Making good decisions as charity trustees: a guide to CC27

As charity trustees, you play an important role in guiding your charity and making sure its work delivers public benefit. Making the right decisions can be challenging. This is where the Charity Commission’s guidance, CC27: It’s Your Decision, comes in.

We understand the pressures trustees face when making important decisions. CC27 offers practical steps to help you with these challenges.

What is CC27?

CC27 is the Charity Commission’s guidance designed to help trustees make sound, well-informed decisions. It outlines seven core principles to make sure your choices are lawful, accountable and in the best interests of your charity. The framework is especially useful in complex or contentious situations

The seven principles of decision-making

1. Act within your powers
   Trustees must understand and stay within the boundaries of their charity’s governing document. For example, if your charity’s constitution limits investments to ethical funds, investing elsewhere—even for better returns—would breach your responsibilities.
2. Act in good faith and in the charity’s best interests
   Decision-making isn’t about personal gain or external pressures. It’s about what genuinely benefits the charity and its objectives.
3. Be sufficiently informed
   Gather all the facts before making a decision. For financial matters, this might involve seeking professional advice or reviewing detailed budgets.
4. Take account of all relevant factors
   Consider the short-term and long-term implications of a decision. For example, while cutting a programme might save costs now, will it harm the charity’s reputation or beneficiaries in the future?
5. Ignore irrelevant factors
   It can be tempting to base decisions on emotions or external influences, but trustees must remain impartial and focused on what really matters.
6. Manage conflicts of interest
   Trustees must avoid situations where personal interests conflict with their duty. A clear conflict-of-interest policy is needed to maintain transparency and trust.
7. Make decisions that are within the range of decisions a reasonable trustee body would make
   This principle reminds trustees that their decisions need to be proportionate and reasonable. A decision won’t always turn out to be the ‘right’ one, but it should reflect careful consideration of relevant information, and meeting minutes should be able to demonstrate that.

Practical tips for trustees

1. Read CC27
   When preparing for board meetings, refer to the seven principles to structure discussions and assess decisions.
2. Document your decisions thoroughly
   Keep good records. This is important, especially if your charity’s decisions are challenged. Minutes should reflect the factors considered and the rationale behind decisions.
3. Seek professional advice when needed
   Think of advisers as an extension of your team. They can help with more complex areas and make sure the charity remains compliant.
4. Encourage training for trustees
   Regular training will keep your board up to date with regulatory changes and best practices.

Why CC27 matters

Following CC27 isn’t just about compliance—it protects your charity’s reputation and resources. It builds trust with beneficiaries, donors and regulators.

Need help?

We recognise the challenges trustees face. CC27 is designed to support you and offer clarity. If you’d like to discuss how we can support your charity, with this or any other matter, feel free to get in touch with your usual contact.

You can find contact details on the Our People section of the Larking Gowen website. Alternatively, call 0330 024 0888 or email enquiry@larking-gowen.co.uk.

Lee Robinson