Refreshed guidance on decision-making for charity trustees (CC27)

The Charity Commission’s updated guidance on decision-making for trustees (CC27) seeks to improve clarity and accessibility while preserving the core principles that trustees must follow when making decisions. The revised guidance is shorter, written in plain English, and focuses on practical steps to ensure trustees make sound, lawful decisions that serve the best interests of their charity.

The update retains the original seven key principles, now presented in a more concise and user-friendly format:

1 – Act within your powers: Trustees must ensure that any decision they make is within the limits of the charity’s governing documents and aligns with its charitable purposes. Understanding and following the Charity’s constitution and relevant laws are fundamental to this principle.

2 – Act in good faith: Trustees should prioritise the charity’s interests over personal or outside interests. Decisions must always be made in the best interests of the charity, without personal bias or influence.

3 – Being sufficiently informed: To make informed decisions, trustees must gather relevant information, research and seek advice where necessary. This can include consulting stakeholders and obtaining professional input. Trustees must understand the implications of their decisions, including financial, legal and reputational risks.

4 – Take account of all relevant factors: Trustees must consider all factors that could impact the charity, such as its objectives, available resources and the potential effects on stakeholders and beneficiaries. This includes weighing the risks and benefits of different options.

5 – Identify and disregard any irrelevant factors: It is critical for trustees to identify and exclude factors that should not influence their decision, such as personal relationships or unrelated issues. Trustees should ensure that decisions are free from bias or external pressures and are grounded in the charity’s best interests.

6 – Manage conflicts of interest: Trustees must actively manage conflicts of interest. When conflicts arise, trustees should declare them and take appropriate steps, such as recusing themselves decision-making where necessary. Properly handling conflicts helps maintain trust and objectivity.

7 – Make decisions that are within the range of decisions a reasonable trustee body could make: Trustees must exercise reasonable care and skill when making decisions, ensuring they are acting in line with their duties. This includes considering risks, seeking professional advice when needed and ensuring their decision falls within what a reasonable body of trustees would consider acceptable.

This updated CC27 guidance also focuses on improving collective decision-making among trustees and emphasises the importance of maintaining good governance. The goal is to provide trustees with practical advice to make effective decisions, ultimately strengthening the governance and operational success of charities.

Guidance: https://bit.ly/4dZCUCG

Guidance: https://bit.ly/3YBnpfC