The Charity Commission has launched a statutory inquiry into an Islamic charity over its funding of a non-charitable company.
The concerns relate to Islamic Human Rights Commission Trust which the commission has been engaging with since May.
In the charity’s accounts for the year ended June 2024, it made a number of grants to the Islamic Human Rights Commission, a non-charitable company of the same name, for various appeals and projects.
A statutory inquiry against the charity was launched on 8 October after trustees were asked a range of questions about the funding of an event where alleged inflammatory statements were made.
The regulator is investigating if publications made and the charity’s support of the event with the non-charitable company were in line with its objectives.
It will investigate the trustee’s administration, management and governance and their compliance with legal duties and responsibilities.
The commission will also assess the charity’s activities in relation to its purposes and best interests as well as its relationship with the non-charitable company.
Previous warning
An official warning was previously issued to the charity on 28 March 2023 over how it managed its relationship with the non-charitable company.
After its inquiry is concluded, the commission will publish a report detailing the outcomes and issues examined.
The scope of the inquiry may be extended if additional regulatory issues emerge.
The commission added that this escalation “reflects the seriousness” of its concerns about the relationship between the charity and the non-charitable company and its impact on public trust.
The Islamic Human Rights Commission Trust has been contacted for comment.
Earlier this year and not referred to in the commission’s inquiry statement, the non-charitable company wrote to councils and universities urging them to boycott Holocaust Memorial Day.
The company argued that it is “morally unacceptable” that the war in Gaza is not included as a “genocide” alongside the Holocaust.
