The Mahfouz Foundation was registered in 2012 with aims to advance the education of the public in the UK in the history, literature, language, institutions and culture of the Middle East.
The Commission began examining concerns about the charity in September 2021, following media reports alleging it had received funds that donors had intended for a different charity. The Commission's engagement escalated to a statutory inquiry in November 2021.
Today's report finds the charity's trustees were responsible for misconduct and / or mismanagement and were issued with an official warning. The conduct of a former trustee, Michael Wynne-Parker, makes him unfit to serve as a charity trustee and he has been disqualified from serving as a trustee or in a senior management position in any charity for a period of 12 years.
Matters under investigation
The inquiry examined if a series of payments received by the charity from donors were used in accordance with their intentions.
The inquiry also examined the trustees' overall management and administration of the charity and whether they discharged their legal duties and responsibilities.
Findings of the inquiry
The investigation found the trustees had allowed The Mahfouz Foundation's bank account to be primarily used as a conduit to transfer funds on behalf of third parties.
On examining the charity's financial records, the Commission found that the majority of transactions were for third parties, and those that were made out of the charity's own funds did not further its charitable purposes.
This included deposits into the charity's bank accounts that the donors believed were being made directly to the King's Foundation (a charity registered in Scotland).
Among other findings, the inquiry identified that £193,730 of the donations intended for the King's Foundation were transferred from the charity's bank account to Mr Wynne-Parker's private company's bank account. This transaction was authorised by the charity's trustees.
Regulatory action
As a result of the Commission's interventions:
- on 29 January 2024 Mr Wynne-Parker was disqualified from serving as a trustee or holding a senior management position in any charity for a period of 12 years
- the regulator oversaw the return of the £106,270 to the donor, this being what remained in the charity's bank account from the original deposits the donor had made
- the inquiry secured the repayment of £49,581 by the trustees to make good losses the charity had incurred as a result of misapplied funds. These funds can now be applied to a charity with similar purposes
- on 5 October 2023 the Commission issued the trustees of The Mahfouz Foundation with an Official Warning under section 75A(1)(a) of the Act
- The Mahfouz Foundation was removed from the charity register on 6 October 2023 as it no longer operated
Angela Ascroft, Critical Case Lead at the Charity Commission, said:
The trustees' actions in this case demonstrated scant regard for the charity's purposes, instead allowing the charity to be misused as a conduit for funds that were misapplied and misused.
All trustees of a charity are jointly responsible for ensuring its funds and bank account are used only to achieve its purposes.
Our work in this inquiry demonstrates that we will not hesitate to take strong action where trustees fail in these essential duties. The inquiry's full findings are available to read in the published inquiry report.
