What skills do you need on your trustee board?

One of the most common requests we receive from clients is to help them conduct a Trustee skills audit to inform board development. The simple audit tool we use starts by asking Trustees (and senior staff) which skills they believe are most important to have amongst the Trustees of their charity. It goes on to ask what skills each current Trustee brings to the board and then we conduct a simple gap analysis.

A recent review of the charity sector conducted by Kreston UK reported that the most common skill gaps amongst Trustee boards are HR and IT skills, followed by Legal skills and then “other” (amongst which fundraising was the most commonly cited need). Finance, Estates and Procurement are also cited as common skills gaps.

These findings are broadly mirrored by our experience from the skills audits we have conducted, in which Legal, HR, finance, charity governance and fundraising/income generation are typically the most common needs identified.

However, when our audits identify skills gaps in areas such as Legal, HR and IT, our response is usually to challenge whether these skills are really needed on the board. In our view, what a board needs is enough awareness to know when to seek professional advice in these areas (whether paid for or pro bono), rather than to stack the board with technical experts.

Why do we take this view?

Primarily this is because most of the time specialist support for legal, HR, IT etc, is not something that a charity needs (depending of course on the work it is involved in); these are not matters that generally arise in the day to day work of any charity, particularly small charities. In larger charities, there will undoubtedly be day to day IT and HR matters to deal with but those will be operational and should be managed by staff, not Trustees.

Secondly, finding the right experts who are willing to devote the time to be a Trustee is often very difficult. For example, in the case of legal expertise, just appointing a “lawyer” will almost never provide all the legal expertise the charity will need. Sometimes it may need advice on charity law, sometimes contracts, sometimes on matters of tort, sometimes HR law (such as TUPE) and so on. Very few, if any, lawyers will be specialists in all of these. In fact we have come across far too many cases where a Trustee who is a solicitor (for example specialising in family law, or wills and probate) has provided incorrect advice on matters of charity law that we, often with support from specialist solicitors, have then had to unpick. In these areas, getting the right expert is far more important than getting someone who may have some general knowledge of the field.

Thirdly, with the greatest of respect to the excellent lawyers, IT experts and HR advisors we have come across over the years, technical experts (particularly lawyers) have a tendency to be risk averse, particularly if their fellow Trustees are looking to them for advice in an area that is not their specialism. This can lead to poor decision making, wasted resources and missed opportunities for a charity.

So what skills are needed on a Trustee board?

First and foremost Trustees should have a zeal for the cause of the charity and have time available to commit to their Trustee duties.

A close second, in our view, is that Trustees need to be team players; people who work well with others, who value and respect different opinions/points of view and who have he best interests of the charity at heart. People who like to control, dominate and get their own way or whose behaviour is not conducive to good governance have no place on Trustee boards. Joint second is the need for diversity amongst Trustees. Diversity is essential to:

• ensure beneficiaries’ views are properly represented in governance and strategy;

• avoid group think and stimulate creativity and innovation;

• support fairness and openness in charities dealings with beneficiaries and stakeholders; and

• increase public confidence and accountability.

Of course, beyond these critical core attributes, some specific skills are needed. These will vary from charity to charity but in our view, the following is a pretty good general guide:

• All charities should have at least one person on their board with significant experience of charity finances and all trustees need at least a basic knowledge (which can be achieved through training).

• All charities should have at least one person on their board with significant experience of charity governance and all trustees need at least a basic knowledge (which can be achieved through training).

• All charities should have good representation other board from people with lived experience of the issues the charity is trying to tackle; people who have good insight into what the charity’s beneficiaries want/need.

• Most charities will benefit from having at least one Trustee with significant fundraising or income generation experience and/or with access to networks of people who could be significant supporters of the charity.

• Many charities will need at least one person on their board with significant experience of safeguarding and all trustees need at least a basic knowledge (which can be achieved through training).

• Beyond these core skills, charities should look for people who have experience of the services or projects they are delivering and/or understanding of the charity’s key stakeholders (e.g. schools, local authorities, the NHS, etc.)

• In a few cases, specialist expertise can also be helpful (and even essential). For example, a small charity delivering a major capital project will often benefit from a Trustee who has expertise in project management and/or procurement.

We equally recognise that, often, charities struggle to find new Trustees and it will never be possible for any charity to have a perfect mix of skills and experience on its board. In our view, people with a passion for the cause and who are team players are invaluable, Experts who are either risk averse or, worse, disruptive because they do not work well in a team, can hold a charity back and in some cases cause a governance crisis that threatens a charity’s existence.

To find out more about the governance support and training we offer, including Trustee skills and diversity audits, please contact us at julian@almondtreeconsulting.co.uk to arrange free initial discussion.