A statutory inquiry into indebted residential care charity William Blake House Northants has prompted further investigations into two organisations with the same trustees.
The Charity Commission announced today it is investigating education charity Steiner Friends over its management of potential conflicts of interest.
It also announced an inquiry into unauthorised payments to a trustee of the Shoosmith Gallery charity, which operates an art gallery.
William Blake House’s inquiry was opened in February after concerns were raised over the fact that it owes £1.54m in unpaid taxes to HMRC and made substantial payments to a firm linked to its chair.
Its trustees have been excluded as part of the investigation. Last month, the commission said William Blake House had entered administration.
Currently, Bushra Hamid is listed as chair of all three charities on the commission’s website.
Unauthorised trustee payment
The commission said the shared trusteeship of the Shoosmith Gallery and William Blake House prompted it to assess the former charity.
Its review of the gallery’s accounts raised concerns that a trustee has received payment for their role.
This was despite the charity’s governing document expressly prohibiting the employment of a trustee without the prior written consent of the Commission, which was neither sought nor given.
The commission’s inquiry will seek to establish the basis on which the trustees considered employment of a trustee to be in the charity’s best interests.
It will examine the extent to which the trustees have complied with the charity’s governing document, including the prohibition on the employment of a trustee without the prior consent of the commission.
The commission will look at their management of potential conflicts of interest and whether there has been any unauthorised private benefit to the trustees or connected parties.
It will also consider whether the trustees have ensured the charity is operating in furtherance of its charitable objects.
£0 income reports questioned
During the course of its William Blake House inquiry, the commission found that it has an established financial and personal relationship with Steiner Friends, which has the same trustees.
The commission is seeking to establish how potential conflicts of interest arising are managed and whether the charity’s funds have been properly applied in furtherance of its charitable objects.
Steiner Friends reported £0 income in its annual returns for the years ended 31 March 2022, 2023, 2024 and 2025, which would be below the threshold for submitting accounts to the commission.
However, following a review of the charity’s bank accounts, the commission is concerned that the charity’s income may in fact have exceeded the threshold, meaning that the trustees would have failed to comply with their reporting obligations.
The inquiry will examine the extent to which the trustees are complying with their statutory accounting and reporting responsibilities, including the accuracy of the information submitted to the commission in the charity’s annual returns.
It will look at the financial management of the charity, including whether its funds have been properly applied in furtherance of its charitable objects.
The commission will consider the management of potential conflicts of interest and connected party transactions, and whether there has been any unauthorised private benefit to the trustees or connected parties.
It will also investigate whether any of the charity’s property has been put at risk.
Shoosmith Gallery and Steiner Friends have been asked to comment.
