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Dispute Resolution Strategies for UK Charities Explained | LegalDocuments.co.uk

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Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Charities depend on goodwill. When trustees, staff, volunteers, beneficiaries and donors pull in the same direction, remarkable things happen. But put any group of committed people together, especially ones who care deeply about a cause, and disagreements are inevitable. Left unchecked, those disagreements can drain funds, damage reputations, and pull focus away from the very beneficiaries the charity exists to serve. I've seen small internal grievances escalate into regulatory complaints simply because no one knew how to step in early. This page walks through how charities in England and Wales can prevent, manage and resolve disputes constructively, covering trustee disagreements, staff and volunteer grievances, complaints from beneficiaries, and friction with external partners. The aim is simple: keep the mission on track, protect the people involved, and handle conflict in a way that's fair, proportionate and in line with what the Charity Commission expects from well-run charities.

What this document is

Dispute resolution in a charity context covers the policies, procedures and informal practices a charity uses to handle disagreements before they harm the organisation. Disputes can surface almost anywhere: between trustees over strategic direction, between staff over conduct or pay, between volunteers and managers, between the charity and a beneficiary who feels let down, or between the charity and a supplier, funder or fundraising partner.

Good dispute resolution isn't about avoiding conflict, it's about handling it predictably and fairly. Most charities benefit from a layered approach: open conversation first, then internal grievance or complaints procedures, then mediation or independent facilitation, and only as a last resort formal processes such as tribunals, court proceedings or referral to the Charity Commission.

Trustees carry ultimate responsibility. Under their general duties they must act in the charity's best interests, manage resources responsibly, and act with reasonable care and skill. That means ensuring the charity has workable processes for disputes, not leaving it to chance.

A charity without a grievance policy, a complaints procedure, or a clear path for raising concerns is storing up trouble, and making it harder to show the Commission that it's being properly governed.

How to use this document

  1. Put the groundwork in before anything goes wrong. Draft and adopt clear written policies covering trustee conflicts, staff grievances, volunteer concerns, beneficiary complaints and whistleblowing. Make sure every policy sets out who hears the complaint, timescales, appeal routes, and how confidentiality is handled. Review them at least every couple of years so they stay fit for purpose.
  2. Encourage early, informal conversations. The vast majority of disputes are best resolved through a direct, honest chat before anyone reaches for a policy document. Train managers, trustees and team leads to listen properly, acknowledge concerns, and act quickly. Early intervention stops small frustrations hardening into entrenched positions that are far harder and costlier to unpick later.
  3. Follow your internal procedure consistently. Once a matter becomes formal, stick to the written process. That means acknowledging complaints promptly, investigating fairly, keeping clear records, giving the person concerned the chance to respond, and providing a reasoned outcome in writing. Consistency matters, treating similar situations differently is one of the quickest ways to lose trust and invite challenge.
  4. Consider mediation before escalation. Where two parties have reached a stalemate but still need to work together, an independent mediator can unlock progress that internal processes cannot. Mediation is confidential, without prejudice, and often far quicker and cheaper than formal proceedings. It works particularly well for trustee fallouts, co-founder disputes, and disagreements between charities collaborating on joint projects.
  5. Know when to involve the Charity Commission or seek external help. Serious incidents, such as significant financial loss, safeguarding concerns, or disputes that paralyse the board, may need to be reported to the Commission as a serious incident. Employment matters may reach ACAS or a tribunal. Commercial disputes may need solicitors. Recognising the right moment to bring in outside help is a judgement trustees should be ready to make.

Common questions

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Common questions

Q What types of disputes most commonly affect charities?
The most frequent are trustee disagreements over strategy or governance, employment grievances, volunteer conflicts, complaints from beneficiaries, and disputes with suppliers or fundraising partners. Safeguarding concerns and whistleblowing disclosures also fall into this broader category. Each type tends to need a slightly different process, which is why most well-run charities have separate policies for grievances, complaints, whistleblowing and trustee conflicts rather than one catch-all procedure.
Q When should a dispute be reported to the Charity Commission?
Trustees should report a serious incident where there has been significant harm to beneficiaries, staff or the charity's reputation, a major loss of funds, or a breakdown that affects the charity's ability to operate. The Commission publishes guidance on what counts as a reportable serious incident, and trustees are expected to take a proportionate view. When in doubt, reporting is usually safer than not reporting.
Q Do trustees have to step away from decisions where they have a conflict?
In most cases, yes. A trustee with a personal or financial interest in a matter generally cannot take part in the discussion or vote, and the conflict should be recorded in the minutes. The charity's governing document may set out specific rules. Managing conflicts properly is one of the most scrutinised areas of charity governance, so getting it right protects both the trustee and the charity.
Q Is mediation legally binding for charities?
Mediation itself is a voluntary, confidential process, and discussions held during it are generally without prejudice. Any agreement reached can be written up and signed by the parties, and at that point it can become legally enforceable as a contract. Mediation is particularly useful where parties need to preserve a working relationship, which is often the case inside charities and between collaborating organisations.
Q Can a beneficiary sue a charity?
A beneficiary can bring legal action in certain circumstances, for example, over negligence, breach of contract, discrimination, or a safeguarding failure. However, most beneficiary concerns are better resolved through the charity's complaints procedure, and many regulators and ombudsmen expect internal routes to be exhausted first. A clear, accessible complaints process substantially reduces the risk of matters escalating to litigation.
Q What should be in a charity's complaints policy?
At minimum: who the policy applies to, how to raise a complaint, who will handle it, the timescales involved, how confidentiality and data protection are managed, what the possible outcomes are, and how to appeal. It's also worth signposting external routes such as the Fundraising Regulator for fundraising concerns or the Charity Commission for governance issues the charity cannot resolve itself.
Q How can small charities handle disputes without a big HR function?
Small charities can still manage disputes well by adopting simple, proportionate policies, using template procedures as a starting point, and being willing to bring in outside help, such as a mediator, HR consultant or legal adviser, for specific issues. Membership bodies like NCVO also offer guidance. The key is having something written down in advance, rather than improvising when tensions arise.
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Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.