Charity faces enquiry after £15 million profit
Posted: 13th August 2013
The trustees of a charity that sold a building for £6 million face an enquiry from the Charity Commission after it was discovered that the property (sold to company registered in the British Virgin Islands) was sold for £21 million by its new owners.
The Commission is understandably concerned that the property may have been sold for significantly less than its true market value and has ordered an investigation to find out whether there has been mismanagement or misconduct on the part of the trustees.
Although this probe is at an early stage, the fact that the Commission has issued a press release to highlight that it is taking place should act as a reminder to charity trustees of their obligations in dealing with the assets they control. Such press releases are issued when the Commission considers that it is in the public interest to do so ‘and with consideration of our objective to increase public trust and confidence in charities’.