Guide to Trustee Expenses: Understanding Charity Commission Guidance CC11

Being a trustee is a rewarding role, allowing individuals to contribute to the governance and success of charitable organisations. However, trustees often incur costs while fulfilling their duties. Charity Commission guidance CC11 provides a clear framework to ensure these expenses are managed appropriately, maintaining transparency and trust in the charity’s operations. Here’s a guide to help you navigate trustee expenses.

What are trustee expenses?

Trustee expenses are out-of-pocket costs incurred by trustees when performing their duties for a charity. These are not payments for services or remuneration, but reimbursements for specific costs.

Examples of Legitimate Trustee Expenses

Expenses that trustees can claim include:

Travel costs: Public transport fares, mileage for car travel, or taxi fares when appropriate.

Accommodation and subsistence: Costs for overnight stays, meals, or refreshments during charity-related activities.

Childcare or care costs: Covering childcare or care for dependents to enable attendance at meetings.

Communication costs: Telephone, postage, or internet charges related to charity business.

Training and conferences: Attendance fees and associated travel for events beneficial to the charity.

Where it is unclear as to whether or not an expense should be repayable, it may be necessary to seek advice from the Charity Commission.

Ensuring proper management of expenses

To maintain accountability and avoid disputes, charities should:

Have a clear policy: Develope a written expenses policy outlining what can be claimed, the process for reimbursement, and required documentation.

Budget for expenses: Include a realistic estimate for trustee expenses in the charity’s annual budget.

Keep accurate records: Maintain detailed records of all claims, supported by receipts or invoices.

Use approved processes: Ensure claims are reviewed and approved by someone other than the claimant, such as the treasurer.

Common misunderstandings

Trustees cannot be paid: While trustees can’t usually be paid for their services unless the governing document allows it or the Charity Commission approves it, they can and should be reimbursed for legitimate expenses.

Claiming expenses is optional: Some trustees choose not to claim expenses. While this is a personal decision, charities should still encourage trustees to claim to avoid disadvantaging those unable to absorb costs personally.

Potential issues to avoid

Unjustified claims: Avoid claims for non-charity-related activities or excessive costs.

Insufficient documentation: Claims without receipts or proper records can undermine transparency and may lead to financial scrutiny.

Inadequate oversight: Ensure no single trustee has unchecked control over expenses approval.

Final thoughts

Trustees play a vital role in the success of charities, and reimbursing their expenses ensures fairness and inclusivity. Following the guidance in CC11 helps charities manage expenses transparently, maintaining public trust and meeting legal obligations.

At Carpenter Box we can assist trustees in understanding their duties and responsibilities. If you would like to discuss anything further please get in touch with a member of our Not For Profit team on 01903 234094.