The responsibilities of Trustees for Charitable Trusts have grown over the years and this can be evidenced by legislation, such as the Trustees Act 2000. Most Trustees are now well versed in these requirements and the way that they should be administered to ensure that the Trust that they act for receives quality advice and guidance for its investments.
Many existing Trusts are historic and accumulate significant assets over time. It is the Trustees responsibility to invest and manage these assets in the best interests of the Trust and the beneficiaries. The Charities Commission provides investment information to Trustees as indicated in the Charities Commission document CC14 ‘Investment of Charitable Funds: Basic Principles’.
On a regular basis, Trustees review the investments under their control and consider some of the following points:
• An overview of the current economic climate.
• The allocation of scheme assets, including its diversification across asset classes.
• The suitability for their charity of an investment.
• The need to rebalance any investments in light of the needs of the scheme, such as capital growth or income.
• The future liabilities to the scheme for specific projects taking account of any endowment requirements the Trust may have.
• The fees that are being paid to advisers.
This list is not exclusive, however it does provide a guide to some of the requests that Churchouse Financial Planning has received in providing advice to the Trustees of Charitable Trusts to help them with their statutory duty of care.
As Independent Financial Advisers (IFA) and Chartered Financial Planners we are well placed to help you and your fellow Trustees with your review process of your Charitable Trust to provide financial advice and expertise to meet the future needs and requirements of the arrangement. We can be contacted on 01483 578800
Churchouse Financial Planning Limited is Authorised and regulated by the Financial Services Authority
Monday 1 February 2010
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