Regulator announces investigations into 14 charities over failure to file accounts

19 Jan 2016 News

The Charity Commission has named a further 14 charities currently under investigation for failing to submit annual accounts for two years running.

Charity Commission

The Charity Commission has named a further 14 charities currently under investigation for failing to submit annual accounts for two years running.

The figure brings the total number of ‘double defaulters’ currently under scrutiny, to 88.

The total sum of funds unaccounted for by charities failing to submit accounts, currently stands at £68m, the regulator said.

Charities named today are those with an income of between £200,000 and £249,999, including the Bucks County Agricultural Association and East Anglia Transport Museum Society.

Carl Mehta, head of investigations and enforcement operations for the Charity Commission, said: “The message to trustees is simple; submitting this annual information is your legal responsibility, even if you delegate it to charity staff or your accountants to do”.

“We will continue to crack down on defaulters, showing that we will not tolerate charities that demonstrate contempt for the public and their donors by failing to meet reporting requirements.

“Charities are sent multiple reminders about their approaching deadlines, and with default notices. There is now an online tool which allows third parties to submit accounts, making the process easier for those involved – so there is no excuse for non-compliance.”

The regulator’s inquiry has resulted in millions of pounds of charitable funds being publically accounted for on the register of charities, Mehta said.

The regulator announced its first round of inquiries into double defaulters with an income of over £500,000, in September 2013. A second phase of the investigation was launched in November 2013, extending it to charities with an income of £250,000 and over, with the third phase today.

A fourth phase of the inquiry, to be launched in "early 2016" will focus on charities with incomes under £200,000, the regulator said.

The full list of charities named today include:

  • Keren Chasodim Ltd
  • Effective Intervention
  • Mesifta Talmudical College
  • Gableholt Limited
  • Little Oaks Brighton Company
  • Little Love Lane Pre-School
  • Gresley Old Hall Community Welfare Centre
  • Jewish Seminary for Girls
  • Bucks County Agricultural Association
  • The East Anglia Transport Museum Society Limited
  • The Addiction Recovery Foundation Ltd
  • Smartys Day Nursery
  • Coptic Orthodox Church Foundation Manchester
  • Rossington Miners’ Welfare Scheme

Today’s announcement follows the publication by the regulator of a list of excuses given by charities for not filing accounts on time. They included:

  • “I don’t have access to the internet”
  • “I’m not involved with this charity’s requirements, I am a trustee”
  • “I already did it…last year”.