Charity regulator reveals an increase in compliance investigations

The Charity Commission has released new figures which show that the number of compliance cases it is investigating has risen by 8.5 per cent.

In the previous twelve months, up to and including March 2016, the charity regulator opened 1,261 operational compliance cases.

Transparency information on monitoring cases, which has been released for the first time, showed 414 cases had been opened.

Monitoring cases permit the commission to keep checks on charities where it is felt there is cause for concern and can include contacting and interviewing trustees, visiting the charity’s premises and inspecting its financial records.

Operational compliance cases, which are not deemed to be formal investigations, target any trustee failures and weaknesses which the Commission has identified.

Charities that attracted the most attention from the Charity Commission include those involved in education and training or where beneficiaries are children and younger people.

Armed forces charities were the least likely to fall under the Commission’s spotlight.

Smaller charities with annual incomes of less than £25,000 were the largest group deemed to require monitoring, with 120 cases opened. However, operational compliance cases were more likely amongst organisations with incomes of more than £500,000 a year.

New charities that had been operational for a year or less were the least likely to be examined whilst those that had been registered for more than ten years were the most likely to be scrutinised.

Moore Thompson’s audit team has extensive experience of working with charities to ensure that their financial governance has a clean bill of health. We are also keen to offer our expertise to assist trustees in maintaining and improving it. For more information, please contact us.