The Commission opened a regulatory compliance case into the charity, Helping Our Future, in December 2016 following concerns about the charity’s use of clothing recycling banks.
Helping Our Future “has charitable objectives to support children in the UK, Pakistan and India”.
The Charity Commission said that complaints included “that companies connected to the charity had removed other charities’ recycling banks and had failed to obtain the relevant permission from landowners before situating their own banks. The charity took no action in response.”
Trustees
The Commission said: “When asked about these companies by the Commission, the trustees could not explain how they worked, how the amount due to the charity was calculated or what clothing had been collected.
“The trustees also did not demonstrate any oversight or control over funds being raised in the charity’s name through its clothing recycling banks.”
A statement from the Commission this morning (13 October) states: “When asked about these companies by the Commission, the trustees could not explain how they worked, how the amount due to the charity was calculated or what clothing had been collected.”
The commission added that it tried “repeatedly to engage with the trustees and resolve its concerns, over several years”.
‘Significant’
As a result of “successive failures by the trustees to address concerns and engage with the Commission”, the regulator says it has taken the “significant step” of exercising its power under section 75A of the Charities Act 2011 to issue an Official Warning to the trustees, directing them to take specific actions.
“The trustees of Helping Our Future did not demonstrate good governance or act even after significant concerns were raised”
Failure to comply with the actions set out in the Official Warning will lead to the regulator taking further action against the trustees.
Helen Earner, director of regulatory services at the Charity Commission, said: “Good governance is not a bureaucratic detail – it underpins the delivery of a charity’s purposes to the high standards expected by the public. It’s the way in which trustees can ensure they are meeting their responsibilities to their charity and its beneficiaries.
“The trustees of Helping Our Future did not demonstrate good governance or act even after significant concerns were raised with them. They have also been obstructive in response to our approaches. We expect the trustees to now act quickly to comply with the required actions and address our continued concerns.”
The Commission says it continues to have an ongoing regulatory case into Helping Our Future.
Warning
As part of the warning, issued on 6 October, the company must:
- Ensure that any literature, website, or digital platform accurately reflects the objects of the charity within 1 month of the date of the order
- Ensure that they exercise sufficient oversight of the charity’s activities and finances, including by opening a bank account, observing the bank mandate, and implementing and complying with the charity’s financial controls policy within 6 weeks of the date of the order
- Ensure that all trustee decision making is fully documented in meeting minutes
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