The trustees of an Orthodox charity have been issued with an official warning by the Charity Commission after it found evidence of “poor financial management and governance”.
The regulator opened an inquiry into Salford-based Chesed Leyisruel Trust in 2017 after it failed to submit accounts on time for a third successive year.
Trustees failed to ensure they could effectively manage conflicts of interest, to hold meetings according to the charity’s governing document and to obtain professional advice when making investment decisions, the commission said.
The trust had taken two-interest free loans to buy properties for investment, “despite the fact that the charity did not have an investment policy”, the inquiry found. The trustees had only obtained “informal advice” about the loans.
