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Commission figures well received

Commission figures well received
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Commission figures well received

Finance | Gareth Jones | 1 Jul 2005

Nearly £20m of charitable assets came under management in the six receiver and managers cases concluded in 2004-05.according to figures published by the Charity Commission for the first time.

Receiver and managers are interim managers temporarily put in charge of a charity when the Commission has serious concerns about how an organisation is being run. Unlike with commercial organisations, their appointment does not suggest that the charity is about to go into receivership. Instead the manager is appointed to take charge of the administration of the charity until the difficulties that led to the appointment are resolved.

The Commission has been criticised heavily for its use of this statutory power, said by some to be particularly invasive and unreasonable given the amount of money that such appointments can sometimes cost the charity. It has been used 51 times since its introduction in 1993, and represents 1.5 per cent of all inquiries conducted by the Charity Commission.

John Weth, chairman of the Association for Charities, welcomed the Commission's approach and said: "We have over several years, expressed concerns about aspects of such appointments. We trust that, with a new Commission managerial regime in place since autumn 2004, the consequent tightening of lines of accountability within the Commission, the close attention now being paid to the appointment and monitoring of interim managers and the new transparency of information provision, we shall see far fewer, if any, causes for concern in this area."

 

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