The Charity Commission has opened a statutory inquiry into a charity that provides legal advice to people after it failed to implement an action plan to address its issues.
The investigation will look at whether the charity is “operating in accordance with its objects for the public benefit”.
In March the regulator wrote to Legal Action issuing it with a plan and timescale for it to deal with regulatory issues that had been identified by the Commission over a four-year period. One of the trustees at Legal Action is also the trustee of another charity that is being investigated by the Commission.
Legal Action was brought to the attention of the Commission in 2010 over concerns that was operating outside of its objects and the regulator has since engaged with it on “various issues”, according to today’s announcement.
“The Commission monitored compliance and identified that the charity has failed to make a satisfactory response to its findings and conclusions and has not implemented or agreed to implement the action plan,” the statement from the Commission said.
Its investigation will also deal with the charity’s lack of cooperation and the trustees’ discharge of their duties.
Legal Action, which is also known as Charles Henry, was registered in 2003 and its objects are to provide legal advice to people who cannot afford it and promote welfare and debt assistance. Its website is offline this morning, and the charity did not respond to Civil Society News’ request for comment.
For the year ending March 2013 its income was £134,417 and its spending was £135,405. There are three trustees listed with the Commission; Kevin Gregory, Keith Gregory and Javaad Ahmed.
Investigation into St Augustine Housing
Kevin Gregory is also a trustee of the St Augustine Housing Trust, into which the Commission opened a statutory inquiry earlier this year over business rates.
St Augustine Housing Trust is a storage charity which the Commission says may become liable for business rates for its occupation of commercial property.
It is one of a number of charities that have been investigated for similar activity recently. Charities receive 80 per cent mandatory relief on business rates on any property they occupy. Some commercial landlords with empty property, who are liable for the rates on those buildings, have approached charities and offered them donations to take on leases, as part of a scheme to avoid that tax.
St Augustine Housing Trust is also in a dispute with the Commission over the filing of its accounts.
The charity has appealed to the Charity Tribunal. On 3 September the Tribunal refused the charity’s application for extension and the case has been listed for final hearing on 6 October.
