Conflict of interest

gordonfgunngordonfgunn MAAT, AAT Licensed Accountant Posts: 2
Hi everyone

I'm a trustee for a museum, which is registered as a Ltd Co with full charitable status. I run my own accountancy practice, and the museum are looking to outsource the bookkeeping.

Is there a conflict of interest of me being a trustee, and charging the museum for my services? I don't have access to the bank account etc

Comments

  • CSan89CSan89 WiltshireMAAT Posts: 198
    You could get quotes from different bookkeepers to make sure that the price you are charging is reasonable.

    Also when it comes to making the decision, remove yourself from that discussion so the other trustees don't feel pressured.
    AAT Level 2&3 - 2016
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  • gordonfgunngordonfgunn MAAT, AAT Licensed Accountant Posts: 2
    Thanks. That's what we're doing, we're getting quotes from all local bookkeepers, and from a bit of background reading removing myself from the actual decision is needed.

    I'm currently a sole trader, would me being a Ltd Co make any difference to the conflict of interest? In that it wouldn't be me financially benefiting directly as a person, but a company controlled by me instead? Or would this make no difference?
  • davealucasdavealucas LondonMAAT Posts: 58
    @gordonfgunn Normally Trustees are not permitted to benefit from the Charity for the very reason that you state (conflict of interest). That is not to say it cannot be done but the Board of Trustees have to be very careful. It could be possible that the Charity's constitution doesn't permit such an appointment.

    You should read the Charity Commission's guidance on conflicts of interest: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/636091/CC29.pdf


    I also suggest the board contact the Charity Commission and ask for advice.
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