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A B C D E F G H I J K L M N O P R S T V W Y

Charity Commission continues to come down hard on double defaulting charities

Charity Commission continues to come down hard on double defaulting charities
Monday 18th May 2015

Two new statutory inquiries opened this year by the Charity Commission further demonstrate its ongoing approach to charities who repeatedly fail to submit regulatory reports.

The inquiries were opened into the Chevras Machzikei Mesifta (registered charity number 1104022) and the Bfon Trust (charity registration number 1112466) for repeatedly defaulting on the submission of annual accounting information.

In both cases, the charities concerned had a history of late filing and despite bringing their records up to date, their most recent accounts for the last financial year were not filed on time.

As part of its recent stance as a robust regulator, the Charity Commission has for some time now made it clear that charities who fail to file accounts and reports on time on multiple occasions will be the subject of regulatory action. Late filing is itself an offence under section 173 of the Charities Act 2011 but the Commission also considers that it might be symptomatic of more serious abuses within a charity.

Comment:

In many cases, double defaulting charities do appear to be able to shake off a statutory inquiry by simply ensuring that their records are brought up to date.

However, the opening of a statutory inquiry can do damage to a charity’s reputation. Equally, the Protection of Charities Bill includes a greater range of regulatory powers exercisable by the Charity Commission. So for example, the Bill includes a power for the Commission to impose official warnings on a charity that will appear against its entry on the Register – it is possible that the Commission will make use of this particular power in cases of double defaulting charities. Such a warning, visible to the general public, might impact upon the level of funds a charity can attract from both funders and general donations.

Our advice therefore is to ensure that your charity’s reports, returns and accounts are submitted to the Charity Commission on time.


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