The pandemic saw charities of all sizes show remarkable resilience and agility in dealing with their new circumstances. Research by the Scottish charities regulator OSCR showed that 77% changed the way they deliver their services and 59% changed their approach to finance.
As the crisis wanes, the realities of the ‘new normal’ may require you to adapt again. As you do so, good governance must underpin all your decisions.
Making decisions
Decisions about how you operate post-pandemic should be taken collectively by trustees.
Being sensible and collaborative will be key to helping your organisation successfully navigate the challenges. This sounds obvious, but the Charity Commission, the English charities regulator, said recently that, post-Covid, ‘disputes in charities seem to be increasing in volume and, in some cases, in ferocity’.
With all decision-making, it’s important to show that matters are being dealt with, so keep a record of everything considered and minute any major decisions.
There may also be concerns about having enough people to form a quorum. Your governing document can be amended to include virtual participation or to change the number of people required to make decisions and if you choose this route, you should notify OSCR of the change. If you are unsure of how to resolve this issue, seek legal advice.
Trustee meetings and AGMs
During the pandemic, OSCR confirmed that trustee meetings could be held virtually, whether or not you have specific provisions in your charity’s governing document to allow this.
However, the flexibility of having virtual participation is likely to become permanent a as society reverts to a mix of in-person and hybrid working. It is therefore advisable to amend your constitution to specifically include provisions allowing virtual meetings of both trustees and members.
When deciding how to hold meetings in future, decisions should be minuted to demonstrate good governance, and governing documents may need to be updated.
Trading subsidiaries and trustee liability
Many charities operate trading subsidiaries to generate funds; however, even with lockdown over, some of these may no longer be financially viable.
Trustees have a duty to put the interests of the charity first. If a trading subsidiary is likely to be operating at a loss with no benefits or return for a lengthy time, charitable assets could be put at risk. Decisions about the future of trading subsidiaries must be made in the best interest of the charity and everything considered must be noted for reporting.
This is only the tip of the iceberg when it comes to some of the issues and challenges you may be facing as a charity trustee. Maintaining good governance will help ensure a better future for your organisation, far beyond the exit from the pandemic.
