Press release: Over £2 million paid to charity rebuilt by Commission inquiry

Over £2.1 million has been recovered to a charitable trust after a Commission inquiry exposed and addressed misconduct and mismanagement in its administration.

The London based grant-making charity was established to further general charitable purposes. Despite lending £2 million the charity was not able to evidence adequate attempts to protect the charity’s assets or recover the loan. The Commission opened a statutory inquiry in May 2015 by which point the total due to the charity had risen to £2,236,401 as a result of interest accrued.

The Commission first engaged with The Reb Moishe Foundation in 2014 regarding a loan it made to a private commercial company, Gladstar Ltd, which was connected to one of the trustees. The inquiry found that poor decision-making regarding the loan had placed the charity’s funds at serious risk. The charity took no external investment advice before entering into the loan, and as Gladstar Ltd was based in Gibraltar, recovery of the funds would be challenging.

The Commission’s inquiry also identified concerns about unmanaged conflicts of interest. One of the charity’s trustees was secretary of the company at the time the loan was made, and subsequently became a Director.
As a result of the Commission’s intervention, the surviving trustee agreed to transfer the proceeds of the sale of six properties owned by Gladstar Ltd to the charity which resulted in £2,137,368.50 being vested in the bank account of the Official Custodian for Charities (the OCC).

The surviving trustee resigned from the charity and agreed not to take on any other charity trusteeships. Two new trustees were appointed by the settlor, and have opened a new bank account and adopted policies for grant making, investment and conflicts of interest. The Commission has since directed the OCC to transfer the recovered funds to the charity which, including interest, totalled £2,137,736.39. This happened on 7 October 2017.

The inquiry closed on 27 February with the publication of this report, however the Commission will continue to monitor the new trustees’ application of the new policies and charitable funds.

Harvey Grenville, Head of Investigations and Enforcement at the Charity Commission said:

Failings of governance and financial management unfortunately put this charity’s assets on the line. The good news is that, following our intervention, over £2 million can now be put towards important charitable causes.

This inquiry demonstrates that if not properly managed, conflicts of interest can seriously hamper trustees from acting in the best interests of their charity.

The Commission’s full report of its inquiry is available on GOV.UK.

Notes to editors

  1. The Charity Commission is the independent regulator of charities in England and Wales. To find out more about our work, see the about us page on GOV.UK.
  2. Search for charities on our check charity tool.

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Link: Press release: Over £2 million paid to charity rebuilt by Commission inquiry
Source: Gov Press Releases

Press release: Government launches call for evidence for Civil Society Strategy

Tracey Crouch, Minister for Sport and Civil Society, has today launched a public call for evidence on a new strategy that will harnesses the power of communities, charities, and businesses to help build a fairer society.

Tracey Crouch welcome views on Civil Society strategy

The engagement exercise for the Civil Society Strategy will look at four themes that will strengthen civil society further, exploring the best way sectors can work together, empowering people to take action on the issues that matter to them and improving the places they live and work in.

It is open for anyone to share their opinions, experiences and feedback over the next twelve weeks.

This work will build on the government’s current work with young people and youth organisations, as well as efforts to grow social impact investing, tackle loneliness and build integrated communities.

Further to the online platform, the Department for Digital, Culture, Media and Sport will also hold events around the country where people will be invited to talk about civil society.

Tracey Crouch Minister for Sport and Civil Society said:

The civil society sector is incredible and works hard to deliver so much for people and communities. I want to bring these individuals and organisations together even more to improve communities and help tackle the everyday challenges that people face. The strategy will be important in our mission to build a fairer society and help secure a better future for the next generation. I encourage everyone with an interest in this important area to come forward and make their voices heard.

The Civil Society Strategy will be developed by the Department for Digital, Culture, Media and Sport, together with the Ministry of Housing, Communities and Local Government and other government departments.

Jake Berry, Minister for the Northern Powerhouse and Local Growth, said:

This strategy reaffirms our commitment to working alongside all sections of society to build a fairer future for all. This piece of work will shape how we work with communities and will encompass their views in order to create a society that works for everyone.

ENDS

NOTES TO EDITORS

The online platform will be open for twelve weeks.

