


Royal Astronomical Society governance
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BACKGROUND
What is a charity?
What are the duties of trustees? (ie Council members)
What is a charity?
To be a charity in England and Wales, an organisation must satisfy the definition of a charity in the Charities Act, which is that:
it is established for charitable purposes only - they must fall within the descriptions of purposes in the Charities Act and be for the public benefit
is subject to the control of the High Court’s charity law jurisdiction
What are charitable purposes in the Charities Act?
The list of 13 charitable purposes is set out in the Charities Act 2011, as follows:
(a) the prevention or relief of poverty
(b)the advancement of education
(c) the advancement of religion
(d) the advancement of health or the saving of lives
(e) the advancement of citizenship or community development
(f) the advancement of the arts, culture, heritage or science
(g) the advancement of amateur sport
(h) the advancement of human rights, conflict resolution or reconciliation or the promotion of religious or racial harmony or equality and diversity
(i) the advancement of environmental protection or improvement
(j) the relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage
(k) the advancement of animal welfare
(l) the promotion of the efficiency of the armed forces of the Crown, or of the efficiency of the police, fire and rescue services or ambulance services
(m) any other purposes currently recognised as charitable or which can be recognised as charitable by analogy to, or within the spirit of, purposes falling within (a) to (l) or any other purpose recognised as charitable under the law of England and Wales
The relevant purposes for the Society are very obviously: "the advancement of education" and "the advancement of the arts, culture, heritage or science", highlighted in purple above.
What is the Society's charitable purpose?
The Society's purpose is (in the legal language of the Charter): The promotion and encouragement of Astronomy more particularly by the publication of the results of astronomical research, the maintenance of an astronomical library, and the holding of meetings.
More informally, the Society aims to "encourage and promote the study of astronomy, solar-system science, geophysics and closely related branches of science"
Summary of the duties of charity trustees
A charity trustee is a functional position ie it is about what a person does, not how they are described. This will include any person who satisfies the statutory definition of “charity trustee” found in s.177 of the Charities Act 2011. This is "any person who has “the general control and management of the administration of a charity.”
In the case of the Society, it is the individual Members of Council who are the charity trustees and, therefore, subject to the legal and regulatory requirements imposed by charity law. They must satisfy the six key duties of charity trustees.
1) Complying with the law and the Society’s governing documents
Members of Council are under a duty to ensure that the Society complies with its Charter and Bye-laws.
2) Ensuring that the Society is carrying out its purposes for the public benefit
Members of Council must ensure that they only spend the Society’s funds on its charitable purposes. Spending the Society’s funds on the wrong purposes, or in a way that provides a private benefit to individuals or non-charitable organisations which is more than merely incidental, is a breach of duty and could, in extreme situations, result in the Members of Council being personally liable to reimburse the Society for any loss suffered.
3) Always acting in the Society’s best interests
Members of Council owe a fiduciary obligation of undivided loyalty to the charity’s object ( from the Charter: “the encouragement and promotion of Astronomy”)
As charity trustees, they are in a position of trust and confidence and must act on behalf of the Society and its beneficiaries.
4) Managing the Society’s resources responsibly
Members of Council must act responsibly, reasonably and honestly at all times, exercising sound judgement in respect of the Society and its assets. They must avoid exposing the Society’s assets or reputation to undue risk.
5) Acting with reasonable care and skill
Members of Council must exercise such care and skill as is reasonable in the circumstances, making use of their own skills and experience and taking appropriate professional advice where necessary. This includes giving sufficient time to their role as charity trustees, preparing for and fully participating in Council meetings.
The law generally protects charity trustees if they have acted honestly. Trustees who have acted dishonestly, negligently or recklessly can be held personally accountable to the charity for any financial loss they cause.
6) Making sure the Society is accountable
Members of Council must ensure that the Society complies with statutory accounting and reporting requirements, and is accountable to its stakeholders.
Trustee decision-making
When taking any decisions in relation to the Society, Members of Council must act in the best interests of the Society,
making balanced and appropriately informed decisions, considering the long-term as well as the short-term implications of those decisions and the impact on current and future beneficiaries. The Charity Commission’s guidance on trustee decision-making (DecisionMaking for Charity Trustees (CC27)) provides a framework of seven decision-making principles which the Commission expects charity trustees to follow. In summary, trustees must:(a) act within their powers;
(b) act in good faith;
(c) be sufficiently informed;
(d) take account of all relevant factors;
(e) identify and disregard irrelevant factors;
(f) manage conflicts of interest; and
(g) ensure their decision is within the range of decisions that a reasonable body of trustees could make.
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