The Charity Commission has opened two statutory inquiries after other agencies warned the Commission that the charities were being investigated over “fraudulent state benefit claims”.
International development charity, Families for Survival UK, and elderly care charity Save the Age Ltd, are both suspected of “serious regulatory concerns”, including allegations of payments to trustees and volunteers, the Charity Commission said.
A spokesman for the regulator told Civil Society News the charities are linked through an "individual who is a current trustee of one of the charities and a recent former trustee of the other”.
“At the time of opening the inquiry the individual was acting as a trustee of both charities,” the spokesman said.
In a statement this morning, the regulator said information provided to the Commission by other agencies led to it opening inquiries, it said: "The Commission was informed by other agencies that they were investigating concerns that both charities were being used as a vehicle for fraudulent state benefit claims."
It added that this had cast doubt on the “true identity” of each of the charity’s trustees as well as the “validity of the charities’ financial statements”.
The regulator said it will examine the financial management of both charities and whether trustees had directly or indirectly benefitted from charity assets.
It will also look at whether both charities were operated for the public benefit, whether any misconduct took place and whether trustees carried out administrative duties in line with charity law.
The inquiry into Families for Survival UK was opened on 9 November 2015. The Ilford-based charity's income is £316,533, according to its latest set of accounts. An investigation of the smaller London-based charity, Save the Age Ltd, was opened on 11 December 2015, the regulator said. The charity's current income stands at £18,608, according to it's latest financial report.
This morning a spokesman for Families for Survival told Civil Society News it would challenge the allegations made against it.
“Allegations raised against the charity by the Charity Commission are not true and the trustees will challenge this,” the spokesman said. "The Charity Commission visited us in 2014 and found no irregularities."
Save the Age also confirmed this morning it would “challenge these allegations to prove that this is not true”.
The Commission said it had already been monitoring Families for Survival UK’s fundraising practices and financial administration and has provided regulatory advice and guidance to the trustees since February 2014.
"This monitoring was linked to serious regulatory concerns about the charity’s financial administration and use of its funds, including payments made to trustees and volunteers," the statement said.
