Regulator reminds trustees to only act in the best interests of their charity
Trustees have been reminded of their legal duty to act only in the best interests of their charity, and the regulator’s expectation that conflicts of interest are dealt with effectively.
In a report on an operational compliance case into animal charity Tag Pet Rescue, the Charity Commission has said trustees must ensure they do not put themselves in a position where their personal interests clash with their duties.
The commission got involved after complaints alleging unauthorised payments were being made to trustees of the charity. It was later determined the payments were unauthorised as the charity’s governing document only provided for one paid trustee, but the payments were made in good faith and the charity had benefitted from them.
“Making payments to a trustee, without proper authority, is a breach of trust and could result in payments having to be repaid to the charity by the recipient trustee,” the commission said. “Where we are satisfied that the payments were made in good faith in the interests of the charity, and that the charity has benefitted from making the payments, then we will not normally expect the trustees to seek repayment of the unauthorised benefit.”