Charity investigated over funding of non-charitable company
Source: gov.uk (2025-10-28)

The Charity Commission is escalating its engagement with the Islamic Human Rights Commission Trust to a statutory inquiry.

The regulator has been engaging with the charity (https://register-of-charities.charitycommission.gov.uk/en/charity-search/?p_p_id=uk_gov_ccew_onereg_charitydetails_web_portlet_CharityDetailsPortlet&p_p_lifecycle=0&p_p_state=maximized&p_p_mode=view&_uk_gov_ccew_onereg_charitydetails_web_portlet_CharityDetailsPortlet_regId=1106120&_uk_gov_ccew_onereg_charitydetails_web_portlet_CharityDetailsPortlet_subId=0) since May 2025 over concerns about its involvement in publications made and events organised by a non-charitable company which receives funding from Islamic Human Rights Commission Trust.

Complaints were also received in relation to the charity’s funding of an event where it is alleged that inflammatory statements were made. The Commission is investigating whether support of the event was in furtherance of the charity’s objects.

The Commission required the trustees to answer a range of questions to understand the charity’s involvement in these matters, and its wider relationship with the non-charitable company. After reviewing the trustees’ responses, notably in relation to the event, the regulator decided to launch a statutory inquiry to further investigate the regulatory concerns.

The inquiry will examine the trustees’ administration, management and governance of the charity and their compliance with legal duties and responsibilities. It will also review:

Islamic Human Rights Commission Trust’s activities, considering how these further the charity’s purposes and are in the charity’s best interests

The relationship between the charity and the non-charitable company, including:
- how this relationship benefits the charity and helps deliver on its purposes
- how the trustees are managing this relationship in the charity’s best interests
- what safeguards are in place to ensure the charity is adequately separate from the non-charitable company
- the steps the trustees have taken to separate the charity from the non-charitable company so that it is clear to the public that the two organisations are separate entities
The Commission may extend the scope of the inquiry if additional regulatory issues emerge. The regulator has previously issued an Official Warning to the charity on 28 March 2023 in part about how it managed its relationship with the non-charitable company. The decision to escalate its case to an inquiry reflects the seriousness of the Commission’s concerns about the impact the unclear relationship between the charity and non-charitable company may have on public trust and confidence in the charity and charities more widely.

It is the Commission’s policy, after it has concluded an inquiry, to publish a report detailing the issues examined, any action taken, and the inquiry’s outcomes.

ENDS

Notes to editors
- The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. Read further information about what the Commission does.
- On 8 October 2025 the Charity Commission opened a statutory inquiry into Islamic Human Rights Commission Trust under section 46 of the Charities Act 2011 as a result of its regulatory concerns that there is or has been misconduct and / or mismanagement in the administration of the charity.
- Allegations of criminal offences are for the Police to investigate.
- The Home Office is responsible for decisions on proscription on behalf of the UK Government.
- The Commission publishes a range of guidance for trustees, including: Conflicts of interest (https://www.gov.uk/government/publications/conflicts-of-interest-a-guide-for-charity-trustees-cc29/conflicts-of-interest-a-guide-for-charity-trustees) and on Charities and terrorism (https://www.gov.uk/government/publications/charities-and-terrorism).
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