New Charity Commission Guidance on the recovery of charity property lost through breach of trust

The Charity Commission has published its policy on the restitution and the recovery of charitable funds misappropriated or lost to charity in breach of trust. The new policy reminds trustees that “trustees will be held accountable for deliberate or reckless behaviour amounting to misconduct and occasioning serious losses to their charity”. In that situation, they will be responsible for recovering losses and may seek advice from the Charity Commission. If trustees do not or cannot act, the Commission reserves the right to take appropriate action, which may include giving advice or working with the police as well as opening a statutory inquiry leading to regulatory action and seeking recovery from the trustees, personally.

IBB Solicitors’ specialist Charities team has a wealth of experience in delivering practical commercial advice to charities and not-for-profit organisations and those who work with them. For advice, contact a member of the charities team on 01895 207809 or charities@ibblaw.co.uk.