The Charity Commission has closed a compliance case into the Jim Ratcliffe Foundation after investigating allegations that it acted outside of its charitable objectives.
Earlier this year, the regulator opened a case into the trust after the Guardian reported that it had helped fund a multi-million-pound luxury skiing clubhouse in France, open only to paying members.
However, the regulator today announced that it found the actions that brought the trust under scrutiny did pass the public benefit test and furthered its charitable purpose.
The trust, founded by eponymous billionaire reported to be the second wealthiest man in the UK in 2019, was set up to relieve poverty, promote amateur sport and promote the preservation of the natural world.
Ski club donation did provide public benefit, regulator says
Between 2019 and 2020 the charity provided grants of €12.5m towards the construction of the Club Des Sports Courchevel’s (CDS) ski clubhouse building.
The exclusive members club, known as Courchevel Ski Club (CSC), operates from one room in the building. It charges members €25,000 to join alongside a €6,000 annual fee.
However, the regulator’s investigation uncovered that the CSC only accounts for 4% of the clubhouse and that the CDS receives the income from this membership.
CDS charges other members much less, equivalent to £25 per month, the regulator found.
“The Commission is satisfied that the facilities and ski programme operated by CDS further the charity’s purposes with other trading activities undertaken to generate income,” it said.
“The regulator has therefore determined that the decision taken by the charity to provide funding met the public benefit test. Changes have since been made to the website of CDS to make the charitable benefit they provide clearer.”
All trustees are connected to founder’s companies
The Commission also examined the trustee’s relationship with its founder and sole donor Ratcliffe to determine whether there were any conflicts of interest.
It was satisfied that the founder did not influence the charity’s decision on how to use his donations.
However, all three of the charity’s trustees work for one of the companies to which Ratcliffe is connected.
“The Commission has identified this may cause a perception of bias or lack of independence which is a risk to the charity’s reputation,” the regulator states.
While Commission found there was no conflict of loyalty identified, the public may believe one to exist, it said.
As such, the trustees have agreed to appoint a trustee who is not employed by a company connected to the founder.
Regulator: ‘We have no evidence to uphold allegations made against the charity’
Tracy Howarth, assistant director of casework at the Charity Commission, said: “On this occasion, our case confirmed that the Ratcliffe Foundation had acted in its charitable interests.
“We welcome the decision taken by trustees to agree to appointing another member to their board and thank them for their cooperation. We have found no evidence to uphold allegations made against the charity and as such, there is no further role for us at this time.
“We advise all charities to ensure they communicate about charitable activities in a way that is clear and transparent, so that the public can have confidence in how their donations are being used. We encourage charities to ensure their partners do the same.”
Civil Society contacted the charity for comment, but has yet to receive a response.
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