Introduction

Whether a charity is small or large, working alone or in partnership, the answer to the question ‘Who’s in charge?’ should always be ‘the charity trustees’.

The law says that a charity must be run by charity trustees acting in the interests of the charity. That principle also points to good working practice. Where charity trustees are not clearly in charge, a charity may become unmanageable, lose sight of its charitable purpose and charitable assets can be put at risk. A charity’s reputation may suffer, and it is likely to lose public support and confidence.

This guidance derives from our experience as Scotland’s charity regulator. Over the last few years, we have seen how uncertainty, ambiguity or disagreement about who is in charge of a charity has caused problems for individual charities. 

Questions about ‘who’s in charge’ will become even more important as the environment within which charities work becomes increasingly complex. More charities are working closely with bodies that are not charities. Some charities receive funding from government bodies or from commercial companies; some enter into contracts with local authorities to provide services; others undertake activities formerly carried out by local or central government. Charities’ internal structures may become more complex as they expand or respond to differing contexts and demands. Some may find that ambiguity about who is in charge has unwanted consequences such as confusion over perceived identity or, at a practical level, a reduction in public donations.

These issues can be difficult for charities to navigate in practice. Also, bodies working with charities may not be aware of all the characteristics of charities, their role, and the duties that charity trustees must fulfil. This guidance is intended to help charities protect their charitable status and implement good governance, and help other bodies working with charities to do so in a way which is mutually productive but respects the charity’s position.