When your charity’s beneficiaries become trustees
For charities who want to improve decision-making and service quality involving beneficiaries (users) at board level can be beneficial. However, it requires careful structuring to ensure governance remains robust and decision-making remains objective.
Although the Charity Commission has withdrawn Users on board: beneficiaries who become trustees (CC24) with the more general guidance contained within Finding and appointing new trustees (CC30), which focused on the benefits and considerations around involving users at board level, the underlying principles remain embedded within.
Why the guidance matters
Charities constantly strive to increase their impact on beneficiaries, and including beneficiaries in governance can have real benefits, by:
- Strengthening understanding of user needs
- Improving relevance and quality of services
- Building trust and transparency
- Providing a different viewpoint to the board
However,
However, these benefits are only realised where governance risks are actively managed.
Who counts as a user trustee
The concept of “users” is broad. It can include direct beneficiaries, professionals supporting beneficiaries, and others who rely on a charity’s services (for example, carers, guardians and relatives).
Trustees may be referred to as committee members, governors, directors, or similar, depending on the governing document.
Involving users in the right way
When considering appointing user trustees, boards should:
- Focus on board needs first. Appointments must be driven by skills and governance requirements, not representation alone;
- Assess suitability carefully. It won’t suit every charity, this model will not suit every charity, particularly where conflicts are likely to be significant
- Apply the same legal standards. User trustees carry the same duties and liabilities as any other trustee
Key governance considerations
Common governance challenges include:
- Conflicts of interest, particularly where trustees are closely connected to beneficiaries receiving services
- Informal or unstructured recruitment, leading to gaps in skills or independence
- Insufficient support, resulting in trustees being unable to fully discharge their responsibilities
Boards should therefore be particularly mindful of:
- Documenting conflict decisions clearly
- Maintaining independence in key decisions (e.g. remuneration, service provision)
- Evidencing that all trustees, regardless of background, are able to act in the charity’s best interests
When user trusteeship works well
Beneficiary involvement is most effective when:
- The charity’s services affect beneficiaries’ daily lives
- Lived experience is central to shaping services
- Recruitment is structured and aligned with board needs
- Adequate support and governance structures are in place
How BKL can help
Our charities and not-for-profit specialists advise organisations of all sizes on governance and board composition. We help trustees assess board effectiveness, recruitment strategy and governance risks, combining technical expertise with practical experience as charity trustees and volunteers, including through BKL’s own charitable foundation.
To discuss how we can help, get in touch with Ed Passmore using the form below.