More double defaulters added to Commission probe

The Charity Commission named more organisations that will be included into its inquiry into double defaulting charities.

The regulator first launched the class inquiry into charities that have failed to file annual reports, accounts and returns for two or more years in September 2013 the regulator, concentrating on charities with a last known income of over £500,000.

A second phase of the inquiry, covering charities with a last known income of £250,000, began in November 2013, extending to 40 charities with a last known income of £250,000.

On 3 March, it announced the inquiry would now also include 12 charities with a last known income of between £200,000 and £249,999.

The commission said that as at the end of February 2015, 74 charities had become part of the inquiry although 48 charities had now fully provided outstanding accounting information for around £48 million in total, and no longer formed part of its investigations.

Michelle Russell, director of investigations, monitoring and enforcement at the Charity Commission, said: “As we continue to target defaulting charities, the message to trustees is simple; submitting this annual information is your legal responsibility, even if you delegate it to charity staff or your accountants to do.

“We regularly remind charities throughout the year about their approaching deadlines, and have recently launched a tool which allows third parties to submit accounts, making the process easier for those involved – so there is no excuse.

“Our inquiry has already resulted in millions of charitable funds being publically accounted for on the register of charities, and we will continue to crack down on defaulters, showing that we will not tolerate charities that demonstrate contempt for the public and their donors by failing to meet reporting requirements.”

Expert professional help can make a significant difference to charities facing challenges in providing accounting information to Charity Commission, to help them provide all the information required to the appropriate deadlines. For more information on how Moore Thompson’s charities team can help, please contact us.

Posted in Charities News.