What trustees actually do

This article forms part of the series “Understanding Charities: A Practical Guide for Trustees and the Public”. The series is being published following the introduction of the Charities Act 2026. Its purpose is to help readers better understand charities, the role of trustees and the governance arrangements that help maintain public trust and confidence in the charitable sector. 

By Julio Pisharello

In the previous article, we looked at what makes an organisation a charity and why charitable status brings particular responsibilities. At the centre of those responsibilities are the charity's trustees. 

BUT WHAT DOES A TRUSTEE ACTUALLY DO? 

The answer is broader than attending meetings, approving accounts or helping with fundraising. Trustees are responsible for the overall direction and stewardship of their charity. They must ensure that it remains focused on its charitable purposes, uses its resources properly and is governed effectively. 

Trusteeship can be extremely rewarding, but it is also a position of responsibility. 

SETTING THE DIRECTION 

One of the most important roles of trustees is to provide strategic leadership. 

This means understanding what the charity exists to achieve and deciding how best to pursue those aims. Trustees should consider where the charity is going, what its priorities should be, what resources it needs and what risks and opportunities it faces. 

For a small charity, this may happen relatively informally around the board table. A larger organisation may have employees, budgets, strategic plans and formal reporting arrangements. The underlying responsibility, however, is the same: trustees must remain engaged, understand what the charity is doing and provide effective direction and oversight. 

This does not mean that trustees have to do everything themselves. Many charities rely on employees, volunteers, committees or professional advisers to carry out their day-to-day activities. Functions can be delegated, but overall responsibility cannot simply be handed over. 

KNOW THE RULES OF YOUR CHARITY 

Every trustee should be familiar with the charity's governing document. 

Depending on how the charity is constituted, this might be a constitution, trust deed or articles of association. Whatever form it takes, it is effectively the charity's rulebook. It sets out matters such as the charity's purposes, the powers available to it, how trustees are appointed, how meetings and decisions should be conducted and how the organisation is governed. 

A trustee does not need to memorise every provision. But trustees should understand the document sufficiently well to know what the charity exists to do, what powers they have and how important decisions should be made. 

This matters because good intentions are not enough. Trustees must operate within the charity's purposes and powers and follow the requirements that apply to their decision-making. 

A sensible question for any new trustee is therefore: “Have I read and understood our governing document?” 

OVERSIGHT DOES NOT MEAN DOING EVERYTHING 

A common misconception is that trustees must personally carry out the charity's day-to-day work.  

They do not. 

In many charities, particularly larger ones, operational responsibilities will properly rest with staff or volunteers. A board may also delegate particular matters to a committee or individual. Effective delegation is often essential to running a charity well. 

But delegation does not remove trustee responsibility. 

Trustees should be clear about what has been delegated, to whom and within what limits. They should ensure that they receive sufficient and timely information to understand how the charity is performing and should be prepared to ask questions when something is unclear or does not look right.  

Effective oversight should also be proactive rather than simply reactive: trustees should regularly consider the charity's performance, finances, risks and governance arrangements and identify emerging issues before they become problems. 

This is where oversight and accountability become important. Trustees may not prepare the accounts themselves, run every project or manage every member of staff, but they remain collectively responsible for satisfying themselves that appropriate arrangements are in place for the running of the charity and that it is, in fact, operating effectively. This obviously includes responsibility for its financial affairs and the preparation and submission of proper accounts. 

Being a good trustee is therefore not about interfering in every operational detail. It is about knowing enough to exercise proper oversight and recognising when closer attention is required. 

TRUSTEES ACT TOGETHER 

Another misconception is that particular areas belong only to particular trustees. 

A treasurer may naturally take a particular interest in financial matters. A trustee with legal, safeguarding or professional expertise may contribute specialist knowledge. The chair will usually have additional leadership responsibilities. 

But trusteeship is fundamentally collective. 

Trustees should participate in decisions, exercise their own judgement, ask questions and, where appropriate, challenge constructively. Not every trustee has to agree with every proposal. Healthy boards should be able to debate different views before reaching a decision in the charity's best interests. 

Once decisions are made, they should be properly recorded. For significant matters, the record should make clear not only what was decided but, where appropriate, the principal considerations behind the decision. 

Collective responsibility also means that a trustee should not assume that a matter is someone else's responsibility simply because another trustee has greater expertise in that area. 

To be registered, a Gibraltar charity must also have at least two trustees who are ordinarily resident in Gibraltar, with the majority of its trustees or officers ordinarily resident in Gibraltar. This helps ensure that the charity trustees and the affairs of the charity are under the effective supervision and jurisdiction of the Charity Commission, and, where necessary, of the Supreme Court. 

WHY TRUSTEESHIP MATTERS 

Charities are entrusted with money, assets, time and goodwill so that they can deliver public benefit. Trustees are ultimately responsible for ensuring that this trust is honoured. 

Good trustees do not need to know everything or personally undertake every task. They do, however, need to remain engaged, exercise judgement, ask appropriate questions and seek professional or specialist advice when necessary. 

Effective trusteeship is therefore both active and responsible. It helps a charity remain focused on its purposes, anticipate and manage challenges, use its resources effectively and maintain the public trust on which the charitable sector depends. 

TRUSTEE QUESTION OF THE WEEK

CAN TRUSTEES BE PAID? 

Trusteeship is generally a voluntary role, and trustees should not assume that they are entitled to payment simply for acting as trustees. 

It is important, however, to distinguish between: 

• payment for acting as a trustee; 

• reimbursement of reasonable expenses properly incurred in carrying out trustee duties; and 

• payment for goods or services provided to the charity by a trustee or someone connected with a trustee. 

Different rules can apply to each of these situations. 

The Charities Act allows a trustee, in certain circumstances and subject to specific safeguards, to be paid for providing goods or services to the charity. Among other things, the arrangement must be in the charity's best interests, the amount must be reasonable and the charity's governing document must not prohibit the payment. Any conflict of interest must also be properly managed. 

Payment simply for carrying out the role of trustee is different. The statutory provisions allowing trustees to be paid for providing goods or services to their charity do not, by themselves, allow a trustee to be paid for acting as a trustee. Any such payment must therefore be specifically permitted, for example by the charity's governing document or by authority obtained from the Charity Commissioners or the Supreme Court. 

Trustees considering any arrangement involving payment should therefore check their governing document and the legal basis for the proposed payment before entering into the arrangement. Where Commission authority may be required, or there is any uncertainty about whether a proposed payment is permitted, trustees should consult the Charity Commission or seek appropriate professional advice before proceeding. 

KEY TAKEWAY

Trustees are responsible for the overall direction and stewardship of their charity. They do not have to do everything themselves, but they must remain informed, engaged and collectively accountable for ensuring that the charity is properly governed and continues to pursue its charitable purposes. 

LOOKING AHEAD

Knowing what trustees do leads naturally to the question: what duties do they have when carrying out that role? 

Next week, we will look at the six essential trustee duties under Gibraltar's charity framework, including acting in the charity's best interests, following its governing document, protecting charitable resources, exercising reasonable care and skill and managing conflicts of interest. 

Jose Julio Pisharello is a member of the Gibraltar Charity Commission and has written this series with the aim of helping readers better understand charities, trustee responsibilities and good governance.