Trustees of a Charity should not be paid – what constitutes as being paid?
A24 Charity Law states that a trustee as the custodian of a charity must not benefit or gain any advantage from being a trustee. Instances where this is appropriate are payment of interest incurred from any loans taken out personally, or rent on property. Professional trustees can receive payment for services that the charity requires – for example accounting. In some cases the Charity Commission can be asked to approve benefit such as a gift when someone leaves. Essentially individual members of the board can receive payment as long as the case is demonstrated to the Charity Commission and written into the constitutional document.
Related Questions
- If a charity has staff members who are paid more than the president or CEO or the treasurer or CFO, does the compensation-review provision of the Act apply to them?
- What is the difference between a pension paid through an annuity and a pension paid by the trustees?
- If I am a higher rate income tax payer, can my chosen charity reclaim the higher rate tax paid?
