A charity in Scotland is being investigated after concerns were raised about its property being rented to a pub for non-charitable purposes.
Scotland’s charity regulator OSCR is investigating West Wemyss Community Trust Limited with concerns that it is only undertaking limited activities that provide public benefit to further its charitable purposes.
There is an agreement between the Fife-based charity and a group, which operates a pub on its premises.
The pub rental serves as an income stream for the charity but the regulator is investigating concerns that activity on the site does not further its charitable purposes.
‘Assets must be used for charitable purposes’
OSCR’s interim inquiry report states: “A charity’s assets must be used to further its charitable purposes.
“Its assets should not be used to meet the expenditure of a third party, where this would not further its charitable purposes.”
The charity’s purposes are the advancement of citizenship, community development and/or environmental protection or improvement.
As it is an ongoing inquiry, the charity must not undertake any activities for six months in order to ensure that the charity’s assets are protected.
The regulator also requires anyone who is acting on behalf of the charity not to make payment for any spending on behalf of the pub group.
Much of the charity’s ongoing issues seem to stem from the disagreement on the operation of the pub between the charity trustees and third parties, the inquiry states.
It states that the charity trustees are seeking professional support and advice to help them deal with the charity’s affairs.
Civil Society could not reach the charity for a comment.
New regulations for Scottish charities
Meanwhile, OSCR has reminded Scottish charities that from this summer, they must provide the regulator with the details of their trustees including their name, home address, email address, telephone number and date of birth.
The information will be kept securely and only the first and last names of trustees will be published on the Scottish charity register from the end of 2025.
OSCR states that this will enhance transparency and public trust, allowing donors, funders and the public to see who is responsible for governing each charity.
Trustees can apply for their name not to be published, but only where this might put safety or security in jeopardy, it states.
Starting at the end of 2025, charity accounts will begin to be publicly available on the Scottish charity register.
The effort is part of OSCR's updates from the Charities (Regulation and Administration) (Scotland) Act 2023, which strengthens oversight and public trust in the sector.
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