Can Trustees Be Paid? A Guide for Charities | Adept Accountax, Mitcham

Accounting
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July 9, 2026

Trustees play a vital role in the success and sustainability of a charity. They’re responsible for ensuring the charity is properly managed, achieves its objectives, and uses its funds effectively.

A common question we’re asked by charities across Mitcham and Greater London is: can trustees be paid for their work?

The answer isn’t always straightforward. While trustees are generally expected to act voluntarily, there are certain circumstances where payment may be permitted.

Are Trustees Allowed to Receive Payment?

The general principle is that trustees should not be paid simply for carrying out their duties as a trustee.

Trustees have a legal responsibility to act in the best interests of the charity and must avoid benefiting personally from their position unless there is proper authority to do so.

This approach helps maintain public confidence and ensures charitable funds are used primarily to support the charity’s objectives rather than providing private benefits to individuals.

Can Trustees Claim Expenses?

Yes. Trustees are normally allowed to claim reasonable expenses incurred while carrying out their trustee responsibilities.

Examples of legitimate expenses may include:

Travel costs for attending trustee meetings or charity events.
Accommodation expenses where travel requires an overnight stay.
Printing, postage, and administrative costs.
Other reasonable costs directly related to charity activities.

Expenses should be supported by appropriate records and receipts, and the charity should maintain a clear expenses policy.

When Can a Trustee Be Paid?

In certain circumstances, a trustee may receive payment, but only where it’s legally permitted and properly managed. Examples include:

The charity’s governing document expressly allows trustee payments.
The payment has been authorised by the Charity Commission for England and Wales where required.
The trustee is providing a professional service to the charity (such as legal, accountancy or property services), and the payment is in the charity’s best interests.
The trustee is employed by the charity in a separate role, where this is permitted by the governing document or authorised by the Charity Commission.

In all cases, there must be a clear conflict of interest procedure. The trustee receiving payment should not take part in discussions or decisions relating to their remuneration.

Why Are There Restrictions on Trustee Payments?

The restrictions exist to protect the charity and maintain public confidence. Trustees have a duty to:

Act only in the charity’s best interests.
Manage conflicts of interest appropriately.
Ensure charity funds are used to further the charity’s purposes.
Demonstrate transparency and accountability.

Improper trustee payments can result in regulatory action and may require the money to be repaid.

Good Governance Tips for Trustee Payments

If your charity is considering paying a trustee:

Check your governing document first.
Obtain independent evidence that the payment represents good value.
Record the decision and reasons in the trustee meeting minutes.
Ensure any conflicts of interest are properly managed.
Seek professional advice if you are unsure whether the payment is permitted.

Need Help With Charity Governance in Mitcham & Greater London?

Managing trustee payments, conflicts of interest, and charity compliance can be complex. Professional advice can help trustees make informed decisions and ensure the charity continues to meet its legal and regulatory responsibilities.

At Adept Accountax Limited, based in Mitcham and serving charities across Greater London and the wider UK, we support charities with a wide range of financial and compliance matters, including:

Charity accounts preparation.
Independent examinations.
Trustee responsibilities and governance requirements.
Regulatory reporting to the Charity Commission.

If you have any questions about trustee payments, charity accounting, or need assistance meeting your charity’s compliance obligations, please get in touch with our team. We’d be happy to discuss your requirements and provide practical guidance tailored to your organisation.

Adept Accountax Limited | Charity Accountants & Governance Advisers in Mitcham, Greater London Helping charities manage their finances with confidence. 📞 Call us today | 📧 Get in touch online

Frequently Asked Questions

Can a charity trustee ever be paid a salary? Only in limited circumstances — typically where the trustee is employed by the charity in a genuinely separate role, this is permitted by the governing document, and the arrangement is properly authorised, with the trustee excluded from any related decision-making.

Do trustees need permission before claiming expenses? Trustees don’t usually need special permission to claim reasonable, properly evidenced expenses directly related to their duties, but the charity should have a clear expenses policy in place and keep receipts and records.

What happens if a trustee is paid without proper authority? This can breach the trustee’s legal duties and may be treated as an unauthorised private benefit, which can lead to regulatory action from the Charity Commission and a requirement to repay the funds.

Does the Charity Commission need to approve every trustee payment? Not always — some payments (such as for professional services in the charity’s best interest) may be permitted under the governing document, but higher-risk or unclear cases often do require Charity Commission authorisation. It’s best to check on a case-by-case basis.

This article is intended as general guidance and does not constitute professional or legal advice. Contact Adept Accountax for advice specific to your charity’s circumstances.