The Charity Commission's updated guidance: How to conflict-proof your charity?
The Charity Commission has issued updated guidance on conflicts of interest. In this article,...
LBMW has an experienced team of charity law solicitors who regularly interact with the Charity Commission and provide a full support service to charities that are subject to investigations and inquiries by the Regulator.
In particular, we:
- Assist with responding to regulatory inquiries and information requests;
- Provide legal advice and representation during Charity Commission visits;
- Provide support in handling allegations of mismanagement or misconduct;
- Assist with submitting responses to, or appeal against investigation findings;
- Review and improve governance and compliance procedures to prevent further regulatory interference.
Our goal is to support the trustees in achieving a fully compliant charity which can demonstrate to the Commission that it is being run appropriately, and in compliance with the law and regulations.
Contact our expert charity lawyers today
If you require any assistance with charity and not for profit law, contact our charity law team:
Phone no.: 0207 222 5381
Email: khalid.sofi@lbmw.com
You can also make an enquiry by filling out the Enquiry Form on www.lbmw.com.
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How LBMW's Charity Law Solicitors can help you handle Charity Commission Investigations and Inquiries
LBMW charity law solicitors have a depth of experience in providing legal representation to charities that are being subject to a Charity Commission investigation or inquiry.
We guide clients through every step of the process, preparing all necessary documentation, drafting detailed responses to issues raised by the Regulator, and addressing compliance and regulatory matters effectively.
Our team works closely with the trustees of the charity during the process, with a keen eye to mitigating risks and safeguarding the charity's reputation.
Assistance with responding to regulatory enquiries and information requests
The Charity Commission has the power to request and gather information in relation to an alleged regulatory issue. Whether the Regulator requests information from your charity in relation to the management of conflicts of interest, internal financial controls, or points out safeguarding or operational issues, our team is on hand to help you understand your charity's legal position and assist with responding to the Regulator.
We draft detailed and comprehensive replies to address regulatory issues, while always maintaining a focus on protecting the charity's operations and reputation.
Reviewing and improving governance and compliance procedures
Following a Charity Commission inquiry or investigation, our team of charity lawyers offers comprehensive governance reviews for charities, ensuring that the charity aligns with regulatory standards, and that the trustees understand their legal duties.
Among other matters, we assess governance structures, policies and procedures, internal financial controls, and operational issues to identify areas of improvement. We provide tailored recommendations to charities to strengthen their accountability and compliance.
We also provide training to trustees in relation to their legal duties, with the ultimate goal of avoiding further interference by the Regulator and restoring confidence in the operation of the charitable organisation.
Support in submitting responses or appeals against investigation findings
We offer dedicated support to charities seeking to appeal the findings of a Charity Commission investigation.
We assist with compiling an action plan to challenge the findings, gathering and presenting relevant evidence, and crafting arguments to present the trustees' position.
Whether through seeking a review of the investigation from the Regulator directly, or through a formal appeal process in the Charity Tribunal, we aim to achieve a fair resolution to allow your charity to continue operating with confidence and integrity.
Frequently asked questions about Charity Commission Investigations and Inquiries
What triggers a charity commission investigation?
An investigation by the Charity Commission can be triggered by a variety of issues related to concerns over mismanagement, misconduct, or non-compliance with the law.
Common triggers include public complaints and whistleblowing about the charity's activities; financial irregularities such as the misuse of funds; or breaches of regulatory requirements including not submitting accounts. Negative media attention can also prompt scrutiny from the Regulator.
Charity Commission investigations and inquiries aim to protect the charity's assets and beneficiaries, while also ensuring regulatory compliance and restoring public confidence in charitable giving.
What are the powers of the Charity Commission?
The Charity Commission has broad regulatory powers to ensure compliance with charity law. These powers include but are not limited to:
- Information gathering in respect of an alleged regulatory issue;
- Opening statutory inquiries into potential misconduct or mismanagement;
- Imposing protective measures on the charity such as freezing the charity's bank accounts, or removing trustees;
- Appointing an interim manager to manage the charity's affairs; and
- Taking enforcement actions such as referring cases for criminal prosecution.
The role of the Charity Commission is to ensure that charities in England and Wales operate transparently, in compliance with the law, and for the public benefit.
How can LBMW's legal representation help during an investigation?
Legal representation provided by LBMW's charity team can provide significant benefits to a charity that is being investigated by the Regulator.
Apart from assisting the charity with understanding the Regulator's concerns and the charity's legal position, we provide expert legal advice on how to respond appropriately and comprehensively to the Charity Commission's inquiries in a way that should satisfy the Regulator. We also provide help with preparing and submitting relevant evidence.
As part of assisting clients with understanding the complexities of regulatory intervention, we always maintain a focus on the importance of protecting the charity's reputation too.
Can charities appeal the outcome of an investigation?
It is possible for charities to appeal the outcome of a Charity Commission investigation if they believe that the decision is unfair or incorrect. Appeals shall provide evidence as to why the decision is unfair or incorrect and must rely on specific legal grounds.
While it is possible to appeal Charity Commission decisions through the Charity Tribunal, it is also possible to submit new evidence to the Regulator directly and seek a review of its decision.
LBMW charity lawyers can advise you on the chances of a successful appeal and can assist you through the process of appealing a decision made by the Regulator.
