The Charity Commission has opened a statutory inquiry into the Allen Trust (charity number: 1146388 )
The Commission began engaging with the charity after its accounts for the financial year ended March 2024 showed a balance owed to the charity of over £900,000, which was a loan between the charity and a family member of a trustee.
The original loan was made in April 2018 and was due to be repaid in full (with interest) within three years. The trustees have confirmed to the Commission that the loan was extended in 2021 for an additional period of five years, with full repayment due in the coming months. It is not clear that the decision to make this loan, or extend its terms, was in the best interests of the charity.
During the course of this engagement, other serious financial concerns came to light, including evidence of other possible private trustee benefits and concerns around governance and unmanaged conflicts of interest.
The inquiry will examine the extent to which the trustees are complying with their legal duties in respect to the administration, governance and management of the charity, and in particular:
- the financial management of the charity
- whether there has been any unauthorised private benefit to the trustees and/or connected parties including whether conflicts of interest have been properly managed
- the trustees' decision making in relation to making unsecured loans
- whether the trustees have complied with their governing document
The scope of the inquiry may be extended if additional regulatory issues emerge during the Commission's investigation.
It is the Commission's policy, after it has concluded an inquiry, to publish a report detailing the issues examined, any action taken, and the inquiry's outcomes.
