The chief executive as a Trustee

The chief executive is not usually also a trustee of the charity. This is because of restrictions placed on trustees receiving benefits from the charity. These restrictions include situations where a trustee is also a paid employee of the charity.

Sometimes a chief executive does serves as a trustee of the same charity. However, this arrangement is not usual in charities, because the dual role of chief executive and trustee is not straightforward. The dual role can bring conflicts of interest, because the individual will have the same duty as other trustees to act in the best interests of the charity at all times and avoid conflicts with their personal interests.  

For example, the chief executive might be best placed to advise trustees on significant issues surrounding staff issues. However, if the chief executive also acts as a trustee they would be restricted in providing such advice because of the conflict of interest involved.

A charity will need authority to allow a chief executive to act as trustee: this often involves seeking prior Charity Commission approval either for a particular chief executive to serve as a trustee or for a permanent change to the governing documents to allow all future chief executives to be trustees. Charities considering this arrangement should consider the benefits it would bring compared to the chief executive remaining in a non-trustee, non-voting, advisory capacity. 

If the arrangement is approved, trustees must follow guidelines to manage conflicts of interest between the individual’s paid role as chief executive and their trustee role.

If a trustee resigns to take up a paid chief executive position in the same charity, approval from the Charity Commission (or authorisation in the governing document) will also be needed. This is because the trustee might have been in a position to influence the terms and conditions of the paid position or their selection for it.

Detailed guidance is available from the Charity Commission.