UK-based Islamic charity Penny Appeal has announced that it “has entered a new chapter of governance” after its founder stepped down as a trustee.
According to a document filed with Companies House, Adeem Younis’s trusteeship ended on 17 January.
Younis set up Penny Appeal in 2009 to provide poverty relief, emergency aid and healthcare across Asia, the Middle East and Africa.
Penny Appeal, which is subject to a Charity Commission compliance case, told Civil Society that “following a long-standing and constructive engagement” with the regulator, it has entered “a new chapter of governance”.
“As part of this, the time is right for a change, so that the organisation can build on its foundations and grow successfully into the future under the stewardship of our new board of trustees,” a spokesperson said.
“As part of this, this board now has no affiliation with the previous board.”
Over the last few years, the charity has faced investigations by the Fundraising Regulator, the commission and Information Commissioner’s Office.
The commission opened its current regulatory compliance case into the charity last year after a whistleblower raised various financial and governance concerns.
Governance and operational concerns
Over the past seven months, Civil Society has received multiple emails from a whistleblower with governance and operational concerns at Penny Appeal.
These include targeted redundancies, alleged bullying, preferential staff treatment, secret meetings and opaque decision-making that put donated assets and programmes at risk.
In one email, the whistleblower alleged that Younis was removed from the charity’s board following a vote by other trustees, “the latest development in a prolonged internal dispute”.
They also reported “a steep decline in donations, cancelled events, loss of flagship partnerships and legacy projects left incomplete”.
“Ramadan 2025 is described by some as the charity’s weakest in a decade,” they said.
Accounts for the year ending 31 December 2024 show that Penny Appeal received £12.5m in donations and legacies in 2024, a 44% decrease on the £22.1m received the previous year.
The whistleblower said: “A number of us have raised formal concerns internally and with regulators because we fear for the charity’s assets and the people it serves.
“We want transparency, protection for donors and an independent review so the charity can be put back on a stable footing.”
Penny Appeal: ‘Claims don’t reflect progress made’
Penny Appeal rejected the nature of the claims made, which “don’t reflect the organisational progress that has been made at Penny Appeal since 2024”.
The spokesperson said historic engagement with the commission identified several issues associated with the charity’s previous governance, including insufficient record-keeping.
Citing a previous compliance case, which resulted in an official warning issued in 2023, they said the charity has continued to implement the commission’s recommendations, alongside its own independent review of governance.
“As part of this programme of enhancement, since late 2024, significant changes have been made to our organisation, including a new and experienced board of trustees,” they said.
The spokesperson acknowledged that income fell in 2024, with some redundancies made at the end of the year.
“This was a thorough process managed by an independent HR consultancy,” they said.
“We’ve also been able to reduce expenditure on contracts and the organisation is now on a stronger financial footing.”
They added: “Penny Appeal is now in a new and enhanced period of governance.
“We’re looking to the future with confidence, honouring our commitment to serving those most in need, transforming lives and empowering communities across the globe.”
A spokesperson for the commission said: “We have an ongoing regulatory compliance case into the Penny Appeal to assess concerns raised with us and are actively engaging with the charity’s trustees.”
