Investigation will examine whether funds are being used to further charitable purposes
The Charity Commission has launched a fact-finding statutory class inquiry that will investigate concerns about multiple charities working in illegal Israeli settlements in Palestine.
The investigation will seek to establish the extent of the use of charitable funds in illegal Israeli settlements, the purpose of that spending, and, if so, whether this was in furtherance of the charities' purposes.
It will also enable the Commission to assess whether charity assets or beneficiaries are at risk, and what regulatory action, if any, is required to resolve the concerns.
The inquiry is focused on fact-finding and will initially involve 8 charities that are amongst those which were identified in concerns recently raised with the Commission.
Opening a class inquiry enables the Commission to examine regulatory concerns in greater detail and is not a finding of wrongdoing.
The 8 charities initially under inquiry have been prioritised following an assessment of the concerns received against a range of risk factors such as the location of charity partners and how recently alleged activity occurred. The charities are not being publicly named at this time.
The Commission intends to publish a report detailing the issues examined, its findings, and regulatory actions once the class inquiry, or stages of the class inquiry, have concluded. The Commission will consider naming the charities when it publishes its report.
The Commission plans to extend the number of charities under investigation over time to other charities that appear to expend charitable funds to support, directly or indirectly, activities and/or projects within illegal Israeli settlements in Palestine.
The Commission has shared information about the scope of its inquiry with the police and HMRC.
Stephen Roake, Assistant Director, High Risk Compliance at the Charity Commission said:
All charities must be able to demonstrate that they are delivering on their charitable purposes, wherever in the world they operate and whatever they do.
Serious allegations have been made about UK charities operating in illegal Israeli settlements in Palestine, so our first step is to establish the facts. Only then can we determine if regulatory action is required, based on our findings and the evidence we see.
Our fact-finding will also help us develop regulatory guidance for charities, which will to help ensure public trust and confidence in charities.
The scope of the inquiry may be extended if additional regulatory issues emerge during the Commission's investigation.
