The Charity Commission has opened a statutory inquiry into a charity that runs a foodbank and offers services to vulnerable adults after it reported a sharp increase in income.
Its investigation concerns potential conflicts of interest and related party transactions at Big Help Project, which runs Knowsley Foodbank in partnership with other organisations.
The Commission said it first engaged with the charity after identifying a significant increase in its reported income.
It then identified concerns around trustee decision making, potential unauthorised trustee benefit, and unmanaged conflicts of interest.
Liverpool-based Big Help Project reported that its income rose from £951,000 in the year to March 2020 to £9.49m in 2020-21 and £15.8m in 2021-22, with most of this from donations and legacies in the most recent year.
Scope of inquiry
The Commission opened its inquiry on 7 December 2023 to examine the administration, governance and management of the charity.
It will look at whether conflicts of interests and transactions with connected parties have been adequately identified and managed.
The regulator will consider whether there has been any unauthorised trustee benefit and if any misconduct and or mismanagement led to financial losses for the charity.
It will also look at whether the charity has accurately accounted for its funds and assets in line with legal requirements.
Civil Society has contacted the charity for comment.
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