The Charity Commission is today publishing updated guidance for
charity trustees on conflicts of interest, with research by the
regulator suggesting many trustees are unsure how to recognise a
conflict.
The redesigned guidance helps trustees identify and manage both
financial conflicts – where a trustee or someone connected to
them stands to gain money or other value – and conflicts of
loyalty – where obligations to another person or organisation
could influence a trustee's judgement.
Cases involving unmanaged conflicts may be
rising
It comes as figures reveal a sharp rise in cases of alleged
private benefit abuse at charities, many linked to unmanaged
conflicts of interest.
In its first ever Charity Sector Risk
Assessment, published last year, the Commission found that
compliance cases involving the alleged abuse of charitable status
for private benefit rose had risen by almost a quarter (23%) in a
single year. Figures to be published later this year suggest that
the upward trend may be continuing.
Conflicts involving trustees and their private interests were a
recurring factor in many of these cases, representing an ongoing
risk to the public's trust in the wider charity sector.
While the total number of relevant cases still represent a very
small percentage of charities overall, the regulator is keen to
help trustees mitigate against the risks of such problems
occurring.
The report found that conflicts involving trustees and their
private interests were a recurring factor in many of these cases,
and represent an ongoing risk to the public's trust in the wider
charity sector.
The updated Charity Commission guidance for trustees, known as
CC29, is intended to help trustees identify and manage conflicts
of interest and, in doing so, protect their charities from
harm.
Many trustees unaware of what constitutes a
conflict
Analysis drawn from the Commission's casework further suggests
that most unmanaged conflicts of interest arise from or are
facilitated by a lack of awareness, rather than deliberate
wrongdoing.
Trustees, most of whom are volunteers, are often unable to
identify a conflict when it arises and therefore fail to take
steps to protect their charity's assets or reputation.
This is confirmed in the Commission's published research with
trustees, which found that many trustees are unsure about how
to recognise and deal with a conflict.
The updated guidance is shorter, clearer and includes common
examples of situations in which a conflict of interest can arise
in a charity.
Rachel Wenstone, Assistant Director of Policy at the
Charity Commission, said:
The vast majority of trustees give their time freely and
generously, and we want to give them clear, practical guidance to
help them do their jobs well.
Our refreshed guidance will enable trustees to identify and
manage conflicts of interest when these, to best protect
themselves and their charities.
This matters -– the trust that the public place in charity can be
shattered by the perception that some amongst those entrusted to
protect a charity may be abusing it for personal gain.
Trustees who fail to manage conflicts of interest, even
unintentionally, risk becoming part of that problem, and our
guidance will help them to avoid this.
The Commission stresses that decisions made without properly
managing a conflict of interest may be legally invalid, which may
result in the charity losing money and the trustees being deemed
jointly liable to cover the loss from their own money.
The Commission may also consider it as evidence of misconduct or
mismanagement.
ENDSNotes to editors
-
The Charity Commission is the independent, non-ministerial
government department that registers and regulates charities
in England and Wales. Its ambition is to be an expert
regulator that is fair, balanced, and independent so that
charity can thrive. This ambition will help to create and
sustain an environment where charities further build public
trust and ultimately fulfil their essential role in enhancing
lives and strengthening society. Find out more about the Charity
Commission.
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The refreshed CC29 guidance is available at gov.uk
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The Charity Commission's Charity Sector Risk Assessment 2025
is available at: Charity Sector Risk
Assessment 2025 - GOV.UK
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The Commission's research into trusteeship can be found
at: Research with
trustees: 2025 - GOV.UK
