The Charity Commission has announced that it has opened a statutory inquiry into an animal rescue charity after “serious financial concerns” were raised in a police investigation.
Animal Lifeline, based in Stoke-on-Trent, rescues and rehomes dogs around north Staffordshire and south Cheshire.
The regulator opened its statutory inquiry into the charity on 16 February over financial concerns which had come to light as part of an ongoing investigation by Staffordshire Police.
The inquiry will examine the extent to which the trustees are complying or have complied with their legal duties in respect of the charity’s governance and management.
It will pay particular regard to the financial management of the charity and the extent of any misuse of the charity’s funds, as well as whether there has been any unauthorised private benefit to the trustees or conflicts of interest.
Staffordshire Police said in a statement: “A 44-year-old woman, from Stone, was arrested on Saturday 14 February on suspicion of fraud by abuse of position, fraud by false representation and money laundering, following a report of alleged business fraud.
“A 68-year-old woman, from Stoke-on-Trent, was also arrested on Sunday 15 February on suspicion of fraud by abuse of position.”
Both have since been released on conditional bail.
Staffordshire Police said it is working closely with the commission as part of its investigation, which remains “at an early stage”.
A spokesperson for Animal Lifeline said it would cooperate fully with the commission and police but denied that the charity had “engaged in wrongdoing or misused charitable funds”.
“Our priority remains the welfare of the dogs in our care and the continued support of the community that relies on our rescue and rehoming services,” they said.
“Animal Lifeline continues to operate as normal, and the day-to-day care of animals remains unaffected.
“Appropriate governance measures are in place to ensure the charity continues to operate smoothly while the inquiry is ongoing.”
Recent financial deficits
Animal Lifeline’s most recently filed accounts, for the year ending 31 December 2024, showed a total annual income of £298,000 and expenditure of £434,000.
The charity previously recorded an operating deficit of just under £100,000 for its accounts for its 2023 accounts.
In 2020, almost 7,000 people signed an online petition calling on the commission to investigate concerns about how the charity was being run.
At the time, the Charity Commission gave Animal Lifeline formal regulatory advice around “governance issues”, while the RSPCA said it had not received a formal report about animal welfare concerns.
