Regulator probes organisations linked to charity that owes £1.5m to HMRC

Charity
Regulator probes organisations linked to charity that owes £1.5m to HMRC

The Charity Commission has opened statutory inquiries into two charities linked to a Northampton-based care charity in administration.

The regulator is investigating The Shoosmith Gallery, which promotes the work of the Shoosmith family, over unauthorised payments made to a trustee.

An inquiry has also been opened into the education charity Steiner Friends, which provides courses based on the ethos of the philosopher Rudolf Steiner, over its management of potential conflicts of interest.

Both charities share trustees with the care charity William Blake House, which is subject to an inquiry by the regulator around financial mismanagement because it owes £1.5m to HM Revenue and Customs.

William Blake House entered administration last month after a High Court application was submitted by its interim manager.

The commission said it had identified further concerns related to the Northampton-based Shoosmith Gallery and Steiner Friends during the course of its inquiry into WBH.

The commission’s review of the gallery’s accounts has raised concerns that a trustee has received payment for their role,” the regulator said.

“This was despite the charity’s governing document expressly prohibiting the employment of a trustee without the prior written consent of the commission, which was neither sought nor given. 

“The commission’s inquiry will seek to establish the basis on which the trustees considered employment of a trustee to be in the charity’s best interests.”

The Shoosmith Gallery inquiry will investigate whether its trustees had complied with the charity’s governing document, including the potential employment of a trustee without the commission’s consent.

Steiner Friends reported no income in its accounts for the years to the end of March 2022, 2023, 2024 and 2025, and the regulator said its income appeared to be below the threshold for submitting accounts to the commission.

“However, following a review of the charity’s bank accounts, the commission is concerned that the charity’s income may have exceeded the threshold and therefore accounts should have been submitted to the commission,” the regulator said.

“This raises concerns that the trustees have failed to comply with their reporting obligations.”

The Steiner Friends inquiry will examine trustees’ compliance with their statutory accounting and reporting responsibilities and the accuracy of its submitted accounts.

It will also look into the financial management of the charity, including whether funds have been properly applied.

Both inquiries will cover the charities’ management of potential conflicts of interests, connected party transactions, potential unauthorised private benefits to trustees and/or connected parties, and whether the organisations are operating in furtherance of their charitable objects.

The Shoosmith Gallery, Steiner Friends and William Blake House have been contacted for comment.

Originally Posted Here

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