The Charity Commission has told the True and Fair Foundation to change its governance structure following several complaints about the charity. 

The True and Fair Foundation last December published a report claiming that some large charities did not spend enough on the cause.

The foundation a small grant maker run by husband and wife hedge fund managers Alan and Gina Miller, secured coverage on the front page of the Daily Telegraph, even though the newspaper and the charity had been warned that the report contained inaccuracies.

Commission: report 'flawed'

The report was condemed by NCVO, Acevo and several other infrastructure bodies. The Charity Commission described it as "flawed". Most of the charities named issued statements disputing the way their details had been represented.

The Telegraph published a clarification to the story in the paper and amended the online version after complaints to the press regulator IPSO.

In March the True and Fair Foundation published a second report, this time criticising inefficiencies at some charity shop chains. It was again widely criticised by sector bodies.

A number of complaints about the first report were made to the Charity Commission, which opened an operational compliance case.

In a statement the Commission said that it has “engaged with the charity and issued formal regulatory advice to the trustees on required changes to current governance arrangements”. 

The regulator will “follow up at a later date to ensure these changes are implemented”. 

At the moment the charity has two trustees, the Millers.

In a statement Gina Miller said: “The main issue was whether or not there is a conflict of interest for a husband and wife to act as trustees, even when the charity is a grant making charity.  We were informed that the case file was closed on the 5 August.

“If this guidance were to be upheld and applied to all grant making trusts, foundations and charities where would that leave family foundations – when several family members are trustees?  For example the Gates Foundation has trustees who are also co-chairs – they are Bill, Melinda and William Gates Snr.”

The Gates Foundation is based in America. It has a London office but is not registered in the UK.

Latest accounts filed

The True and Fair Foundation’s accounts, for the year ending September 2015, show that the charity had an income of almost £145,000 and expenditure of £135,000. 

Its accounts show that it did not receive any gift aid, compared to £22,500 the previous year. 

When asked why this was Gina Miller told Civil Society that: “There are often timing issues with HMRC paying gift aid.”

HMRC does not comment on individual cases.

Charity Commission to change its beta search tool

Part of the True and Fair Foundation’s research for its first report was based on figures highlighted by the Charity Commission’s beta search tool. 

Charity Finance editor, Gareth Jones, called on the Commission to make changes to how it displays information to protect public trust. 

The Commission has now said: “Following our review of these matters, we will be making changes to our beta search facility. There were also wider lessons about the importance of how charities submit information in their annual report and return to take forward.”