Hello Auditor

What are the duties of trustees in a charitable trust?

Fiduciary Responsibility

  • Act with utmost honesty, integrity, and loyalty in managing trust affairs.
  • Must avoid conflicts of interest and act solely in the interest of the trust and its beneficiaries.

Execution of Trust Objectives

  • Ensure that all activities align strictly with the objectives mentioned in the trust deed.
  • Initiate programs, projects, and services that reflect the charitable goals of the trust.

Management of Trust Property

  • Maintain and protect the trust’s movable and immovable assets.
  • Ensure assets are used solely for charitable purposes without personal gain or misuse.

Maintenance of Accounts and Records

  • Keep accurate books of accounts reflecting all income, expenditure, donations, and asset transactions.
  • Preserve records, receipts, bills, and financial statements for audit and inspection.

Compliance with Legal Requirements

  • File annual returns and income tax returns as required under the Income Tax Act.
  • Ensure registration under Sections 12A and 80G remains valid and renewed if necessary.
  • Adhere to the rules under FCRA if foreign donations are received.

Appointment and Coordination with Staff

  • Appoint employees, volunteers, or agents as needed for daily operations.
  • Delegate responsibilities while retaining ultimate oversight and accountability.

Reporting and Transparency

  • Submit regular reports to the Charity Commissioner or other regulatory authorities.
  • Maintain transparency in fund utilization, trustee decisions, and program implementation.

Protection of Beneficiary Interests

  • Act in good faith to protect the rights and welfare of beneficiaries.
  • Address grievances or disputes concerning trust services and ensure fair treatment.

Conduct of Trustee Meetings

  • Organize periodic trustee meetings to review performance, discuss new initiatives, and make decisions.
  • Record minutes of meetings and maintain proper documentation of resolutions passed.

Amendments and Strategic Planning

  • Propose amendments in the trust deed if needed, as per laid procedures.
  • Strategize long-term growth, fundraising, and public outreach of the trust.

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