Can Trustees of a Charity Be Paid? UK Rules Explained

The default position in charity law is clear: trustees must not be paid for being trustees. Trusteeship is a voluntary role. The Charities Act 2011 reinforces this — trustees cannot receive any benefit from the charity unless specific conditions are met.

But "trustees cannot be paid" is the headline, not the full picture. There are legitimate exceptions, and trustees can always claim reasonable expenses. Here is how the rules work.

The default rule: no payment

Charity trustees serve in a voluntary capacity. This means:

• No salary for serving as a trustee
• No fees for attending meetings
• No honoraria or token payments
• No profit from transactions with the charity

This rule exists because trustees are responsible for managing the charity in the interest of its beneficiaries, not for personal gain. Any payment creates a conflict of interest.

When trustees CAN be paid

There are three routes by which a trustee can receive payment.

1. The governing document allows it

If your charity's governing document (constitution, trust deed, or articles) explicitly authorises trustee payment, trustees can be paid within those terms. This is most common in older trusts where the deed was drafted to allow a professional trustee (solicitor, accountant) to charge fees.

Check the exact wording. A clause that allows payment "for services rendered to the charity" is different from one that allows payment "for acting as a trustee." The scope matters.

2. The statutory power in section 185 — goods or services supplied to the charity

This is the route most small charities actually use, and it is widely misunderstood. Section 185 of the Charities Act 2011 is a power belonging to the charity and exercised by its trustees. It does not require Charity Commission consent. If the four statutory conditions are met, the trustee "is entitled to receive the remuneration out of the funds of the charity" — no application, no authorisation.

Since 31 October 2022, when section 30 of the Charities Act 2022 commenced, section 185 covers goods as well as services. The section heading as in force reads "Remuneration of charity trustees or trustees etc. providing goods or services to charity", and Conditions A and B refer to "goods or services, or goods and services". Before that date it reached services only — so a trustee who was a plumber could be paid to fit a boiler, but a trustee who ran a builders' merchant could not be paid for supplying the pipe.

The four conditions, as the section puts them:

• Condition A — the amount or maximum amount is set out in a written agreement between the charity (or its trustees) and the person supplying the goods or services, and "does not exceed what is reasonable in the circumstances for the provision by P of the goods or services, or goods and services, in question."
• Condition B — before entering into that agreement, the trustees "decided that they were satisfied that it would be in the best interests of the charity for the goods or services, or goods and services, to be provided by P to or on behalf of the charity for the amount or maximum amount of remuneration set out in the agreement."
• Condition C — a minority test. Trustees who are being paid under such an agreement, are otherwise entitled to remuneration from the charity, or are connected with someone who is, must together "constitute a minority of the persons for the time being holding office as charity trustees of the charity."
• Condition D — "The trusts of the charity do not contain any express provision that prohibits P from receiving the remuneration."

Section 185 also requires trustees to have regard to Commission guidance before entering into the agreement, and applies the Trustee Act 2000 duty of care to the Condition B decision. It does not apply to remuneration for services provided in the capacity of trustee, or under a contract of employment — those are outside the section entirely.

Note what is not in the list: keeping the interested trustee out of the discussion and vote is not a section 185 condition. It is required by the general duty to manage conflicts of interest, it is what any competent board does, and it should be minuted — but it is not where the statutory authority comes from.

Example: A trustee who is a qualified accountant could be paid to prepare the charity's accounts under section 185, provided there is a written agreement at a reasonable amount, the other trustees decided the arrangement was in the charity's best interests before signing it, paid trustees remain a minority of the board, and the governing document does not prohibit it.

3. Charity Commission authorisation

Where a payment falls outside section 185 and is not authorised by the governing document, the route is an authorisation or order from the Charity Commission. That covers, for example, payment for acting as a trustee, or a payment the charity's trusts expressly prohibit.

The Commission will consider whether the payment is reasonable, whether the service could be obtained more cheaply elsewhere, and whether adequate conflict-of-interest safeguards are in place. This is a genuinely different mechanism from section 185, and conflating the two is the most common error in sector summaries: section 185 exists precisely so that ordinary supplies of goods or services by a trustee do not need an application.

Expenses — always claimable

Trustees can always claim reasonable out-of-pocket expenses incurred in carrying out their trustee duties. This is not payment — it is reimbursement for costs that the trustee would not have incurred otherwise.

Common claimable expenses:

• Travel to and from trustee meetings
• Accommodation for meetings that require an overnight stay
• Childcare or carer costs to enable attendance at meetings
• Postage, printing, and phone calls related to charity business
• Training course fees

Keep receipts and records. The charity should have a written expenses policy that sets out what can be claimed, any limits, and the approval process. Reimburse promptly — trustees should not be out of pocket for volunteering their time.

Importantly: Many small charity trustees do not claim expenses even when they are entitled to. This is generous, but it can create a barrier — potential trustees who cannot afford to absorb travel costs may not put themselves forward. Make it clear in your recruitment materials that expenses are paid.

The conflict of interest angle

Any payment to a trustee creates a conflict of interest that must be managed:

1. Declare the interest at the relevant board meeting
2. Withdraw from the discussion and vote on the decision to make the payment
3. Record the declaration and withdrawal in the minutes
4. Review the arrangement annually to ensure it still represents value for money

Failure to manage these conflicts can lead to a Charity Commission inquiry, and in serious cases, the Commission can require repayment of any unauthorised benefit.

What about trustee chairs or treasurers?

Being chair or treasurer does not change the rules. These roles carry additional responsibilities but are still voluntary trustee positions. Payment for chairing or acting as treasurer is not permitted unless the governing document or the Charity Commission authorises it.

For guidance on board roles and effectiveness, see our Charity Governance Code 2025 guide.

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This guide applies to charities registered in England and Wales under the Charities Act 2011. This is general guidance, not legal advice.

Sources

• Payments to charity trustees: what the rules are — GOV.UK
• Charity trustee: what's involved — GOV.UK
• Charities Act 2011, section 185 — remuneration of charity trustees providing goods or services
• Charities Act 2022, section 30 — extending section 185 to goods