Best Practice Guidelines for Charities
Voluntary organisations play an important role in Guernsey life. The public expects charities to:
These best practice guidelines set out simple steps to help you run your charity well.
1. Your charity’s aims and governing document
Every charity should have a clear governing document (such as a constitution, trust deed, or articles of association). This sets out:
Your governing document should be reviewed regularly to make sure it stays up to date.
See the Guernsey Registry guidance on governing documents: https://www.guernseyregistry.com/CHttpHandler.ashx?id=139889&p=0
For model constitutions and further advice, you can also look at the UK Charity Commission guidance: https://www.gov.uk/guidance/how-to-write-your-charitys-governing-document
2. Managing Officials
Every charity must have at least two Managing Officials (the people responsible for running the charity). These may also be called trustees, directors, or committee members depending on how the charity is set up.
Managing Officials are responsible for ensuring the charity is run effectively, legally, and in line with its purposes. They must:
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Be fit and proper persons
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Not be bankrupt, disqualified as a company director, or convicted of offences involving dishonesty or deception
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Act only in the best interests of the charity, not themselves
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Be re-appointed or re-elected at least every three years
Unless the charity is set up as a limited company, Managing Officials may be personally liable for the charity’s debts.
See the Registry guidance on Managing Officials: https://www.guernseyregistry.com/CHttpHandler.ashx?id=139889&p=0
3. Managing the charity’s activities
Charities should:
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Understand the needs of their beneficiaries and direct activities towards meeting those needs
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Hold regular meetings to review progress
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Hold an Annual General Meeting (AGM) each year to:
4. Integrity and conduct
Funds must only be used to achieve the charity’s stated aims.
Money raised for a specific appeal must only be used for that purpose.
Managing Officials must act in the best interests of the charity, regardless of how or by whom they were appointed.
Any payments to Managing Officials (other than reimbursed expenses) should be agreed at the AGM.
5. Financial management
The Managing Officials are responsible for ensuring the charity has proper financial records, controls, and reporting.
One Managing Official should act as treasurer, keeping accurate records of the charity’s finances, preparing annual accounts, and presenting them to members at the AGM.
Charities with income or assets over £5,000 are strongly advised to have their accounts independently reviewed by an accountant.
See the Registry guidance on charity financial statements: https://www.guernseyregistry.com/CHttpHandler.ashx?id=139888&p=0
6. Risk management
Managing Officials should consider the risks of any activity the charity undertakes and take steps to reduce them. This includes ensuring those involved are suitably skilled, trained, and trustworthy.
7. Legal compliance
Charities must follow all relevant laws and regulations.
See the Registry guidance on compliance and responsibilities: https://www.guernseyregistry.com/CHttpHandler.ashx?id=139889&p=0
8. Reputation
Charities should carry out fundraising and publicity in ways that protect their own reputation and that of the charitable sector in Guernsey.
9. Self-assessment
It is good practice for charities to carry out a self-check each year to see how well they are following these best practice guidelines and meeting their legal obligations.
This information is offered to help charities adopt best practice. It is not comprehensive, and charities should take professional advice where needed. The Association of Guernsey Charities accepts no responsibility for reliance on these guidelines.