Top 10 tips for charitable trust boards
Adapted from a resource provided by Parry Field Lawyers
1. Govern don’t manage
Avoid getting into too much of the detail of how the trust operates. You shouldn’t be talking about operational matters at the board table. If you board is made up of staff involved in the business, consider holding a separate meeting for day-to-day issues.
Resource: New to governance
2. Set clear agendas
Have a clear defined standing agenda that then has key points added. Don’t let meetings turn into a conversation that starts “what are we talking about again”?
Circulate agenda in advance along with relevant pre-reading. Read it.
Resource: Board meeting resources
3. Board charter
This is a document that can provide overall guidance – set out role, relationships, how decisions made, procedures, inductions, committees.
Consider having a Board Charter and clearly set guidance out.
Resources:
Committee sample charter templates
4. Know your trust's purpose
It is surprising how many Trustees are unclear on their actual purpose and maybe have never even read the Trust Deed.
Be clear on what the purpose is and let it guide decision making at the board table.
5. Know the purpose behind the purpose
Think about and understand how the day to day and month to month work is of value – know your “why”. In many cases there are deep needs which are being met by each trust
Also see Simon Sinek's Ted Talk: How great leaders inspire action
6. Plan ahead
Think long term not short term – discuss finances, properties, succession for your board, strategy, growth and relevancy of the trust over longer time frames.
Resources:
7. Trust board size
Our recommendation for trust boards is an optimum of four to six trustees. Many trust boards have more but participation inevitably drops when there are more than eight members. This results in a drop of enjoyment, less sense of contribution, and also reduces the quality of decision making because discussion is more limited.
8. Increasing need for professionalism as a Trustee
There is a growing need to create a culture of continuous improvement or learning within the Trusteeship itself. Have a view that you can never stop learning. Governance is a high calling.
Trustees ought to be encouraged to read material that takes them a bit further in their journey of understanding what it is to a Trustee and how to contribute.
Also see IoD's website for resources, governance development opportunities and board evaluation services.
9. Who should be on a trust board?
In a small charity this may be a luxury but the ideal answer is someone who has both a strong belief in the vision and purpose of the Trust as well as a particular skill set that the Trust most needs.
Consider skill sets around tangible matters eg finances, property matters, operational issues but also the soft issues – the ability to think strategically, a high EQ and focus on building a great team.
Resources:
What makes a good board? Information on board composition, balance, and culture
Getting on board with diversity.
10. The right chair?
Good outcomes are largely the result of effective meetings and effective meetings are not possible if the chair is not suited to the task.
A good chair creates an environment of respect, fair opportunity to speak, but without restricting candour and ensuring discussions do not go on any longer than necessary and a clear conclusion is reached.
Also, if the organisation is large enough to have employed staff then the relationship between the Chair and the Chief Executive is a critical one.
Resource: Director competency framework