Penny Appeal has denied that some of its funds may have been transferred to extremist organisations in Gaza, after allegations were reported in national media.
The Mail on Sunday reported that the charity held an emergency meeting in April 2024, in which its executives were warned that £350,000 of its money could have been given to “Hamas and other terror-related entities” as distribution updates had yet to arrive.
According to the report, Penny Appeal had transferred the money to British compliance firm Programmes for NGOs (P4NGOs) to deliver aid into Gaza but was unclear which local organisations had received the money at the time.
In a statement, Penny Appeal said that the donation to P4NGOs was made “following due diligence, production of a project budget” and that the charity received a project completion report in June 2024 detailing the expenditure on the ground.
“We have no reason to suspect that these funds were not used for the humanitarian purposes they were intended,” the statement reads.
“If there were credible concerns raised with the chair that funds could have reached the hands of extremists, this would have resulted in an internal investigation and reporting to the Charity Commission.
“This was not the case. We are confident the funds were used as intended, and are enormously proud of the work we deliver to support vulnerable communities around the world.”
The charity added that it “takes a zero-tolerance approach to extremism, radicalisation and terrorism in all forms”.
‘Operational constraints not evidence of wrongdoing’
A spokesperson for P4NGOs also rejected the suggestion that any proscribed group in Gaza received funds.
“Based on the information, documentation, due diligence processes, and monitoring available to us, we are not aware of evidence suggesting project funds were diverted from their intended humanitarian purpose,” they said.
“The project operated through established humanitarian delivery mechanisms, with the majority of procurement and operational activities managed from Egypt.
“Aid convoys were handed over through agreed humanitarian arrangements at the time, including transfer to the independent Palestinian Red Crescent for onward receipt and distribution.”
They added that unspent funding of £10,746 was returned to Penny Appeal after it sent a project completion report in June 2024.
“Humanitarian operations during the Gaza conflict took place in an exceptionally challenging environment, but operational constraints should not be interpreted as evidence of wrongdoing,” they said.
The Charity Commission opened a compliance case into Penny Appeal last year after various financial and governance concerns were raised.
A spokesperson for the commission said its case is ongoing and that it met Penny Appeal trustees on two dates in February this year.
Founder Adeem Younis left Penny Appeal in January, which the charity said marked “a new chapter of governance”.
