The regulator found the trustees were responsible for misconduct and/or mismanagement but following the Commission's intervention, they have taken positive steps to address failures and weaknesses in how the charity operated.
The charity provides a place of worship, religious teachings, community services and also operates an educational centre for the benefit of the local community of Small Heath, Birmingham.
In 2019, a safeguarding incident occurred at the charity's education centre, prompting the regulator to open a compliance case. During this period, the trustees temporarily closed the education centre. The Commission found that the charity had no safeguarding policies in place at the time of the incident, constituting a serious breach of duty. As a result, it provided the trustees with detailed regulatory advice and guidance, requiring them to implement safeguarding measures before reopening the centre.
In November 2021, the regulator escalated its engagement to a statutory inquiry after carrying out a monitoring inspection which found the charity had reopened its education centre without implementing appropriate safeguarding measures. The Commission's regulatory advice had not been sufficiently followed. The charity attempted to reopen again without complying in 2022, which amounted to misconduct and/or mismanagement. In light of the continued failures, the Commission used its powers to appoint an Interim Manager to undertake a governance review.
The inquiry identified several regulatory issues, most of which were the result of a poor practice around implementing and following the charity's own governance policies. This included policies on social media use, conflicts of interest and safeguarding. Additionally, the charity failed to file its accounts for financial years ending in March 2019 and 2020 - all of which amounted to misconduct and/or mismanagement.
The charity's failure to use or complete its draft social media policy contributed to the issuing of multiple inappropriate social media posts by trustees and staff which resulted in the charity receiving negative media attention. The Commission considered this as part of its inquiry and determined the trustees' failure to have oversight or appropriately manage risks amounted to misconduct and/or mismanagement. The posts have since been deleted and an apology was issued at the time.
During the inquiry, the Commission made an Order to direct the trustees to take specified action to address these issues and to improve best practice around governance.
Following this intervention, the trustees closed the education centre again and took steps to address the concerns. They provided evidence that staff Disclosure and Barring Service (DBS) checks had been carried out, that safeguarding practices had been reviewed and implemented, and that safeguarding leads had been appointed.
The trustees have now evidenced their use and adherence to a robust social media policy, drafted in line with regulatory guidance, and the charity's accounts have since been brought up to date. Further positive steps have been taken by trustees to adopt all recommendations made by the Interim Manager and they have evidenced their use of the regulator's advice and guidance. In light of this progress, the Commission has now concluded its inquiry.
Joshua Farbridge, Head of Compliance Visits and Inspections at the Commission, said:
Our inquiry found a number of regulatory concerns and several instances of misconduct and/or mismanagement but the trustees have taken significant steps to improve how the charity operates.
We are now closing our inquiry with the expectation that the current trustees will continue to make necessary changes to help ensure this charity is providing a safe and trusted environment for all.
This case demonstrates how important it is for all trustees to agree and use their charity's internal policies. Failing to do so can leave a charity and those it serves at risk.
The inquiry report detailing the Commission's full findings can be found on gov.uk.
Notes:
- 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.
