Regulator shuts military charity over fundraising concerns

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The Charity Commission has signalled its intention to wind up Support the Heroes, following the conclusions of its investigation into complaints relating to the veterans charity’s fundraising activities

In November 2016 the regulator opened a statutory inquiry and appointed Brian Johnson, an insolvency expert from HW Fisher & Company as interim manager to take over the running of the charity.

In its public notice stating its reasons to seek a winding up order, the Commission said it is satisfied that there is or has been misconduct and/or mismanagement in the administration of the charity; and/or that it is necessary or desirable to act for the purpose of protecting the property of the charity, or securing a proper application for the purposes of the charity of that property or of property coming to the charity.

The Commission also said it is satisfied that the charity does not operate, or that its purposes can be promoted more effectively if it ceases to operate. Under the rules, the Commission is inviting representations to be made in relation to its intention to make the winding up order.  These must be made within 30 days.

The Commission may (without further public notice) issue the winding up order (with or without modifications) on 16 October 2018, 60 days after the publication of its notice of intent.

The charity was set up in February 2014, with the objectives to support those serving or who have served in the Armed Forces with a focus on treatment of post-traumatic stress disorder and makes grants to other charities. It declared income of £119,473 for the financial year ended 31 March 2016, up from £72,474 the previous year.

Following a BBC Scotland investigation, the Commission announced it had serious concerns about an agreement Support the Heroes signed with a commercial fundraising company. It was particularly concerned about the transparency of the charity’s fundraising arrangements and the ability of the public to make an informed decision about donating to the charity.

The concerns resulted in the Commission ordering the trustees not to part with any of the charity’s property on 11 November 2016, as well as ordering them to stop all fundraising while it conducted further investigations. The regulator also froze the charity’s and subsidiary’s bank accounts.

Representations can be emailed to [email protected] marking it ‘Representations to the Public Notice - Support the Heroes, registered number 1155853’.

Charity Commission’s Public Notice of Intention to Exercise Powers is here

Report by Pat Sweet

 

Pat Sweet | Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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