Recently, more charities are discussing the possibility of paying trustees. As the role becomes increasingly complex, some charities see trustee remuneration as a way to attract skilled professionals, enhance board diversity and improve overall governance.

But choosing whether to introduce payment is far from straightforward. The decision carries legal responsibilities, reputational implications and financial consequences which every leadership team must weigh-up carefully.

So, how do you secure board expertise without denting donor trust? The guide below sets out the legal rules, core benefits, risks and real‑world examples, as well as a practical checklist for weighing trustee payment.

Charity Trustee Payment Rules Under UK Law

UK law starts with a clear rule. Trustees give their time and skills for free. This “no‑profit” principle sits in the Charities Act 2011 and long‑standing trust law, and protects public confidence.

You can pay a trustee only when one of the following routes gives formal authority:

• Governing document – A clause allows reasonable trustee pay.
• Statutory power – Section 185 of the Charities Act lets a trustee charge for extra services or goods beyond normal board duties.
• Charity Commission or court order – Regulators approve payment after you show a clear benefit for the charity.

However, when using any route, you need to make sure you follow the safeguards in Charity Commission guidance CC11 (April 2025):

• Set duties, hours and fees in a written agreement.
• Confirm the fee is reasonable by checking market rates.
• Keep payments to a minority of the board.
• Exclude any interested trustee from talks and decisions.
• Record the decision fully and publish the payment in your annual accounts.

These steps protect independence, show transparency and confirm that any payment serves the charity’s best interests.

Benefits of Paying Charity Trustees

Paying trustees is not about replacing volunteer spirit. Instead, it can solve specific governance challenges when other options fall short.

1. Broader Board Diversity

Remuneration removes a financial barrier that stops many talented people from becoming trustees.

Offering a modest fee makes the role realistic for younger professionals, parents with caring duties or individuals from lower‑income backgrounds.

A more diverse board brings fresh insight and reflects the communities you serve better.

2. Access to Specialist Skills

Complex charities often need trustees with deep expertise in finance, digital strategy or legal matters. These professionals may have limited capacity to volunteer large blocks of time. A clearly defined fee can attract and retain the expertise needed for robust oversight.

3. Stronger Commitment and Accountability

Trustees who receive payment can allocate dedicated hours to board work, attend every meeting and complete training without fitting it around other paid work.

A formal remuneration agreement sets clear expectations and measurable outputs, supporting a professional governance culture.

4. Better Board Continuity

A small honorarium may persuade experienced trustees to renew their term when personal finances would otherwise force them to step down.

This continuity protects institutional memory and maintains momentum on long‑term projects.

Risks of Paying Charity Trustees

Before you set a fee, pause and map the downside. Trustee payment can raise costs, complicate governance and shake public confidence if not managed carefully. The points which follow highlight the main pressure points.

1. Public Trust and Charity Ethos

Trustees serve as volunteers in most UK charities. Introducing pay can shift public perception and weaken the image of selfless service that underpins giving.

Donors may question how much of their support funds core programmes, when trustee fees appear in the accounts.

2. Independence and Motivation

Financial reward may influence judgement. A trustee who receives a fee could feel pressure to align with executive views or maintain a paid position rather than challenge decisions.

Boards also risk creating two tiers, (paid and unpaid members) with differing expectations and dynamics.

3. Additional Cost and Resource Allocation

Every pound spent on trustee remuneration leaves fewer funds for charitable activities. Smaller organisations feel this impact first, especially when trustee fees require additional insurance, payroll processing and reporting.

4. Limited Evidence of Governance Gains

Studies in sectors which pay board members, such as housing associations, show mixed results. Paid boards sometimes display higher formality yet lower grassroots connection.

Volunteer boards often achieve strong oversight through diverse recruitment, thorough induction and regular evaluation, without introducing cost.

5. Compliance and Administration

Payment brings extra administration. The charity must secure formal authority, draft agreements, calculate tax and publish details in annual accounts. Each step increases workload for finance teams and invites closer regulatory scrutiny.

Trustee Payment in UK Charities: Current Practice and Examples

How common is trustee payment? Most UK charities continue with unpaid boards.

Charity Commission data shows that fewer than two out of every hundred registered charities report paying any trustee. Even among organisations with annual income above £5 million, fewer than one in ten currently remunerate board members.

Large Charities that Choose Payment

Some national charities have introduced limited trustee fees to secure specialist talent or meet heavy time demands.

• RNIB pays its chair around £24,000 a year, reflecting a commitment of up to three days a week.
• Several housing associations pay board fees to attract commercial and regulatory expertise for complex property portfolios.

Charities that Remain Volunteer‑Led

Many well‑known charities, including names in health, education and international development, continue to rely solely on volunteer trustees. They focus on open recruitment, robust induction and ongoing training to strengthen boards without cost.

Sector research

Recent studies from the Charity Commission and Pro Bono Economics highlight ongoing challenges in trustee recruitment and board diversity.

These reports note increasing interest in payment as one possible tool, alongside expense reimbursement, flexible meeting times and targeted induction programmes.

Trustee payment exists in the sector, yet remains the exception. Each board that introduces remuneration does so for a clear, specific reason – supported by evidence that the arrangement benefits the charity and withstands public scrutiny.

How to Introduce Trustee Payment: Practical Board Checklist

The decision to pay trustees deserves the same rigour you apply to major projects or investments. Use the checklist below to steer a well‑documented process.

1. Define the governance gap

Describe the challenge in measurable terms. You might need a qualified treasurer, digital strategist or chair able to devote three working days a week. Record why voluntary recruitment has not produced the result you need.

2. Explore lower‑cost solutions first

Before offering a fee, widen recruitment channels, adjust meeting times, provide remote attendance options or cover childcare and travel. Reimbursing actual expenses often removes the main barrier to volunteering.

3. Confirm legal authority

Check your governing document. If it lacks a remuneration clause, seek Charity Commission consent or consider an amendment approved by members. Apply early, supply evidence of benefit and quote benchmark data to show the fee is reasonable.

4. Manage conflicts from day one

Any trustee who may receive payment steps aside from every related discussion. Keep minutes to summarise decisions, market data used to set the fee, and the expected outcomes.

5. Put it in writing

Draft a service agreement that outlines duties, time commitment, deliverables, review points and termination arrangements. Agree a fixed term, (often twelve months) with an option to renew only after formal board review.

6. Communicate transparently

Update key stakeholders: staff, volunteers, donors and beneficiaries. Explain what the payment covers, the value it provides and how the charity will monitor success. Publish the fee in your annual report under Trustee Remuneration Disclosures.

7. Review and measure impact

Set clear indicators such as board attendance, project completion, recruitment success or audit findings. Schedule a review at least annually. If the payment no longer delivers a tangible governance benefit, plan a return to voluntary service.

Following these steps keeps the focus on mission, ensures regulatory compliance and maintains trust with supporters.

Trustee Payment: Making an Informed Decision

Paying trustees remains rare, yet it can solve specific governance challenges when used carefully and transparently. Boards who define a clear need, follow Charity Commission guidance and communicate openly, place their charity in a strong position to balance benefit with cost.

If you are weighing trustee remuneration and would value tailored support, book a discovery call with Charity Accounting Partners. Our specialist team stands ready to guide you through compliance steps and help you strengthen governance for the long term.