The Charity Commission

The Commission maintains a computerised register of charities and also provides the following services to charities:

Advice

The Commission publishes an extensive range of free advisory booklets, written in a straightforward style and dealing with many different charity issues. Any charity trustee may apply in writing to the commissioners for their advice on any matter affecting the performance of the trustee's duties.

Monitoring charity accounts

Charity trustees have a duty to submit to the Commission an annual report on the activities of the charity, together with a statement of accounts and the report of an auditor or independent examiner. Every registered charity must also submit an annual return to the Commission containing information about its trustees and the charity's activities. Charities that fail to comply will be approached by the Commission, and may be investigated.

Corporate charities need not submit their accounts to the Commission, since they have to submit them to the Registrar of Companies. However, the commissioners can appoint an auditor to conduct an independent investigation into the accounts of any charity.

Common investment funds

The Commission is empowered to establish common investment funds for charities whereby the participating charities pool their investments and receive returns of income and capital in proportion to the value of their contribution. This is especially convenient for charities with small investments. One of these, the Charities Official Investment Fund, is open to all charities.

Receiving information and complaints

The Commission's monitoring role is supplemented by complaints and information it receives from the public, the police, the Inland Revenue, concerned members, employees or trustees of a charity, and from the media.

Conducting enquiries

The Commissioners have the power to make enquiries of individuals and of charities and can:

• Require anyone to provide information they have which relates to any charity.
• Scrutinise and copy any documents relating to a charity.
• Require anyone to attend an enquiry and give evidence on oath.
• Require anyone to produce accounts and other documents.
• Publish a report of their findings.

Modernising charities

If a charitable purpose fails for some reason to meet modern needs, it may be possible to use the assets for similar charitable purposes. The commission has jurisdiction to authorise such modernisation schemes as may be proposed by charity trustees, and in some cases it can initiate them itself.

Sanctioning problematic transactions

Sometimes trustees wish to carry out some action in the administration of the charity which is not authorised by the terms of the trust. The Commissioners are empowered to sanction such a step if it appears to them to be 'expedient in the interests of the charity'.

Protecting charity property

Where misconduct or mismanagement of the charity is found, or it is necessary or desirable to act to protect charity property, the Commission may:

• Appoint or remove trustees.
• Deliver or transfer property.
• Suspend any trustee, officer, agent or employee of the charity pending consideration of their removal.
• Transfer charity property to an Official Custodian.
• Restrict any dealings in charity property, including freezing bank accounts.
• Appoint a receiver or manager of the charity.

Where there has been maladministration and it is also necessary to act to protect the charity's property, the Commission may remove any of the people involved with the charity and establish a scheme to administer it.

Find out more about other legal matter issues and examples in the In more depth section.