Not a numbers person? 10 questions every trustee should ask

"You don't need to be an accountant to be a good trustee. But you DO need to know what questions to ask"

That was my message at this year's Festival of Trusteeship, where I joined a brilliant panel as part of the Money Matter series: "10 Questions Every Trustee Should Ask", a session supported by Evelyn Partners.

As a longstanding charity trustee and school governor, and now on the other side running a small charity, I know all too well how intimidating financial discussions can be. I've felt intimidated myself - and I'm a trained accountant! For trustees without a financial background, I understand it can be difficult to see how you can contribute.

At the start of the session, we asked attendees how comfortable they felt with charity finances. Just 32% felt pretty sure they knew what they were doing. Another 61% understood some of it but tended to leave the detail to others, while 7% felt the finance report might as well be in another language.

And that was exactly the inspiration for this session.

You don't need a wealth of financial knowledge and experience to make a valuable contribution to your charity's finances. You need to know what questions to ask.

What's great about these ten questions is that they apply to charities of all shapes and sizes.

Whether you're overseeing a multimillion-pound budget with a Finance Director and dedicated finance team, or a small charity with no paid employees and one very hardworking volunteer keeping the books in order.

So here they are, grouped into three themes. Let me know what you think!

Theme 1: Understand the finances

1. Who's actually responsible for our finances?

The Treasurer? Finance Director? The person preparing the accounts?

Actually, all trustees share legal responsibility for overseeing their charity's finances. Appointing a Treasurer or employing a finance professional doesn't remove that collective responsibility.

If you're the Treasurer, an important part of your role is helping fellow trustees understand the financial position, rather than carrying all the responsibility yourself.

And if finance isn't your specialism? You still need to ask questions until you understand enough to make informed decisions.

This first question is to ensure the Board understand their collective responsibility!

2. Are we looking at the right numbers, or just lots of numbers?

We've all sat through meetings with pages of financial reports. But are they telling us what we really need to know?

Good reporting isn't about producing more information. It's about providing the *right* information.

Yes, trustees need to know whether the charity is running at a surplus or deficit - broadly speaking, whether its income exceeds its expenditure. But the Board also needs to understand what sits behind those figures:

• How much cash do we have, and how long will it last?

• Are we overly reliant on one source of funding?

• What does the financial outlook look like over the next six or twelve months?

The right measures differ between charities. What matters is agreeing which ones count, setting sensible targets or warning thresholds, and making the information understandable.

In our audience poll, 47% felt the financial information their board received was great - more positive than I expected! However, more than half saw room for improvement.

Are your financial reports designed to support decisions, or merely to demonstrate that someone has been very busy with Excel?

3. What are restricted funds… and are we accidentally spending them?

For trustees coming from the corporate world, this can be unfamiliar. In the charity sector, not all money is equal.

Restricted funds are funds that must be used for a specified purpose, according to restrictions imposed by a donor or funder.

If a charity receives £10,000 specifically to buy equipment for a children's programme, it cannot simply divert that money to the electricity bill, however worthwhile keeping the lights on may be. Using restricted funds incorrectly can mean having to repay the money.

A healthy bank balance therefore does not necessarily mean a financially healthy charity. If most of the cash is restricted, very little may be available for general running costs.

Trustees should check funding agreements, spending deadlines and balances, and ensure these are properly tracked. A separate bank account is not always necessary; reliable records are.

Encouragingly, 92% of respondents felt their organisation knew its stuff on restricted funds, with 1% saying no and 7% unsure.

That's reassuring, although confidence is not quite the same thing as assurance that the records and controls are right.

4. Would the tax man be happy with us?

Despite being a chartered accountant, tax remains one of the areas I find most daunting. It is complicated and the rules can change.

Charities benefit from valuable tax reliefs, but that doesn't mean they can ignore tax rules.

• Are we claiming Gift Aid correctly?

• Should we be registered for VAT?

• Are payroll taxes being handled properly?

When it comes to donations, for example, there are rules about what qualifies for gift aid when the donor receives something in return. And VAT can become particularly important as charities grow and develop income-generating activities.

