The Charity Commission has opened a statutory inquiry into concerns over private benefit and financial mismanagement at a Surrey-based charity that loaned £900,000 to a trustee’s son.
In a statement on 11 March, the regulator said that “serious financial concerns” had come to light during engagement work with the Allen Trust, which is based in Cobham. It describes its objectives as being “for the relief of persons anywhere in the world who are in conditions of need, hardship or distress”.
The Charity Commission became involved after the Allen Trust’s accounts for the year ending March 2024 revealed a balance of just under £1m owed to the charity.
The commission said this sum related to a loan between the Allen Trust and a family member of one of its trustees, which the accounts said is the son of the chair Tony Allen. The regulator said this had originally been made in 2018 with the intention it be repaid in full with interest within three years.
But, trustees said, the loan had been extended for a further five years in 2021, meaning full repayment is due during 2026.
“It is not clear the decision to make this loan, or extend its terms, was in the best interests of the charity,” the regulator said in its statement.
“During the course of this engagement, other serious financial concerns came to light, including evidence of other possible private trustee benefits and concerns around governance and unmanaged conflicts of interest.”
The Charity Commission said its inquiry will be examining the extent to which trustees are complying with legal duties regarding the administration, governance and management of the trust.
Civil Society has approached the Allen Trust for comment.
Sikh gurdwara warned over governance but cleared of political activity
Separately, the Charity Commission issued an official warning to Sri Guru Singh Sabha, Slough, which promotes the Sikh religion and education in the Punjabi language and culture.
The reprimand came after the regulator concluded an investigation into the charity’s accounting, with reports being filed late in five non-consecutive years, and alleged political activity in breach of charity law at its premises.
The latter issue was raised with the regulator in 2019, prompting the opening of a regulatory compliance case. Concerns centred on two boards making reference to Khalistan, the name of a hypothetical independent Sikh state in northern India.
Representatives from the regulator and charity met in 2020 to discuss how this material “furthered [the charity’s] objects”, as well as exploring its late accounts filing, with the Charity Commission continuing to investigate thereafter.
In December 2024, it issued a regulatory action plan to trustees asking them to undertake measures including improving governance documentation, implementing safeguarding procedures and getting financial information in order.
“The charity has acted on the regulatory action plan and as such, the commission is closing its case,” the regulator said.
“However, the commission has determined the repeated late filing of accounting documents, some aspects of which the charity’s auditors found concerning, amounts to a breach of trust or duty and/or other misconduct and/or mismanagement.”
As a result, it issued the charity with an official warning.
Finding ‘enables charities to honour important aspects of faith’
On the allegations relating to the boards, the commission said that following a “substantial” review of evidence, it had accepted that Khalistan has an important religious meaning within Sikhism.
“In this case, the boards simply displayed the word Khalistan, without other wording or any image,” the commission said. Since they did not contain material promoting Khalistan as an independent state, the regulator concluded the charity was acting within its religious objects.
Joshua Farbridge, head of compliance visits and inspections, said the finding “will help bring clarity to others – ensuring religious charities are freely able to honour an important aspect of their faith without breaching the laws that apply to all registered charities”.
Civil Society has approached Sri Guru Singh Sabha for comment.
