The Charity Commission is investigating 10 charities after serious concerns were raised by tax officials about £22m paid in cheques to a company in east London.
HMRC recently made an unannounced visit to a company in Hackney, in which 105 charities were found to have cashed cheques with it to a value of £22m between December 2021 and March 2023.
The charity regulator today announced it has opened a statutory class inquiry into 10 of the charities initially, but expects to extend its investigation over time.
It has also issued orders to temporarily restrict the charities from issuing cheques without its prior consent.
Trustees’ oversight probed
The 10 charities initially under investigation are Inspirations, Beis Aharon Charitable Trust Limited, Mifal Hachesed Vehatzedokoh, Friend of Beis Soroh Schneirer, One Heart – Lev Echod, Yad Vochessed Association Limited, Friends of Beis Chinuch Lebonos Trust, Chasdei Dov Trust, Friends of Mercaz Hatorah Belz Macnivka and the Rehabilitation Trust.
These charities have been prioritised, the commission said, after assessing the number of cheques issued and total value of those cashed.
The regulator aims to determine how these charities, several of which have the advancement of the Orthodox Jewish faith or education among their objects, have transferred funds.
It will also investigate how trustees had oversight of what happened to funds exchanged for the cheques, and if this cash has been used properly to support what the charities were set up to do.
The commission will seek to establish how trustees determined that these financial transactions were in their charity’s best interests.
All the named charities with publicly available contact details have been asked for comment.
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