It is split into four sections: Our Civil Society, People, Partnerships and Places. You can choose to just answer the questions that are relevant to you:

  1. Our civil society: is about the big questions of what civil society is, how it is working well and what needs to change to strengthen it further
  2. People: explores how more people could take action on issues that matter to them
  3. Partnership: explores the best ways to work across different sectors to make a better society
  4. Places: explores how we empower local people to improve the places they live and work

Link: Press release: Government launches call for evidence for Civil Society Strategy
Source: Gov Press Releases

Press release: Planting the seeds for a flood resilient future

A Sunderland school is more prepared for flooding after a rain garden planter was installed and the school’s pupils created a flood plan as part of the Environment Agency’s ‘Flood Weeks’.

Community Engagement Officer Taryn Al-Mashgari helped the youngsters at Springwell Village Primary School develop a flood plan and ‘grab bag’ so they are prepared in the event of a flood.

And partners at Northumbrian Water installed a rain planter – which captures and stores rainfall from the school’s roof – as part of its Rainwise initiative.

Youngsters at the school helped put flowers into the planter in an event on Friday 23 February and then ‘tagged’ the school with a flood warden logo designed by a pupil from Hetton Lyons Primary School.

This was done using Rainworks – an invisible spray which will only show the logo when it rains. It will remind pupils during key times to be aware of their flood resilience learning.

Initiative helps schools be prepared for flooding

A workshop held by the Environment Agency, Northumbrian Water and Northern Powergrid then also took place for parents and local councillors to see what the children have been leaning and to see them demonstrate their newly-created flood plan.

It’s part of an Environment Agency initiative to help schools across the North East be better prepared for flooding. Taryn works with children in all year groups to help them understand different types of flooding and how it happens.

They learn what to do before and during a flood, and what the flood warning symbols used by the Environment Agency mean. Taryn said:

It’s important that younger people understand what flooding is, how it happens and what the different organisations that deal with flooding do.

We also teach them how to prepare for and what to do during a flood in a series of interactive sessions where they design their own flood protection and describe how they would keep their favourite possessions safe.

It’s absolutely devastating to be flooded and that’s why we are working with schools and our partners to educate our future generations about what they can do to keep themselves and their valuables safe.

Image shows youngsters at the school putting flowers in the new rain planter

Spreading the word about managing rainfall

Northumbrian Water’s Rainwise initiative aims to spread the word about how managing rainfall better can help increase capacity in the sewer network and encourages residents to make small changes around their homes and gardens.

Rain garden planters help reduce the risk of flooding by reducing the amount of water directly entering the sewer network, as well as slowing the amount of water that does.

Northumbrian Water’s Project Manager, Chris Bond, said:

The Environment Agency’s flood week gave us a real opportunity to work with the school to raise awareness of our Rainwise initiative and how it’s important for families to manage rainfall better around their home to help reduce flood risk.

The planter captures rainwater from the roof of the school, which is then absorbed by the soil and plants and helps to take some of the pressure off our sewer network. It’s been great working with the children to put in these plants, which builds their knowledge of flooding and creating new natural habitats.

For more information on Rainwise, visit Northumbrian Water’s website

The Environment Agency is urging people to ‘Prepare, Act, Survive’ by visiting the Floods Destroy website and do three things to prepare for flooding.

  • check your postcode and find out if you are at risk of flooding
  • sign-up for free flood warnings if you are at risk
  • view and save the 3-point flood plan so you know how to ‘Prepare, Act, Survive’ in a flood


Link: Press release: Planting the seeds for a flood resilient future
Source: Gov Press Releases

The Occupational Pension Schemes (Preservation of Benefit and Charges and Governance) (Amendment) Regulations 2018

These Regulations amend the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991 (S.I.1991/167) (“the Preservation Regulations”) and the Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I.2015/879) (“the Charges and Governance Regulations”).

Link: The Occupational Pension Schemes (Preservation of Benefit and Charges and Governance) (Amendment) Regulations 2018
Source: Legislation .gov.uk

The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2018

These Regulations contain provisions about debts arising for employers under section 75 of the Pensions Act 1995 (c.26) in respect of occupational pension schemes and also contain consequential amendments. In particular, the Regulations introduce a new option for employers managing section 75 debt, namely the ‘deferred debt arrangement’ which permits employers in specified circumstances to defer payment of the section 75 debt provided certain conditions are met.

Link: The Occupational Pension Schemes (Employer Debt and Miscellaneous Amendments) Regulations 2018
Source: Legislation .gov.uk