Another day, another report of a charity making unauthorised payments to a trustee.
Whilst the Commission has only just opened a statutory inquiry, I wonder whether we will see the issue of a second official warning in this case.
The first official warning issued by the Charity Commission is discussed in one of my earlier blogs (see: http://www.brabners.com/blogs/charities/official-warnings) and in subsequent updates and unauthorised trustee payments was a factor in the Commission's decision to make use of the new powers it was granted in the Charities Act 2016.
If your charity makes payments to any of your trustees, now might be a sensible time to consider whether the necessary constitutional or other authority is in place.
The Commission said that it identified the charity for a compliance visit because of its “work in high-risk areas” and became concerned that trustees did not have records of “a significant amount of overseas expenditure in Iraq between 2013 and 2017”. It also said that the charity has “applied funds that fall outside of its objects” and that “a number of payments had been made to one of the charity’s trustees without explanation”.