Increasing number of ‘bad actors’ exploiting charitable status for private benefit, regulator warns
The Charity Commission’s second annual Charity Sector Risk Assessment reported a “sustained upward trend” in the number of cases relating to charitable status being abused for private benefit in recent years.
It found a 38 per cent increase in such cases (from 211 to 291) in 2024-2025, and a further 29 per cent increase in 2025-26 (374 cases).
The regulator warned that new technologies, including the use of AI in charity registration applications, increased the risk of bad actors “exploiting the system and seeking to use charities as a vehicle for private benefit”.
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Race equality charity assigns independent investigators to examine staff concerns amid restructure
The Runnymede Trust has appointed the business management consultancy Campbell Tickell, after staff raised leadership, governance and financial concerns during a recent restructure.
A source close to the charity, who wished to remain anonymous, told Third Sector that a recent restructure, which the Runnymede Trust had attributed to financial concerns, had resulted in five redundancies, out of a total workforce of 19.
During the restructure staff raised concerns in an anonymous letter, seen by Third Sector, which called for an independent financial and legal review, as well as an independent leadership and governance review.
Responding to the concerns in another letter, also seen by Third Sector, Runnymede Trust chair Donna Kinnair announced an independent investigation, and said Campbell Tickell was expected to report back by the end of August.
A spokesperson for the charity said: “As part of our ongoing commitment to good governance, we appointed independent investigators to review matters raised by some staff during the restructure. We do not want to pre-empt the outcome of that investigation.”
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Charity set up to provide air ambulance announces closure amid ongoing investigation
Stoke Air Ambulance has commenced an orderly winding-up process after its trustees had “carefully reviewed” its position over an extended period.
This involved considering challenges arising from regulatory intervention and the “significant practical, operational and financial difficulties” involved in progressing plans for a viable operational air ambulance charity, the organisation’s trustees said.
The charitable incorporated organisation was registered in 2015 with the aim of purchasing and operating an air ambulance service but had not yet acquired a helicopter.
The Charity Commission opened a statutory inquiry into the organisation earlier this year after a separate investigation by the Fundraising Regulator found it created the false impression that it operated a functional air ambulance service, unfairly criticised other charities and encouraged donors to cancel existing gifts to other organisations.
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