General Legal Requirements of Governing Bodies

The legal obligations of governing bodies of charitable institutions vary depending on where and how they are registered. The key legislation for registered charities is:

• In England and Wales: The Charities Act 2011
• In Scotland: The Charities and Trustees Investment (Scotland) Act 2005
• In Northern Ireland: The Charities Act (Northern Ireland) 2008

Community Interest Companies (CICs) are covered by The Companies Act 2006. 

In general, governing bodies of charitable institutions are legally required to:

• Act in the best interests of the institution;
• Identify and address potential conflicts of interest;
• Ensure funds and assets are used in a way that meets the purpose for which they were given;
• Use funds reasonably and sensibly in line with the governing documents
• Meet legal accounting and reporting requirements; and
• Ensure people fundraising on your behalf send all money raised to the institution.

Further considerations specifically for charity trustees in Northern Ireland

The duties and responsibilities of trustees regarding fundraising all fall under the general duties of charity trustees to be responsible and accountable for their charity, and to act in the best interests of the charity. Trustees also have an overall duty to control and protect the charity, its beneficiaries, assets, and reputation.

Further Legal Requirements for Fundraising Activities

Your fundraising activities may also be subject to the following legislation:

• To ensure money or property received has not been gained through criminal behaviour, in line with the The Proceeds of Crime Act 2002.
• To protect the health and safety of employees, volunteers, and the public, under relevant Health and Safety legislation:
  • Health and Safety at Work etc. Act 1974
  • Health and Safety at Work (Northern Ireland) Order 1978
  • Management of Health and Safety at Work Regulations 1999
• To meet any legal reporting requirements which apply to your fundraising activity, such as The Charities Statement of Recommended Practice (SORP).

Guidance on Responsibilities of Charity Trustees

England and Wales

Charities registered in England and Wales should consult: 

• Charity Governance Code
• Charity fundraising: a guide to trustee duties (CC20)
• The essential trustee: what you need to know, what you need to do (CC3). 

Scotland

Charities registered in Scotland should consult: 

• Scottish Charity Regulator’s (OSCR’s) Fundraising guidance for Charity Trustees for information on the legal requirements of Scottish charity law in relation to fundraising and the duties of charity trustees; and
• OSCR’s Guidance and Good Practice for Charity Trustees
• OSCR's Scottish Governance Code.

Northern Ireland

Charities registered in Northern Ireland should consult: 

• The Charity Commission for Northern Ireland’s (CCNI’s) guidance Fundraising for Charities
• CCNI’s Fundraising at a Glance – a guide for charity trustees and Fundraising at a Glance – a guide for members of the public provide information on legal requirements and good practice in relation to fundraising and the duties of charity trustees.
• CCNI’s Running your Charity guidance  sets out the principles and main elements of good governance for the trustees of charities in Northern Ireland.

Organisations established for philanthropic and benevolent purposes

The governing bodies of non-charitable voluntary organisations established for philanthropic and benevolent purposes will have similar duties to those set out above in relation to charities.

Guidance on Accounting Requirements

• Charity Commission for England and Wales: Charity reporting and accounting: the essentials November 2016 (CC15d)
• Scottish Charity Regulator (OSCR): Charity accounting
• Charity Commission for Northern Ireland: Charity reporting and accounting: the essentials
• Fundraising Regulator: The Charities (Protection and Social Investment) Act 2016: Fundraising reporting requirements guidance