Regulator to investigate Christian charity after almost £300k appears unaccounted for
Source: gov.uk (2025-08-06)

The Charity Commission has launched a statutory inquiry into Edmund Kell Unitarian Church and Elizabeth Kell Community Hall over financial and safeguarding concerns.

The charity, which serves the local community of Southampton, is an excepted charity (https://www.gov.uk/government/publications/excepted-charities/excepted-charities--2) meaning that it does not require registration with the Commission. As such, it is not listed on the Register of Charities.

The regulator started engaging with the charity in April 2025 after receiving an application from its trustees to change the charity’s structure. During this process, the regulator identified concerns around the charity’s governance and administration.

Following these concerns, the Commission conducted a review of the charity’s accounts and obtained information on its investment portfolio. This raised concerns that funds initially estimated as in the region of £290,000 may be unaccounted for. As a result, the regulator has now escalated its engagement to an inquiry which will seek to determine how these funds were used.

In addition, the Commission has regulatory concerns in relation to safeguarding at the charity and potentially unmanaged risks relating to a connected individual.

The inquiry will examine:

The trustees’ governance and management of the charity and the extent to which they have fulfilled their legal duties and responsibilities.

The extent to which the trustees have exercised adequate control and oversight over the charity’s financial management, including whether there has been any loss or misappropriation of the charity’s funds.

The sufficiency of the charity’s safeguarding arrangements.

The Commission may extend the scope of the inquiry if additional regulatory issues emerge.

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 (https://www.gov.uk/government/organisations/charity-commission/about) on gov.uk.

On 29 April 2025, the Charity Commission opened a statutory inquiry into the charity under section 46 of the Charities Act 2011 (“the Act”) as a result of its regulatory concerns that there is or has been misconduct and/ or mismanagement in the administration of the charity.

A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation.

Some charities are ‘excepted’ from charity registration. Apart from not having to register or make annual returns, excepted charities must comply with charity law. Their trustees have the same responsibilities as trustees of any other charity. The Charity Commission regulates them just like registered charities and can use any of its powers if it needs to. An ‘excepted’ charity is different to ‘exempt’ charities, which are exempt from registration and regulation by the Commission. More information (https://www.gov.uk/government/publications/excepted-charities/excepted-charities--2) is available on gov.uk.

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