Charity Commission Criticizes Former Trustees of Keren Shmuel for Financial Mismanagement and Lack of Accountability.

The Charity Commission has recently published a report criticizing the former trustees of Keren Shmuel, a grant-making charity established in 1996 for the advancement of the Jewish religion and religious education. The statutory inquiry found that these trustees failed to fulfill their responsibilities, leading to misconduct and/or mismanagement in the charity’s administration. The report highlights a serious disregard for, and/or a lack of understanding of, the importance of proper financial controls and accountability concerning the charity’s funds.

The inquiry revealed instances of poor management, including a lack of records for the charity’s overseas expenditure and failures to file accounts on time. This neglect is seen as a repetitive failure to comply with the legal duties of trustees, which is a criminal offense under section 173 of the Act. The misconduct is further compounded by previous assurances given by the former trustees during a class inquiry in May 2017.

The Charity Commission has also issued an official warning to the current trustees, requiring them to make improvements within a specified timeframe. The charity was first investigated by the regulator in 2017 due to its failure to file annual returns and accounts on time, leading to a class inquiry. Subsequent investigations found that more than £550,000 of charitable funds were transferred overseas between 2018 and 2022, with insufficient evidence to explain how these funds were used to further the charity’s purpose.

This situation underscores the importance of accountability and governance in maintaining public trust in charitable organizations. As Micah 6:8 reminds us, acting justly and loving mercy are foundational to ethical conduct. The ongoing efforts to rectify these issues reflect a commitment to justice and transparency, aligning with the broader call for integrity in stewardship.

Source: Read the original report