A heritage charity has had its bank accounts frozen as the Charity Commission investigates its handling of a potential legacy gift left by a former trustee.
The commission announced yesterday that it had opened a statutory inquiry into Brighton and Hove Heritage Commission over concerns of mismanagement, financial misappropriation and “poor financial controls”.
In June 2024, the regulator contacted the charity over concerns about alleged financial misappropriation and poor financial controls.
However, while the regulator was engaging with the charity, a former trustee died, leaving the charity with a potential legacy.
There has since been an escalating dispute between individuals involved in the charity, the commission said, including over its administration and the handling of the potential legacy.
The regulator subsequently identified that the charity’s governing document contains “irreconcilable and contradictory provisions as to how trustees are appointed”.
The commission said that despite its encouragement, mediation has not taken place, with various attempts to find a solution having failed.
During the course of the commission’s engagement, one party to the dispute also raised new, additional allegations about the potential misappropriation of funds, leading to the escalation to a statutory inquiry.
Charity’s bank accounts frozen to protect assets
The regulator’s investigation will now examine whether the trustees are complying with their legal duties and responsibilities in respect of the administration, governance and management of the charity.
In particular, it will consider whether the governing document is fit for purpose and whether any failings or weaknesses identified in the administration of the charity are a result of misconduct or mismanagement by its trustees.
As part of its inquiry, and to protect the charity’s assets, the commission has temporarily frozen the charity’s bank accounts.
According to the charity’s most recently filed accounts, it recorded a deficit in the year ending 31 July 2025, with an annual income of £4,550 and costs of £17,500.
The charity also recorded a deficit of around £24,000 in 2023-24.
Civil Society has contacted the Brighton and Hove Heritage Commission for comment.
