July 24, 2026
Beyond Compliance: Exploring the expectations placed on trustees of smaller charities in 2026?
Strong governance is the foundation of every successful charity, regardless of its size.
More than 90% of registered charities in England and Wales have an annual income of less than £500,000. They are the organisations that often provide the greatest connection to their communities, delivering services through committed staff, volunteers and trustees who freely give their time and expertise.
Yet while these charities may be smaller in scale, the expectations placed upon their trustees have never been greater.
In 2026, trustees are expected to do far more than simply attend board meetings and ensure legal compliance. Effective governance now rests on three interconnected responsibilities: fiduciary, strategic and generative leadership.
Fiduciary: Protecting the Charity
The fiduciary role remains the foundation of trusteeship. Trustees are legally responsible for ensuring their charity complies with charity law, acts in accordance with its governing document and delivers public benefit.
This includes safeguarding the charity’s finances, approving realistic budgets, monitoring cash flow, managing risk, ensuring proper financial controls and maintaining adequate reserves. Trustees must also oversee compliance with employment law, data protection, fundraising regulation, health and safety, safeguarding and increasingly, cyber security.
For charities with limited resources, fiduciary responsibility often requires trustees to ask difficult questions about financial sustainability, unrestricted income and operational resilience. Good governance is not simply about avoiding failure; it is about ensuring the organisation remains capable of fulfilling its charitable purpose for years to come.
Strategic: Looking Beyond Today
Trustees are also expected to think beyond day-to-day operations. Their role is to help define the organisation’s long-term direction while supporting and constructively challenging the executive leadership.
This means agreeing a clear strategic plan, monitoring performance against objectives, reviewing organisational impact and ensuring resources are aligned with priorities. Boards should regularly assess whether their programmes continue to meet changing community needs and whether the charity possesses the skills, partnerships and financial model necessary to thrive.
For smaller charities, strategy often means making difficult choices. It may involve focusing on fewer activities, investing in digital capability, collaborating with other organisations or exploring mergers where they strengthen long-term impact.
The strongest boards understand that strategy is not an annual away day, it is an ongoing conversation.
In 2026, trustees are arguably working harder than ever before, providing the strategic leadership and the vision to help organisations thrive in a rapidly changing and increasingly challenging world.
Generative: Asking Better Questions
Perhaps the greatest shift in governance has been the growing recognition of the trustee’s generative role.
Rather than concentrating solely on oversight or strategy, generative governance encourages trustees to ask deeper questions about the charity’s future.
What emerging challenges could affect the people you support?
Are we solving the right problems?
How might technology—including artificial intelligence—change how people access our services?
Could we measure our impact differently?
Are there opportunities we have not yet considered?
Generative boards encourage curiosity, innovation and thoughtful debate. They help charities adapt before circumstances force them to change.
For smaller charities facing increasing financial pressures and rising demand, this mindset has become invaluable.
Building the Right Board
An effective board requires more than goodwill. Trustees should collectively bring a balanced range of skills, experiences and perspectives across finance, governance, fundraising, legal matters, communications, digital technology, lived experience and the charity’s area of expertise.
Equally important is board culture. Trustees should feel confident asking challenging questions while maintaining trust, respect and collective responsibility. Regular board evaluations, skills audits, succession planning and ongoing trustee development are becoming hallmarks of well-governed organisations regardless of size.
Trusteeship in 2026
The role of trustee has evolved significantly. Today’s trustees are expected to be diligent custodians of resources, thoughtful strategic leaders and imaginative thinkers who help charities prepare for an increasingly complex future.
For charities with incomes below £500,000, good governance is not determined by the size of the organisation but by the quality of its leadership. Boards that successfully balance fiduciary discipline with strategic focus and generative thinking will be best placed to build resilient organisations capable of delivering lasting public benefit for the communities they serve.
Ultimately, trusteeship is about stewardship, protecting today’s charity while shaping tomorrow’s.
Contact Us
For an informal and confidential discussion, please contact our Founder & CEO, Philip Nelson, via email at philip.nelson@thehiringdept.com.
Philip has over twenty years of experience in executive search and currently serves as a Trustee of Coram Beanstalk and as the Policy Development Lead for Heritage & Tourism at The Green Party.
