Trustee Networks

This charity offers mutual support by encouraging and developing self-help trustee network groups providing cost-effective, peer-to-peer consultancy and mentoring.

Charity Trustee Networks
PO Box 633
Godalming
GU8 5ZX

Tel: 01428 682252
E-mail: info@trusteenetworks.org.uk
Website: www.trusteenetworks.org.uk

Companies House

All limited companies, including charitable companies, in the UK are registered at Companies House. Seminars for newly appointed directors and company secretaries are provided.

Cardiff

Crown Way
Cardiff
CF14 3UZ

London

PO Box 29019
21 Bloomsbury Street
London
WC1B 3XD

Edinburgh

37 Castle Terrace
Edinburgh
EH1 2EB

Tel: 0870 333 3636
E-mail: enquiries@companies-house.gov.uk
Website: www.companieshouse.gov.uk

Ethnic Minority Foundation (EMF)

EMF develops resources for black and minority ethnic organisations, these include networking and training opportunities and a trustee register.

Ethnic Minority Foundation Headquarters
Boardman House
64 Broadway
Stratford
London
E15 1NG

Tel: 020 8432 0000
E-mail: enquiries@emf-cemvo.co.uk
Website: www.ethnicminorityfund.org.uk

Institute of Chartered Secretaries and Administrators (ICSA)

ICSA provides information and good-practice guidance on governance issues affecting the sector. It also has a register of available trustees to charities that need them.

Institute of Chartered Secretaries and Administrators
16 Park Crescent
London
W1B 1 AH

Tel: 020 7580 4741
E-mail: info@icsa.co.uk
Website: www.icsa.org.uk

Institute of Fundraising

The Institute of Fundraising aims to promote the highest standards of fund-raising practice.

Institute of Fundraising
Park Place
12 Lawn Lane
London
SW8 1UD

Tel: 020 7840 1000
E-mail: enquiries@institute-of-fundraising.org.uk
Website: www.institute-of-fundraising.org.uk

National Association of Councils for Voluntary Service (NACVS)

This is the national umbrella body of Councils for Voluntary Service in England. A local Council for Voluntary Service provides advice, support and information to voluntary organisations and charities in their area, including help with charity registration. The National Association can put charities in touch with their local CVS.

National Association of Councils for Voluntary Service
177 Arundel Street
Sheffield
S1 2NU

Tel: 0114 278 6636
E-mail: nacvs@nacvs.org.uk
Website: www.nacvs.org.uk

National Council for Voluntary Organisations (NCVO)

NCVO provides information on fund-raising and governance issues and a range of general support services.

Its website also includes details of a Trustee Brokerage Network Group which is a network of brokerage or placement services who match trustees with vacancies on the boards of voluntary organisations. Members register their brokerage service in a directory and can access trustee recruitment and induction resources at the Trustee Bank website (www.trusteebank.org.uk).

National Council for Voluntary Organisations
Regent’s Wharf
8 All Saints Street
London
N1 9RL

Tel: 020 7713 6161
Helpdesk: 0800 2798 798
E-mail: ncvo@ncvo-vol.org.uk
Website: www.ncvo-vol.org.uk

Public Appointments Unit ( PAU)

For information about public appointments and public bodies.

Public Appointments Unit
Cabinet Office
Admiralty Arch
The Mall
London
SW1A 2WH

Tel: 0845 00 00 040
E-mail: public.appointments.unit@cabinet-office.x.gsi.gov.uk
Website: www.publicappointments.gov.uk

REACH

An organisation that matches the skills of experienced people to the need of voluntary organisations.

REACH
89 Albert Embankment
London
SE1 7TP

Tel: 0207 582 6543
E-mail: mail@reach-online.org.uk
Website: www.reach-online.org.uk

VolResource

This internet-only resource for charities offers quick links to useful organisations concerned with the effective running of charities.

E-mail: info@volresource.org.uk
Website: www.volresource.org.uk

Welsh Council for Voluntary Action (WCVA)

This organisation represents the interests of and campaigns for voluntary organisations, volunteers and communities in Wales. It provides a comprehensive range of information, consultancy, funding, management and training services.

Welsh Council for Voluntary Action
Baltic House
Mount Stuart Square
Cardiff Bay
Cardiff
CF10 5FH

Tel: 0870 607 1666
E-mail: help@wcva.org.uk
Website : www.wcva.org.uk

Journals, magazines and newspapers

Charity Finance
3 Rectory Grove
London
SW4 0DX

Tel: 020 7819 1200
E-mail: rcoley@charityfinance.co.uk
Website: www.charityfinance.co.uk

Charities Management
Mitre House Publishing
The Clifton Centre
110 Clifton Street
London
EC2A 4HD

Tel: 020 854 27766
Website: www.charitiesmanagement.com

Charity Times

Tel: 020 7426 0496 / 0123
Website: www.charitytimes.com

The Corporate Citizenship Company

This company provides an overview and round-up of current issues, largely through case studies.

E-mail: mail@corporate-citizenship.co.uk
Website: www.corporate-citizenship.co.uk/publications

Network Wales

Contact WCVA for details

The Guardian

The Society section in The Guardian is particularly useful.

Website: www.societyguardian.co.uk

Third Sector

Tel: 020 8606 7500
E-mail: subscriptions@haynet.com
Website: www.thirdsector.co.uk

Voluntary Sector

Contact NCVO for details – see above.

Annex E

Bibliography

Active Community Unit (2004) ChangeUp, the Capacity Building and Infrastructure Framework for the Voluntary and Community Sector

Akpeki, T (2001) Involving Young People (NCVO)

Akpeki, T (2001) Recruiting and Supporting Black and Minority Ethnic Trustees (NCVO)

Charity Commission (2004) Amending Charities’ Governing Documents: Orders and Schemes (CC36)

Charity Commission (2003) The Charity Commission and Regulation

Charity Commission (2003) Collaborative Working and Mergers (RS4)

Charity Commission (2004) Hallmarks of an Effective Charity (CC60)

Charity Commission (2003) Milestones: Managing Key Events in the Life of a Charity (RS6)

Charity Commission (2003) Payment of Charity Trustees (CC11)

Charity Commission (2005) Finding New Trustees: What you need to know (CC30)

Charity Commission (2005) The Essential Trustee: What you need to know (CC3)

Charity Commission (2004) Small Charities: Transfer of Property, Alteration of Trusts, Expenditure of Capital (CC44)

Charity Commission (2002) Trustee Recruitment, Selection and Induction (RS1)

Charity Commission (2000) Users on Board: Beneficiaries who become Trustees (CC24)

Charity Commission (2004) Village Halls and Community Centres (RS9)

Dyer, F and Jost, U (2002) Recruiting Volunteers: Attracting the People you Need (Directory of Social Change)

Eastwood, M (2001) The Charity Trustee’s Handbook (Directory of Social Change)

Morris , D and Warburton, J (Editors) (2003) Charities, Governance and the Law: The Way Forward

Acknowledgements

We would like to thank everyone who has co-operated in the production of this report, especially the charities that gave their time to take part in our survey or gave permission to use their charities as case studies. Thanks also go to Linda Laurance of Charity Trustee Networks for her advice and support