Earlier this year, the Charity Commission for England and Wales
announced a statutory class inquiry into a group of charities
where there is evidence that they have issued cheques which were
then exchanged for cash.
Following an unannounced visit by HMRC to a company in Hackney,
105 charities were found to have cashed cheques with it to a
value of £22 million between December 2021 and March 2023.
In May 2025 the Commission announced the inquiry
and the details of first 10 charities entered into it.
The Commission has now extended this inquiry to include the
following 10 charities:
Using powers available to the Commission during an inquiry, the
regulator will determine the facts around how these charities
have transferred funds. It will also investigate how trustees had
oversight of what happened to funds exchanged for the cheques,
and if this cash has been used properly to support what the
charities were set up to do. The Commission will seek to
establish how trustees determined that these financial
transactions were in their charity's best interests.
The regulator has issued an immediate order to temporarily stop
any of the charities under inquiry from issuing cheques without
its prior consent.
The scope of the inquiry may also be extended if additional
regulatory issues emerge during the Commission's investigation.
Notes to editors:
- The Charity Commission is the independent, non-ministerial
government department that registers and regulates charities in
England and Wales. Its ambition is to be an expert regulator that
is fair, balanced, and independent so that charity can thrive.
This ambition will help to create and sustain an environment
where charities further build public trust and ultimately fulfil
their essential role in enhancing lives and strengthening
society. Find out more: About us - The Charity
Commission - GOV.UK
- A statutory inquiry is a legal power enabling the Commission
to formally investigate matters of regulatory concern within a
charity, or class of charities and to use protective powers for
the benefit of the charity and its beneficiaries, assets, or
reputation. An inquiry will investigate and establish the facts
of the case so that the Commission can determine the extent of
any misconduct and/or mismanagement; the extent of the risk to
the charity, its work, property, beneficiaries, employees or
volunteers; and decide what action is needed to resolve the
concerns.
- The Commission published a press release on
gov.uk to announce the first tranche of charities which entered
the class inquiry.
- The latest charities entered the inquiry in July and August
2025.
