The Charity Commission has launched an investigation into the financial management and potential conflicts of interest at the Knightland Foundation, which makes grants to help tackle poverty.

The Foundation has been in talks with the regulator for the last five years after concerns were raised around its accounts, including “insufficiently documented loan agreements and transactions to connected companies,” said the Charity Commission.

An action plan was issued by the Charity Commission to the charity’s trustees to address these issues.

But following continued monitoring and due to “unresolved concerns”, this has been escalated to a statutory inquiry.

In addition, interim managers have been appointed to address concerns at the charity, says the regulator.

It added: “The inquiry will examine whether potential conflicts of interest and connected party transactions have been properly managed and whether there has been any unauthorised trustee benefit.

“It will also look at wider concerns around the charity’s financial and resource management and the trustees’ compliance with their legal obligations.”

Financial data on the charity register for the year ending 31 January 2020 shows that the Foundation had a total income of £739,714 and spending of £736,179.

The bulk of its funding comes from investments, donations and legacies.
It has four trustees and no employees with total benefits over £60,000, according to the register.

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