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| We’re interested in having some young people on our trustee board – is there anything we should be aware of? Leona Roche of Bates Wells & Braithwaite clarifies the legal requirements depending on whether your organisation is a charitable company, a Charitable Incorporated Organisation (CIO), charitable trust or unincorporated charity. |
Pretty much anyone can become a trustee. No special qualifications are needed, though some people are disqualified from being a charity trustee (for example, anyone convicted of a dishonesty offence or declared bankrupt). However, there is a minimum age limit which varies depending on the legal form of the charity.
What is the age limit for charitable companies?
The directors of a charitable company are its charity trustees. Since October 2008, the minimum age for directors has been16. This means that the trustees of a charitable company can be as young as 16.
And what about the new CIO?
When the Charitable Incorporated Organisation (the “CIO”) eventually becomes available, it is expected that it will also be allowed to have trustees who are aged 16 and over.
Is the position the same for trusts and unincorporated associations?
No, under trust law, the minimum age for trustees is 18. This means that someone under 18 cannot be a trustee of a charitable trust or a charitable unincorporated association. Any attempt to appoint someone under 18 as a trustee will therefore be legally invalid.
Why have an age limit?
The legal position relating to minors and their capacity to take on legal obligations is not straightforward and it would cause complications in practice if minors were able to become charity trustees of unincorporated charities. There are certain things that minors cannot do because they are prohibited by law, for example owning a legal estate in land or entering into most types of contracts.
Unlike companies, unincorporated charities are not separate legal persons in their own right and they therefore exist and act through their trustees. For example, any property of an unincorporated charity would be held in the name of its individual trustees (on trust for the purposes of the charity). If the trustees all happened to be minors, they could not own any property in this way on behalf of the charity.
Are there many young people on charity boards?
No, young people are generally under-represented on boards of charities. There are nearly 850,000 charity trustees in England and Wales, but less than 4,500 of these trustees are under 25.
But don’t young people have something to offer?
Yes, of course! Young people can make a great contribution to the running of a charity. Their enthusiasm, experience and unique perspective mean they have much to offer. This is especially true where the charity is “for” young people. The Charity Commission supports youth charities that want to have some under 18s on their board to ensure user/beneficiary representation.
What if we want under 18s on our board?
If you have decided that it is important for your charity to have trustees who are under 18, then your charity must be formed as a company limited by guarantee. If you are an existing charitable company, it is important to check your Articles of Association to make sure there is no prohibition on under 18s being directors. If so, this restriction would have to be removed by amending the Articles.
The Charity Commission currently recommends that not more than half of a charity’s trustees should be under 18. In light of this, you may wish to consider putting a limit on the number of trustees who can be under 18. What proportion is appropriate will depend upon the nature, size, and activities of your charity.
If a young person is joining your board, they will need a good induction programme to help them understand their trustee responsibilities and the liabilities involved. Although this is true of all trustees, it is likely that young trustees will benefit from ongoing support and perhaps even a mentor to help them get to grips with their role as a charity trustee.
Are there any other ways of involving young people?
As an alternative to (or even in addition to) having young people on the trustee board, young people can be involved in the governance of a charity in advisory roles or as representatives of young people or users/beneficiaries.
A young persons’ forum could be created which gives non-binding advice or recommendations to the board. Or a charity could choose to have more ad hoc informal discussions with young people about the charity’s services.
Another great way of involving young people is of course through volunteering. Their enthusiasm and energy mean that young people are very effective at fundraising. Young people can also volunteer their skills and free time to support a charity’s services or particular projects.
by Leona Roche, Bates Wells & Braithwaite London LLP. www.bateswells.co.uk