A charity linked to the National Union of Students has admitted that the antisemitism scandal at the NUS could affect its future finances.
A highly critical investigation into allegations of antisemitism at the NUS, published in January, found that “for at least a decade, Jewish students have not felt welcome or included in NUS spaces or elected roles”.
NUS Students’ Union Charitable Services, a wholly owned subsidiary of the NUS, said its trustees may need to “revisit” the way the organisations work together if individual student unions quit the NUS over the scandal.
The charity’s accounts for the year to the end of June 2022, published overnight with Companies House, say any effect on finances would not be seen until after December 2023, and that in the meantime its board would “constructively engage” with any individual considering leaving the NUS.
A spokesperson told Third Sector the Charity Commission had now closed its compliance case into the NUS Charity because complaints related only to the NUS and not its charitable arm.
The antisemitism investigation recommended that charity trustees discussed reforming its governance relationship with the NUS, including stripping the NUS chair of their role managing the charity’s boss.
The accounts said trustees had discussed the investigation report and “resolved that, if the recommendations are adhered to, the relationship with NUS UK does not pose a risk to the charity”.
The charity also said it would help members of the NUS “implement the recommendations [of the report] in their own local context”.
But it continued: “A risk arising in the wake of the investigation was that of the continued affiliation of members to NUS UK and the charity.
“Each year, members have the right to hold a referendum with their respective student bodies in regards to the continuing affiliation. There is a risk that if NUS UK becomes financially strained then the shared service provision between the organisation[s] would need to be revisited.
“If any members disaffiliate they will continue as members until December 2023, meaning cash flows are secured until that point.
“The board continuously reviews the status of all members’ continued affiliations and will always seek to constructively engage with any member seeking to hold an affiliation referendum.”
The report said: “Scrutiny from regulators, following an erroneous complaint to the Charity Commission, has resulted in correspondence, but no formal regulatory investigation has been initiated.”
Total income at the NUS charity was £3.5m in 2021/22, up about 20 per cent compared with 2020/21, the accounts show.
Its spending also rose, from £2.6m to £3.5m.
A spokesperson for the NUS Charity said its trustees “drew attention to the risk that the charity might lose members due to the brand association with NUS UK. To date no member has left the NUS Charity because of the antisemitism claims.
“The NUS Charity also provides paid-for shared services such as finance, IT and HR to NUS UK. If NUS UK became financially strained, then the resource paid to the charity might be at risk.”
They added: “The [Charity] Commission contacted the NUS Charity in April of last year, following concerns raised, specifically in relation to the election of a new president of the NUS UK. The commission was also aware of media reporting in respect of this matter, as well as wider concerns that had been raised regarding NUS UK and the charity.
“Having engaged with the NUS Charity on this matter, the commission acknowledged that the allegations as set out in the press, as per the trustees’ assurances, appeared to relate to NUS UK and not to the NUS Charity. The compliance case was closed on that basis.”