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Trustee and Charity Organizations - Assignment Example

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Summary
The Charities Act of 1993 and the Trustee Act of 2000 has clearly defined the operation system for charitable organisations and the role of Trustees. The Charity Commission has been duly created to carry out the provisions of the mentioned laws and to ensure that none of the provisions will be violated and that the organisations' goal to serve the public will be upheld…
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Trustee and Charity Organizations

Download file to see previous pages... According to the Trustee Act of 2000, Trustees are defined as people from all walks of life who are nominated or appointed to serve as leaders of charitable organisations. They have the ultimate responsibility of running these organisations and the scope of their work include planning the strategic future of the charity and its work, responsible for the charity's mission, for its property, finances, employment of any staff or volunteers, involvement in policy decisions within the charity, in the local community, regionally or nationally. Every Trustee will hold a role or a specific position in the charity such as being the Secretary or Treasurer or the Chairperson or Head of Trustees. There is nothing to be gain in terms of financial and other physical gains except for personal fulfillment and growth, and the responsibility and liability is also great. They must ensure that the charity's documents and existence are in full compliance with the rules and regulations of the national governing board. They hold the biggest responsibility of all because the framework of operations will fully depend on them. The success of their planning, the consistency of their monitoring and the collective wisdom that they apply in their evaluation and the foresight to use it appropriately in planning future agency directions is no laughing matter. It requires dedication and purity of intentions to do this job well. Their names and individual reputations are also reflective of the organizations' potential, capacity, and integrity so that any questionable act on their part could make or break the organization that they represent. Any misuse of funds and assets, even the slightest, could be detrimental to the sustainability of the organisation. Their kind of leadership will be reflected on the policies that they approve and implement, which will later dictate the general heart and attitude of the staff that will work for the agency.

Every decision, every move, however, requires the agreement of at least the majority of the Board of Trustees or a predetermined number of what is considered a quorum before an act, or a decision will be implemented. And in so saying, the Trustee who is conducting all trustee duties alone without consulting the other trustees and writes letters and do other transactions in this manner, is obviously violating the Law of Trustees. He is liable and will be mandated by law to pay from his / her own pockets if any transactions that he / she has made will endanger the reputation and will risk the organisations' assets and funds. The Board of Trustees is liable, as a group, to any consequences that will come up from the group's decisions, hence the need for a quorum before any act, and the need for a written document as supporting evidence of the collective action of the group.

Another provision of the law that will be given emphasis in this case is section 5 under the Trustees and their Responsibilities which states that Trustees should act with integrity, and that they must avoid any personal conflicts of interest or misuse of charity funds or assets. They must avoid undertaking activities that might place the charity's endowment, funds, assets or reputation at undue risk (Section 8). Which is another clear proof that the Trustee in ...Download file to see next pagesRead More
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