The Charity Commission has opened its second regulatory compliance case into international aid charity Penny Appeal in five years.
A whistleblower’s complaint, seen by Civil Society, was recently submitted to the commission and raises various concerns regarding the financial and governance practices at the charity.
The allegations, all of which Penny Appeal denies, include plans to sell the charity’s headquarters, redundancies, secret meetings and exclusionary decision-making.
While Penny Appeal denied all allegations, it confirmed that it had commissioned an independent review into the complaints.
The regulator confirmed to Civil Society that it had opened a compliance case “to assess concerns and determine if there is a role for the commission”.
This follows a previous compliance case into the charity in June 2020, which resulted in it receiving an official warning, following several concerns raised about how it was managed.
Serious allegations
In their complaint, the whistleblower said some trustees and executive staff at Penny Appeal have held “a series of secret, off-the-books meetings without proper documentation or adherence to approved protocols” to discuss “major structural changes”.
These include the alleged sale of the charity’s Wakefield headquarters, redundancy of almost all remaining staff there and a relocation of operations to Birmingham.
Some key individuals, including trustees and employees, were allegedly excluded from these meetings and not informed about their content or that they were taking place.
The whistleblower also claimed that staff and trustees deemed disloyal had been removed, and that over 30 employees had been made redundant.
“Given the serious nature of these allegations, including the potential risk to the charity’s assets, the breach of established protocols, and the undermining of trust among stakeholders, we respectfully request that the Charity Commission immediately investigate these practices,” the complaint reads.
“Prompt action is essential to safeguard the charity’s assets and ensure that all proposed transitions and personnel changes comply with legal and ethical standards.”
Penny Appeal: ‘No plan to sell or relocate’
In response, Penny Appeal said it had “no current plans to sell or relocate from our Wakefield headquarters, and there are no planned redundancies”.
“As with all responsible charities, we keep our finances and operations under regular review and act accordingly – but we don’t foresee any changes to our staffing levels or office location in the near future,” a spokesperson said.
“The charity operates with robust governance procedures to ensure transparency, accountability, and proper documentation across all areas of our work.
“We take all concerns seriously. In the spirit of openness, we’ve commissioned an independent review into the complaints, led by experienced external specialists.”
The commission has notified Penny Appeal of its involvement but has not substantially engaged with the charity yet.
Penny Appeal’s spokesperson said the charity looks forward to “cooperating fully” with the regulator as it assesses concerns.
They added: “Penny Appeal remains fully committed to supporting our people, serving our communities, and upholding the values at the heart of our work.”
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