Liabilities

As alluded to above, charity trustees need to be aware of their general obligations under the law. Charities have employees and need to be aware of the intricacies of employment law, as the mishandling of relationships with employees can lead to accusations of unfair dismissal or discrimination, which, if they proceed to an employment tribunal can damage a charity's reputation, as well as its bank balance!

Charities with employees need to be aware of health and safety legislation, which requires the employees' places of work and their working environment to be safe.

Matters of the law relating to data protection and intellectual property rights can also be relevant to a charity's business, as well as matters of special application for charities, such as on the disposal of land, or arranging fund raising events or street or door-to-door collections. A breach of such legislation can leave trustees with personal criminal liability or, if their failure to observe the law has drained the charity of funds, personally liable for replacing those lost funds.