Should you become a small charity trustee?

Thinking of becoming a small charity Trustee?

Brilliant, you are needed. According to NCVO, 4 in 5 charities have at least one Trustee vacancy, and 3 in 5 feel their Trustee vacancies are holding them back as a charity.

Being a Trustee will be extremely fulfilling, and you can certainly have a huge impact.

The time commitment for Trustees is very manageable when things are going well. However, in challenging situations, small charities have to lean on the Trustees’ help more.

How do we define small charities?

Small charities have an annual turnover of under £1 million. Naturally, within a team of this size, there may only be a small headcount of staff, and potentially a smaller group of Trustees too.

As a board member joining a small charity, your expertise, networks and experience will be highly appreciated. At a charity of this size, you might need to be more hands-on and operational than at a larger charity. However, a benefit of this is that you will have a much clearer idea of how your contributions are making a significant impact.

This is an excellent opportunity if you want to work with the charity on a closer level. But a few challenges may happen during your tenure. These would require you to put more time and effort into the Trustee role than expected.

That doesn’t mean you shouldn’t become a small charity Trustee! But you need to keep the potential challenges in mind and prepare for them.

The potential challenges of small charity Trustees:

Your senior staff member might leave during your tenure

You will need to give a lot more time to recruitment than you can imagine

Hiring the right Chief Executive (and other SLT posts) is a critical decision for the Trustees. It’s likely that some board members will need to play a very active role in this recruitment. Either as a key point of contact for an external recruitment provider or via directly managing the recruitment.

The latter could potentially include writing the advert and communications, speaking to prospective candidates, and spending days interviewing and giving feedback. And then there is the onboarding and induction process to design and manage.

Are you fortunate enough to be able to afford an executive recruitment firm? Contact our dedicated team supporting small charities with leadership recruitment. We will make the whole process much easier for you.

As a small charity trustee, you need to know that you can manage the transition in leadership

Does the organisation have robust systems and processes that can be picked up? Don’t find out too late that the systems only worked for the previous person in post! Ensure in advance that they are easily understood by a new person.

You will also need to support your outgoing senior leader in their departure to ensure a smooth transition for everybody.

What will you do if two or more staff leave?

Small charity Trustees will have to pick up the operations in the short term at least if more than one senior leader leaves. How can you prepare for this possibility? This has the potential to completely derail a charity.

The charity’s finances may not be as healthy as they seem

What are the signs of healthy charity finances?

• Finances have always been stable (you can view several years’ worth of accounts via the Charity Commission)
• The charity has reserves
• Income exceeds expenditure
• Cash flow looks healthy

But even if all the above are good, there may be underlying issues to look out for. You might wish to ask for a conversation with the person leading on the charity’s finances and/or for a copy of the recent management accounts.

You must always ask about accounting methods

Is the charity using cash or accrual accounting and ensuring the separation of restricted funds? The accounts might have been signed off by a firm of accountants year after year. But has anybody really stress-tested whether the charity can sustain a gap in income? Or survive external influences that may disrupt delivery?

Find out if the services are sustainable

Can you see a detailed cost-based analysis for all the charity’s activities? Are the contracts for people delivering services consistent and robust? Is there an appropriate power balance between the organisation and associates or subcontractors? Is the charity over-reliant on some delivery mechanisms, and what are the risks here?

Often, we are too trusting that the people already on the board have considered these questions. You cannot ask too many questions. You will have a powerful window of opportunity as a new Trustee to bring a higher level of questioning.

Asking these questions and getting things on the agenda might ensure you can have the positive impact you want and a good experience as a Trustee.

All things considered, being a small charity Trustee can be an extremely rewarding experience.

Are you looking for a trustee role where you can make a real difference? Find our current opportunities here.