The Charity Commission recently launched a statutory investigation into The Voice of Truth (TVOT) registered charity.
The inquiry considered potential issues concerning misconduct and mismanagement of the administration of TVOT, failure to keep sufficient accounting records and the possibility of supply of false or misleading information to the Commission.
The Commission in concluding the inquiry helpfully set out issues for the wider sector to consider, which included the following:
- Charity trustees must work together to further the objects of the charity they serve and they must demonstrate how their charitable purpose dominate everything that they do. All trustees are jointly and equally responsible for the events that occur within a charity.
- Trustees must ensure that adequate financial and administrative controls are in place, that meetings and decisions are properly recorded and the records of the charity are kept in a safe location.
- Trustees must actively manage any conflicts of interest which may result from a family or business relationship. They should step back from or avoid any situation where a conflict exists, or is likely to arise, if it is clear the conflict cannot be adequately managed, even if this means, for example, that additional impartial trustees are appointed or that the affected trustees resign.
Whatever the challenges faced by your charity or social enterprise, if you think you might need legal advice to support you through, we are always happy to arrange an initial conversation to see if we can help. Please contact our Charities, Education and Social Enterprise team.