Trustees’ Legal Duties: Best Interests

Acting in the best interests of the charity is a key duty for charity trustees and it must be at the forefront of everyone’s mind when it comes to decision making within charities.

One way to act in the best interests of the charity is to avoid conflicts of interest.

When you realise you’re in a conflicted situation, it can feel personal. You practice the six duties of the trustees, you consistently act in the best interests of the charity, you’ve declared a conflict of interest or loyalty and now you’ve been asked to leave the meeting room and not vote in a decision. Occasionally, conflicts of interest can create an unpleasant and awkward atmosphere but it doesn’t have to be.

If your charity adopts a clear policy on dealing with conflicts of interest and that policy is provided to all trustees from the point of their appointment with a clear explanation that the policy applies across the board, a register of trustees’ interests is kept to ensure full and frank disclosure the potential interests, then all trustees are treated equally. Acting in the best interests of the charity means putting aside any personal interests and trustees of all charities have this duty.

Other tips:

• Be clear on the definition of “connected person” – this avoids conflicts inadvertently arising.
• Understand how conflicts should be dealt with – follow procedures in your governing document.
• Manage the conflict – can the conflict be removed or should the trustee absent themselves from key debate and decision making?
• Record how the conflict was handled.
• Remember that the handling of conflicts of interest is not personal!

Announcement

We are very excited to announce Trustees’ Week also marks the launch of HEY Charity, a new podcast dedicated to spotlighting local charity leaders and providing legal insights for the not-for-profit sector.

In partnership with the HEY Smile Foundation, this podcast will delve into the Voluntary and Community sector, featuring interviews with visionary charity leaders who are making a significant impact in their communities. 

The first episode features an interview with Smile’s Chair, Trish Dalby, discussing the vital role of trustees.

"HEY Charity" will be available on all major podcast platforms, including Spotify, Sound Cloud, Mix Cloud, YouTube, and Apple Podcasts.