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The Charity Commission has published guidance on how boards should handle payments to trustees for expenses and providing goods and services.
Changes were brought in to allow the payments in the Charities Act 2006.
The commission's updated guidance, Trustee expenses and payments (CC11), confirms that the principle of voluntary trusteeship remains central but also provides answers to common questions.
It deals with when trustees can be paid for supplying goods and services, what to do regarding accountability, managing conflicts of interest and what does and does not count as reasonable expenses.
Rosie Chapman, executive director of policy and effectiveness for the Charity Commission, says the voluntary principle of trusteeship remains at the heart of the commission's role.
"Our updated guidance provides clear and practical advice on all types of trustee payments and reinforces the importance of clear and transparent reporting in this area," she added.
The introduction to the guidance states that there are more than 900,000 charity trustees in England and Wales and the majority act without payment of any kind.
Trust and confidence in charities is sustained because of this principle, the commission adds.
To find out more about our charity legal services, or to discuss a legal matter concerning your charity or not-for-profit organisation, please contact our charity law team on 01753 279059 or email charitylaw@bpcollins.co.uk.
