A trustee is an individual or organization appointed to manage and oversee the assets and affairs of a trust on behalf of the beneficiaries. In the context of nonprofits, trustees typically serve on the board of directors and are responsible for ensuring the organization operates in accordance with its mission, adheres to legal standards, and fulfils its fiduciary obligations. Trustees are integral in guiding the strategic direction of the organization, safeguarding its resources, and providing accountability. Membership on a board as a trustee often entails duties such as fundraising, policy formulation, leadership recruitment, and community representation. Trustees must act in good faith, prioritize the organization’s welfare above personal interests, and maintain transparency with stakeholders. Their positions are typically voluntary, but they rely on a foundation of diverse expertise ranging from financial management to community engagement to effectively perform their roles.
In reality, trustees work collectively as a board, and decisions are typically made through consensus or voting. Effective governance involves collaboration with other board members and management to ensure the organization fulfills its mission and adheres to ethical standards.
The primary role of a trustee in a nonprofit organization is to provide governance, oversight, and strategic direction while ensuring that the organization acts in the best interest of its beneficiaries and community. Trustees are responsible for understanding the organization’s mission and ensuring that resources are used efficiently and legally.
Generally, trustees serve in a voluntary capacity and do not receive payment for their service. However, some organizations may offer modest stipends or reimbursements for expenses incurred during their service, particularly for those who may travel long distances to attend meetings.
While there is no specific qualification required to become a trustee, it is beneficial for trustees to have a background or experience in areas such as finance, law, fundraising, or nonprofit management. A firm commitment to the organization’s mission and the ability to work collaboratively are also essential qualities.