Trustees don't need to become tax specialists. But they do need to know which obligations apply and whether the charity has access to appropriate expertise.

Ask your Board how it can demonstrate that the charity is keeping up with its tax requirements. Mistakes here can be expensive.

Theme 2: Protect your assets

5. Are we looking after our assets sensibly?

For some charities, assets mean substantial investments, property or an endowment - assets held to support the charity over the long term.

For others, a minibus, three laptops and a rather temperamental photocopier!

Whatever the charity's size, there are two questions to reflect on here.

Are we keeping our assets safe? Are they recorded, insured and properly maintained?

Are we making the best use of them? That might mean appropriate investments, sensible cash management or finding productive uses for property.

Inno van den Berg of Evelyn Partners made this point powerfully during our panel discussion:

"The money's there to be used for a charitable purpose. Use it for that charitable purpose."

It's a valuable reminder that good financial stewardship isn't simply about preserving resources. Trustees also need to put them to work for charitable impact, while balancing present needs against long-term sustainability and any restrictions on how assets may be used.

Our poll found that 36% had someone with investment expertise on their board, while 29% said they lacked that expertise and could do with it. Another 36% said they didn't have enough cash to invest.

Not every charity needs an investment expert on its board, but trustees making significant investment decisions should understand the risks and seek suitable advice.

6. How many people can access the bank account… and should I be worried?

Having lots of people with bank access isn't necessarily a problem; having very few isn't necessarily reassuring.

The important question is: who can do what, and which checks are in place?

Can the same person set up and approve payments? Is there dual authorisation? Who reviews transactions?

Accountants call this *segregation of duties* - separating responsibilities so that one person isn't doing everything unchecked.

In a smaller charity with a handful of volunteers, perfect separation may not be possible. But proportionate controls, clear authorisation rules and regular independent review are still essential.

This might seem like a question about administrative details, but understanding financial processes and controls is a critical part of fulfilling your responsibilities as a trustee.

7. How happy is our Treasurer really?

When it comes to charity finances, one of your most valuable assets might be the person looking after them.

At Charterpath, we regularly meet small charities where enormous responsibility rests on one volunteer Treasurer - preparing accounts, paying bills, dealing with the bank and reporting to the board, often alongside another job.

Everyone says, "Aren't we lucky to have them!" Which we are. But when did anyone last ask how they're actually getting on?

Do they have the right skills, support and capacity? Is the workload becoming overwhelming?

Over-reliance on one person creates risks, however brilliant and committed they may be.

Sometimes the most important financial question isn't about the numbers at all. It is: "Are you OK? And what can we do to help?"

Theme 3: Plan for the unexpected

8. Are we living in the real world?

It's tempting to prepare a budget by taking last year's figures and making a few adjustments.

But charities don't operate in a bubble. Employment costs, energy prices, inflation, taxes and government policy can all affect employment costs, energy prices, inflation, taxes and government policy can all affect the cost of delivering services. Meanwhile, economic pressures can increase demand for those services while reducing people's ability to donate.

Only 18% of our poll respondents felt clear about how the latest Budget would affect charities; 40% said they weren't clear, and 42% were unsure.

That's a reminder to consider the external factors relevant to our own organisations.

Not every newspaper headline merits a fresh forecast, but significant risks and opportunities do.

9. Could we survive a funding shock?

This is probably one of the most critical questions to ask about the finances.

Imagine losing the charity's largest grant tomorrow. Or a major donor withdrawing. Or an unexpected roof repair.

What happens next? This is where reserves and scenario planning come in.

In broad terms, reserves are funds freely available for a charity's general purposes. They aren't simply the total cash in the bank. Some money may be restricted, and some resources may be tied up in assets that cannot quickly be converted into cash.

Scenario planning simply means asking "what if?"

What if income fell by 20%? What if costs increased? How long could we continue operating, and what would we do first?

The aim isn't to predict the future perfectly, but to have a plan before a crisis arrives.

10. If our Treasurer disappeared tomorrow, would anyone know how anything works?

Hopefully they've just won the lottery and retired somewhere sunny!

