The Charity Commission has concluded its investigation into four charities as part of its ongoing £22m cashed cheques probe.
In April 2025, the regulator opened a statutory class inquiry after 105 charities were found to have cashed cheques that were then exchanged for cash to a value of £22m between December 2021 and March 2023.
There was concern that the cheques being issued were blank (signed but with the payee and amount left blank) or open (signed and a value added but with the payee left blank).
The inquiry is looking at the practice of issuing cheques and whether the trustees have complied and are complying with their legal duties and responsibilities to protect and account for charity property.
Charities have entered the inquiry in tranches, with the regulator initially investigating 10 organisations and later expanding its probe to 32.
Today, the regulator announced that it had removed the Z.S.V. Trust, Bnois Jerusalem Schools, Forty Limited and Friends of Yeshiva Daas Sholem Shotz from its class inquiry.
It found misconduct and/or mismanagement in all four cases “as the use of blank or open cheques is high risk and lacks the effective oversight of charitable spending that the regulator would expect from trustees”.
One charity removed from the register
All four charities entered the regulator’s class inquiry on 31 July 2025 after exchanging cheques for cash at a Hackney-based company.
The Z.S.V. Trust issued 48 cheques totalling £76,835 to give beneficiaries open cheques, so that they could decide how to use the funds, in line with the charitable purpose.
Bnois Jerusalem Schools issued 15 cheques totalling £80,370, most commonly to provide salary payments to its staff.
This was mainly done when a member of staff had a problem with their bank or was overdrawn and did not want to pay the funds into their bank account.
The regulator said an individual having a bank account in overdraft is not “a justifiable reason to provide payment to individuals via an open cheque”.
Forty Limited issued 19 cheques totalling £58,800 to support an overseas charity. The cheques had been issued with the payee section left blank to allow the recipient to obtain cash in the UK before taking it overseas.
The charity said it had no direct relationship with the entity where the cheques were cashed, and that it was at the beneficiaries’ discretion how the cheques were cashed to obtain the required funds.
Friends of Yeshiva Daas Sholem Shotz issued 66 cheques, totalling £261,330.
The charity appointed a new trustee board in August 2024, which determined that it could not operate.
The regulator said it was concerned about whether the new trustees had fully understood their legal duties and responsibilities when they took over the charity’s operation.
After engaging with them, the regulator helped them wind up the charity, which was removed from its register on 20 January 2026.
Administrative challenges had arisen due to the charity’s former trustees not passing on financial and administrative records when the new trustees were appointed.
‘Charities shouldn’t issue blank or open cheques’
The regulator issued advice, guidance and action plans to the three charities that are still active to improve their governance.
It also reviewed grantmaking processes at two of the four charities and identified how these could be strengthened.
The trustees of Z.S.V. Trust said the charity decided to stop issuing open cheques before the regulator contacted them.
The charity proactively strengthened its financial controls and added that the payee’s name should be inscribed on the cheque before signature.
Forty Limited confirmed that it no longer issues cheques with blank payees, does not hold a cheque book and has not used cheques for several years. All expenditure is now made via bank transfer.
Although the Friends of Yeshiva Daas Sholem Shotz no longer exists, the regulator issued advice and guidance to ensure the new trustees understood their duties and responsibilities in any future trusteeship roles.
“Charities shouldn’t issue blank or open cheques,” the regulator said.
“To do so is misconduct and/or mismanagement in the administration of the charity.
“In most cases charities should use the regulated banking sector when transferring charitable funds.
“It’s difficult to see, where regulated banking services are available, how trustees could show they discharged their legal duties if they don’t use the regulated banking sector in order to secure or transfer the charity’s funds.”
