The Charity Commission has launched a class inquiry after evidence has emerged that more than 105 charities have been cashing £22m worth of cheques.

A group of 10 charities will be the initial focus of the inquiry and have been selected due to the high number of cheques and total value cashed involved.

The regulator said it expects to extend the number of charities involved in the probe over time.

The probe has been launched following a visit by HMRC to a company in Hackney, London. The cheques involved were cashed between December 2021 and March 2023.

The ten charities involved are Inspirations, Beis Aharon Charitable Trust Limited, Mifal Hachesed Vehatzedokoh, Friend of Beis Soroh Schneirer, One Heart – Lev Echod, Yad Vochessed Association Limited, Friends of Beis Chinuch Lebonos Trust, Chasdei Dov Trust, Friends of Mercaz Hatorah Belz Macnivka and The Rehabilitation Trust.

An order has been put in place to stop these ten charities issuing cheques without consent from the regulator.

“Using powers available to the Commission during an inquiry, the regulator will determine the facts around how these charities have transferred funds,” said the regulator.

“It will also investigate how trustees had oversight of what happened to funds exchanged for the cheques, and if this cash has been used properly to support what the charities were set up to do.

“The Commission will seek to establish how trustees determined that these financial transactions were in their charity’s best interests.”

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