But would anyone else know how to access the bank, find records, pay suppliers or complete annual returns?

This is succession planning: ensuring knowledge and responsibilities aren't concentrated in one person.

Could another volunteer shadow or support the Treasurer? Are essential processes documented and access details stored securely?

We occasionally meet those mythical volunteers who know charity finance, charity law and governance, and have ten hours a week to spare. But they're few and far between!

Making finance roles manageable, supported and shareable is how we make volunteering sustainable.

What did our expert panel think?

Following the presentation, we had a fascinating conversation chaired by Kemi Olafare, with Inno van den Berg from Evelyn Partners, Krystle McGilvery, a money and behaviour specialist, and Sarah Ann Moore from the Charity Finance Group.

Inno highlighted the importance of making sound investment decisions and understanding how changes announced in the Budget can affect charities. He also shared useful insights into the advantages and limitations of money market investments.

Krystle spoke brilliantly about the natural fear of numbers and how financial discussions can make people feel exposed. She encouraged us to recognise different learning styles, use plain English and present information in ways that work for different people. Equally, she encouraged those feeling intimidated by finance to step outside their comfort zones and get involved.

She also had a great question to add to the list:"What would make your Treasurer worry?" It cuts through jargon to what really matters.

Sarah reminded us that there isn't a one-size-fits-all template for financial reporting. Different charities and boards need to monitor different measures.

She highlighted two of her preferred indicators: cash burn — the rate at which an organisation is using up its cash, after accounting for cash coming in - and cash runway - how long its available cash might last at its current or forecast rate of net cash usage.

And of course, we had to discuss AI!

The panel explored how AI could be game-changing for charity finance - both in helping teams produce clearer reports and in helping trustees understand the information they're presented with. But there are important safeguards.

Charities need to consider data confidentiality, security and appropriate boundaries.

Above all, the need to keep a human in the loop. AI might see £100,000 sitting in the bank and conclude that a charity is in excellent financial health, without recognising that the cash is restricted to a particular project.

Kemi also posed an excellent challenge to the panel: it's all very well asking these questions, but how do you know you're getting the right answers?

The short answer is that you can't always know immediately. But if you don't understand the explanation, there's a reasonable chance others don't either. Don't be afraid to ask for a simpler explanation, or to seek independent advice where necessary.

The audience's verdict: Which questions matter most?

We finished by asking attendees to choose the three questions they would most like to see on their next board agenda.

"Are we looking at the right numbers, or just lots of numbers?" was voted for by 46% of attendees.

That sounds sensible to me. Until you know what you're aiming for, it's difficult to judge how your charity is performing. Understanding the right measures is a natural starting point for a meaningful discussion about finance.

This was closely followed by: "What if our Treasurer vanished" with votes from 37% of attendees. A theme that is close to our hearts at Charterpath. Look after your greatest assets - your people!

Let's hope the session sparks some valuable conversations about charity finance at board meetings across the UK - and helps those who have little financial experience feel confident enough to contribute.

Good financial governance isn't about having all the answers. It's about having the confidence to ask the right questions - and the willingness to act on what you learn.

Watch the session

If you missed the Festival of Trusteeship, or would like to revisit the panel discussion, the recording will be available on the Eastside People - Festival of Trusteeship page in 2027.

A huge thank you to Kemi Olafare for chairing, our panellists for sharing their expertise, Eastside People for organising the Festival of Trusteeship, and Evelyn Partners for supporting this session.

If your charity needs help finding a Treasurer, trustee or finance volunteer, visit www.charterpath.org.uk. Our mission is to help small charities access the financial expertise they need to thrive.

 About Charterpath

Charterpath CIO is a UK registered charity (1207509) charting a path between non-profits and volunteers with financial skills. Charterpath was co-founded by Alice Clementi and Alex Marsh, both chartered accountants with extensive volunteering and fundraising experience alongside their professional careers. They were inspired to start Charterpath in 2020, after seeing first-hand the unprecedented financial challenges facing the non-profit sector from the pandemic.

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