Investing Charity Money:

Guidance for Trustees (CC14)

The refreshed guidance follows a Commission ‘call for information’ and consultation on financial investment and reflects a significant High Court judgment on charity trustees’ investment duties (the ‘Butler-Sloss’ case). Trustees can have confidence in the decisions they make when following the guidance, knowing it is up to date and properly reflects the relevant law.

The guidance:

  • Includes examples of various issues which may be relevant for trustees to consider when making investment decisions, such as the potential for an investment to conflict with the purposes of the charity, or the reputational impact of an investment decision.
  • Lists steps trustees ‘must’ take to be compliant with the law and those trustees ‘should’ do which are strongly recommended as best practice but not legally required.
    explains that acting in the best interests of a charity is about ensuring that above all else any decision furthers its purposes. It also warns trustees to not allow personal motives, opinions, or interests to affect the decisions they make.
  • Incorporates previously separate guidance on social investment and no longer uses terminology that could get in the way of trustees’ understanding, such as ‘ethical investment’, ‘mixed motive investment’ and ‘programme related investment’.

Further information: