The Charity Commission probes SharedImpact charities over financial failures

Two separate statutory inquiries into SharedImpact and SharedImpact Foundation (UK) Limited have been initiated by the Charity Commission. The two charities were brought to the fore to improve the financial efficiency and effectiveness of charities by offering grants, financial services and advice. 

The charities with a common trustee have consistently and repeatedly failed to meet their accounting criteria. In March 2021, SharedImpact and SharedImpact Foundation (UK) Limited were placed in the Charity Commission’s double defaulter class inquiry. 

That inquiry probes charities that have defaulted twice or more in submitting required accounting information over the last 5 years.

The Charity Commission’s probe into charities’ financial practices

The charities failed to file accounts promptly for the financial years ending 31 March 2022 and 31 March 2023, so the Charity Commission intensified its engagement on 13 December 2024 by conducting two separate statutory inquiries under section 46 of the Charities Act 2011.

The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. It aims to be a fair, balanced, and independent expert regulator so charities can thrive. 

This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. As the examination of SharedImpact and SharedImpact Foundation (UK) Limited are ongoing, it is worth noting that organizations like Muslim charities face peculiar issues like banking blackouts, stressing the need for transparency and effective governance in the charity space.

Accountability: Ensuring public trust in charities

 The inquiries will probe individual charities’ administration, governance, management and the trustees’ compliance with statutory accounting and reporting responsibilities. It would investigate if the charities have appropriate and robust financial controls. 

It will also probe if the charities are being managed following their governing document, operating according to their objectives, and for the public benefit. The inquiry into SharedImpact will investigate whether the charity has sufficient trustees, and if additional regulatory issues arise, the Commission may extend the scope of the inquiries.

The outcome of the inquiry would significantly impact the charities. If they were found to be defaulting in their governance and financial obligations, they could be sanctioned or removed from the charity’s register.

The Charity Commission’s investigation of these charities heralds the necessary steps to protect the public interest and uphold the standards expected of registered charities. By so doing, charities can fulfil their roles in positively impacting lives and maintaining public trust in the charity space.