Information on charity trustee remuneration and the conditions for remuneration.
The 2005 Act states that remuneration of charity trustees may be
any direct or indirect payment or benefit, including a benefit in
kind. It can be for:
- being a charity trustee
- a contract of employment
- for other services to or on behalf of the charity.
Charity trustees must act in the interest of their charity and
any personal benefit, whether direct or indirect, must be treated
with caution.
Section 67 of the
2005 Act states that a charity trustee
must not be
remunerated from charity assets unless certain conditions are
met.
Conditions for remuneration
The conditions which allow remuneration are:
- the maximum amount of the remuneration is set out in a written
agreement
- the maximum amount of the remuneration is reasonable in the
circumstances
- the charity trustees are satisfied, before entering the
agreement, that it is in the interest of the charity for that
person to provide those services for that amount
- immediately after entering into the agreement, less than half
of the total number of charity trustees are directly or indirectly
remunerated
- the charity's governing document does not prohibit the
remuneration of charity trustees.
There are some exceptions to meeting the above remuneration
conditions. Further information on these exceptions is
available from our
Guidance for Charity Trustees.