Charity regulator launches inquiry into financial concerns at The Knightland Foundation
The Charity Commission has opened a statutory inquiry and appointed two interim managers to a London-based grant-making charity, due to serious concerns surrounding the charity’s governance and finances.
The Commission has engaged with the Knightland Foundation since 2016, when its proactive review of the charity’s accounts revealed a number of concerns, including around insufficiently documented loan agreements and transactions to connected companies. In March 2017, the Commission issued the charity’s trustees with an action plan to address these matters.
The Commission continued to monitor the charity and due to unresolved concerns, it escalated its engagement to a statutory inquiry on 24 February 2021. An inquiry gives the regulator access to the full range of its legal and enforcement powers.
The inquiry will examine whether potential conflicts of interest and connected party transactions have been properly managed and whether there has been any unauthorised trustee benefit. It will also look at wider concerns around the charity’s financial and resource management and the trustees’ compliance with their legal obligations.
The Commission has also exercised its powers under the Charities Act 2011 to appoint joint interim managers, John Dickinson and Joseph Colley, of Carter Backer Winter LLP, on 7 April 2021 to help address the concerns at the charity.
Notes to Editors:
- View the charity’s entry on the register of charities.
- The trustees have appealed the appointment of the interim managers to the Charity Tribunal and the hearing is expected to take place in early summer.
- The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its purpose is to ensure charity can thrive and inspire trust so that people can improve lives and strengthen society.
- The Commission may extend the scope of the inquiry if additional regulatory issues emerge.
- It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were. Reports of previous inquiries are available on GOV.UK.
- Section 76(3)(g) of the Charities Act 2011 gives the Commission power to appoint interim managers to a charity. Interim managers are appointed as a temporary and protective measure where the Commission has identified misconduct and/or mismanagement in the administration of a charity, or where there is a need to protect a charity’s property.
- This appointment is a temporary and protective power that will be reviewed at regular intervals. It will continue until the Commission makes a further order for its variation or discharge.
Latest News from
Charity Fraud Awareness Week 202121/09/2021 09:10:00
Get involved with Fraud Awareness Week (18-22 October) and help protect your charity from fraud and cybercrime.
Lincolnshire based animal charity wound up and chair disqualified after serious mismanagement03/09/2021 15:10:00
The Charity Commission’s statutory inquiry into the Alternative Animal Sanctuary found serious failures in the charity’s governance and financial management.
Charity Commission concludes compliance case involving The Runnymede Trust01/09/2021 16:10:00
The Charity Commission has concluded its engagement with The Runnymede Trust, after concerns were raised about the charity’s compliance with rules on charities and political activity.
Charity Commission announces statutory inquiry into the Olive Grove Foundation13/08/2021 10:20:00
The Charity Commission has opened a statutory inquiry into the Olive Grove Foundation over concerns about the charity’s governance and financial management.
Charity Commission launches statutory inquiry into MB Foundation11/08/2021 15:05:00
The regulator has opened a statutory inquiry into the MB Foundation (also known as the Mossad Horav Aryeh Halevy) over serious financial and governance concerns.
Charity regulator announces inquiry into Care4Calais06/08/2021 13:38:00
The Charity Commission yesterday announced a statutory inquiry into serious governance concerns identified at Care4Calais.
Regulator bans trustee of multiple inactive charities for ‘elaborate deceit’23/07/2021 10:20:00
The Charity Commission has uncovered a trustee who controlled multiple charities and misled the regulator about his identity
“No room for complacency” – charity regulator welcomes rise in trust, but reminds charities that public expectations remain high19/07/2021 09:20:00
New research shows trust in charities is gradually recovering, to a 6-year high, and that the pandemic is having an uneven impact on charities.