Regulator removes 19 charities from register amid double defaulters investigation

The Charity Commission has removed 19 charities from the register and issued official warnings to two others during its inquiry into ‘double defaulters’, who have failed to submit annual accounts for two or more years out of the last five.

For the period of the inquiry, from April 2020 to March 2021, 19 charities have been removed from the register after being found to have ceased to exist or no longer operating.

This includes East Dulwich Community Nursery Association, Enfield Mental Health Users’ Group and Happy Hearts Fund Great Britain.

In addition, two late filing charities, Compass Bridge Ltd as well as Islamic Education Centre and Mosque, have been issued with official warnings, which require trustees to comply with legal obligations around their accounts.

“The Commission will consider taking further regulatory action if they fail to comply,” added the regulator.

Compass Bridge
’s last accounts filed with the regulator are for the financial year ending 31 August 2017.

The last accounts filed by Islamic Education Centre and Mosque are for the financial year ending 31 March 2017.

Two other charities had been issued with a notice of the regulator’s intention to issue an official warning but have now filed their late documents.

Meanwhile, 25 charities involved in the inquiry submitted their outstanding annual documents and can continue to operate as charities. This has resulted in more than £8m of charitable income being accounted for, said the regulator.

Those that have submitted their outstanding accounts and can continue operating include Cats in Crisis, Children Care Centre and Forest Row Community Association.

“Failure to submit the annual documents to the Commission may be a criminal offence,” warned the regulator.

It added: “The Commission also regards it as mismanagement and/or misconduct in the administration of the charity.

“Providing timely, accurate and informative financial information that will help funders, donors, beneficiaries and others to understand the charity and its work, will encourage trust and confidence in it.”

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