In this episode of the Nonprofit Bookkeeper, Aishat discusses the complexities surrounding payments to trustees in UK charities. She explains the legal framework that allows for such payments under certain conditions, the importance of transparency, and the potential risks involved. The conversation also covers reimbursements for expenses and the need for careful documentation and justification when considering salaries for trustees. Aishat emphasizes the importance of aligning decisions with the charity's mission and maintaining integrity within the organization.

KEY TAKEAWAYS

• Trustees are responsible for overseeing a charity's operations.
• Payments to trustees are allowed under specific regulations.
• Charities must document agreements and ensure market rate compliance.
• Transparency is crucial when discussing trustee compensation.
• Consent from the Charity Commission is necessary if payments are not allowed by the constitution.
• Potential conflicts of interest must be managed carefully.

EPISODE RESOURCES

Rules on paying trustees: Payments to charity trustees: what the rules are - GOV.UK (www.gov.uk)

ABOUT YOUR HOST

Aishat operates her own bookkeeping and accounting services practice – BAnC Services which focuses primarily on serving non-profits. Before founding her practice, she dedicated over two decades to the non-profit sector.

With her podcast, Aishat shares practical insights and expertise to streamline financial management for non-profits; and shines a light on the often unseen & unheard efforts that uphold the delivery of a non-profit’s mission.

Beyond her professional endeavours with non-profits, Aishat is deeply committed to supporting single mothers with navigating financial management challenges and is the author of "Money Solutions for Single Mums". She also champions financial literacy among young black adults and thrives in discussions about money management.

Work with Aishat: www.bancservices.co.uk

CONNECT

Instagram

TikTok