A serious financial investigation is now underway involving three charities that support private Jewish schools in the UK. These charities are part of a group being examined by the Charity Commission due to concerns over large amounts of money exchanged through cashed cheques.
The regulator is questioning how the charities handled millions of pounds and whether the money was used for the right purposes.
How the Investigation Started
The issue came to light after HM Revenue and Customs (HMRC) made a surprise visit to a company based in Hackney, London. There, they found that 105 different charities had cashed cheques worth £22 million between December 2021 and March 2023.
Following this, the Charity Commission launched a statutory class inquiry, which means they are officially investigating several charities at once. Ten of these charities have been selected for immediate review based on how many cheques they issued and the value involved.
Which Charities Are Involved?
Among the ten charities under investigation, three are known to support private Jewish schools. These are:
- Beis Aharon Charitable Trust Limited
- Friends of Beis Soroh Schneirer
- Friends of Beis Chinuch Lebonos Trust
These charities have been given an urgent order to stop issuing any cheques without getting permission first from the Charity Commission.
What the Regulators Are Looking For
The main concern is whether the trustees – the people responsible for managing the charities – were properly watching over how the money was being used. The Commission wants to know:
- If the money from the cheques was spent for the right reasons
- Whether the trustees followed their duty to act in the best interests of the charity
- If the financial transactions made by these charities were sensible and legal
They are also trying to figure out how so many large transactions happened without raising red flags earlier.
More Charities Could Be Investigated
The Charity Commission said this investigation might grow. As they find out more, other charities may also be added to the list, especially if any new issues or suspicious activities come up.
The regulator is clear that it will not tolerate misuse of funds, especially when charities are supposed to be helping the public or specific communities like school students.
This investigation shows how important it is for charities to manage donations and funds carefully. When large sums of money are moved without clear records or proper oversight, it raises big concerns. If trustees fail in their duties, it not only affects the trust people have in charities but also risks the future of the organisations they are supposed to support. The Charity Commission’s actions are a strong reminder that every charity must follow rules and stay transparent.
