The Charity Commission has banned trustees of The Saint George
Educational Trust after a statutory inquiry found significant
financial mismanagement.
The charity, which is based in Hampshire, was registered in 1994
to carry out activities that advance the Catholic religion and
education about the faith.
However, during the Commission's inquiry, the regulator
discovered that the charity's bank account was being used as a
conduit for money from unknown sources, and the charity was
wrongly claiming Gift Aid on these funds. Some charitable assets
were also being held as gold bullion by individuals unconnected
to the charity.
The charity's website and social media were also found to have
posted content linked to the leader of a far-right political
group, not in furtherance of its charitable purposes, as well as
an Islamist terrorist organisation.
Subsequently, the Commission removed the trustees from the
charity and has appointed Interim Managers, who will settle
outstanding debts and redistribute any remaining charitable funds
to a charity with similar charitable purposes before winding up
the organisation.
The inquiry was opened in October 2022 after the regulator
identified concerns that the charity was engaging in activities,
including online content, that did not appear to further its
religious purposes.
Findings
The inquiry has found significant governance failings, financial
mismanagement, and unacceptable political activity at the
charity, including:
-
The charity's chair had allowed the charity's bank account to
receive ‘donations' from unknown sources, which were then
transferred to entities unknown to the trustees.
-
The trustees then successfully claimed, from HMRC, Gift Aid
in the sum of £80,455.75 on those funds coming into the
charity. The charity retained 20% of the Gift Aid element
with the remainder being transferred to accounts unknown to
the trustees. These claims were later disallowed by HMRC,
and the Commission recovered the total sum of £146,166.14
(including interest and a penalty) from the charity.
-
The inquiry discovered more than £30,000 of charity assets
had been converted into gold bullion held by individuals with
no formal connection to the charity. It also found items
described as being of religious significance, such as rare
books, belonging to the charity, said to have a value in the
£10,000s, were in a storage unit that was also not in the
charity's possession.
-
The inquiry found that the trustees' actions demonstrated a
complete failure in their duty to act in the charity's best
interests. There was no evidence that they conducted any
checks on the entities transferring funds to the charity's
bank account, nor did they independently assess how the money
was spent.
-
The charity's website and social media accounts contained
content linked to far-right activities and a post likely to
be interpreted as support for Hezbollah, a proscribed
terrorist organisation.
Regulatory action
Following the opening of its inquiry, the Commission took action
to freeze over half a million pounds of the charity's funds and
ensure inappropriate content was removed from the charity's
website and social media.
With the assistance of the police, gold bullion was recovered and
sold, which enabled the Commission to make orders to the police
and bank, which held funds on behalf of the charity, and to repay
HMRC £146,166.14 for Gift Aid wrongly obtained by the charity.
In January 2025, the trustees at that time were removed from the
charity as trustees. This means that they are disqualified from
serving as trustees or holding any position with senior
management function in relation to any charity in England and
Wales.
The Commission appointed Interim Managers to take control of the
running of the charity, who secured the items held in storage,
and are working to identify the charity's liabilities in
preparation for winding up and dissolution. Any remaining funds
will be distributed to other Catholic charities.
Charity Commission Chief Executive, David Holdsworth,
said:
The generous British public can be reassured that deliberate
abuse of charity is rare and as this case shows when it does
occur, we act swiftly and robustly.
This was a flagrant abuse of charity and a betrayal of the
public's trust. The Commission's actions during this ongoing
inquiry mean that all the public money falsely claimed from HMRC
has been repaid and we have ensured that the trustees can't run a
charity again.
Charity Commission Head of Compliance Visits and
Inspections, Joshua Farbridge, said:
I have no doubt that the public will be shocked by the inquiry's
findings. The charity was used to promote inappropriate and
harmful views, express support for a proscribed terrorist
organisation, and to make improper Gift Aid claims. While what
transpired may seem more suited to fiction, this is, regrettably,
all too real.
The Commission has acted to protect the charity's remaining
assets, and the Interim Managers will work towards winding up and
dissolving it.”
The full report detailing the findings of the inquiry will be
published following the completion of the Interim Managers' work
in winding up and dissolving the charity.
