At the heart of being a charity trustee is passion, a belief in the cause and a commitment to making a difference, but passion alone isn’t enough. Effective trusteeship also requires close attention to financial governance: understanding the systems, overseeing compliance, and asking the right questions.

While some trustees may bring professional finance experience, good governance should be a collective responsibility, and financial oversight should never rest solely with the treasurer or finance lead. Every trustee has a role to play.

Thankfully, to carry out your trustee duties and remain abreast of the organisation’s financial governance, you’re not required to morph into an accountant overnight, or, in fact, at all. It is much more about asking the right questions, remaining curious and building your confidence.

Here are some tips we’ve pulled together to help you do this:

Know your duties

The Charity Commission’s CC3 document is invaluable and should be your go-to guide. It sets out your legal responsibilities: from acting in the charity’s best interests to managing resources responsibly, and much more. Whether you’re new to the board or a seasoned trustee, CC3 should form part of your induction and be revisited annually.

Make use of the support around you

Stay informed with Charity Commission newsletters, tap into training opportunities across the sector, and don’t hesitate to ask questions of your organisation’s advisors. The best trustees are curious, they ask, learn, and challenge constructively.

Own the annual report and accounts

The annual report and accounts aren’t just regulatory documents, and they don’t belong to your auditors. They’re yours. Think of them as a shop window, showcasing your charity’s work and impact. To get this right, you’ll need to understand and take ownership of the report.

Understand systems and controls

Strong financial controls are essential, both to prevent problems and to detect them early should they occur. This means:

• setting clear financial objectives and reviewing progress
• ensuring finance teams are well-resourced, trained, and supported
• receiving regular and timely financial information

If your board meetings don’t allow enough time to properly engage with financial information, then change the format or frequency. Trustees need access to the right information, at the right time, and if you find that you’re not getting it, don’t hesitate to ask.

Safeguard against fraud

Every board should carry out a fraud risk check at least once a year. The Charity Commission’s CC8 document includes a practical checklist that can support this process. Ask yourself:

• What are our fraud prevention measures?
• Are they understood by staff, volunteers, and trustees?
• How often are they reviewed – and do they reflect modern cybercrime risks?
• Do we have a clear fraud response plan and whistleblowing procedure?
• Have we carried out pre-employment checks on staff? 

Care about the team around you

Behind every organisation are its people. A strong finance function depends on a team that isn’t overwhelmed nor under-resourced. Burnout can lead to misguided decisions (see fraud above), so trustees must consider wellbeing, workload, and whether the team has what it needs to do the job properly, especially given the current pace of digital transformation.

An internal skills audit can help ensure you’ve got the right people around the table. Consider the combined experience of your board and professional advisors. For finance lead trustees it’s vital to bring the rest of the board with you, interpreting and communicating financial information clearly and anticipating the questions others may have.

Invest in the relationship with your auditor

Ensuring private time between the board of trustees and the auditors is vital and a matter of best practice. It provides the auditor with the opportunity to raise any concerns and provides the trustees with a platform to ask candid questions of the auditor.

Of course, there may come a time when you need to review those auditors and advisors. Are they still the right fit?

Remember, you don’t need to be an accountant to be an effective trustee, but you do need to be engaged, informed, and proactive. Financial governance should be a shared commitment and when all trustees step up, ask questions, and support robust systems, the whole organisation benefits.