Regulator Wraps Up Investigation into Four Charities Amid Ongoing Class Inquiry

In May 2025, the Charity Commission initiated a statutory class inquiry after discovering that 105 charities had issued cheques exchanged for cash amounting to £22 million between December 2021 and March 2023. The inquiry has seen charities enter in stages.

Investigation Findings and Charity Involvement

As of 9th September 2026, the Charity Commission has announced the conclusion of its investigation into four charities involved in this statutory class inquiry: The Z.S.V. Trust, Bnois Jerusalem Schools, Forty Limited, and Friends Of Yeshiva Daas Sholem Shotz.

The Commission identified that all four charities issued open cheques during the period in question. While the investigation confirmed that each charity was engaged in activities consistent with their stated charitable purposes, the regulator found instances of misconduct and/or mismanagement across all four entities. The use of blank or open cheques was deemed high risk and indicative of insufficient oversight of charitable expenditure, a standard the Commission expects from trustees.

Regulatory Actions and Governance Improvements

Since the commencement of the investigation, all four charities have assured the Commission that they have ceased the practice of issuing blank or open cheques. For those charities still operational, the regulator has implemented a Regulatory Action Plan aimed at rectifying governance deficiencies and enhancing internal financial controls. Additionally, trustees have received regulatory advice and guidance to bolster the management of their organisations.

Throughout the inquiry, the Commission has collaborated with other government departments to exchange pertinent information.

Trustee Changes and Charity Wind-Up

Prior to the inquiry’s initiation, Friends of Yeshiva Daas Sholem Shotz appointed a completely new board of trustees, who subsequently determined that the charity could no longer function. Following discussions with the trustees, the regulator assisted in the charity’s wind-up, resulting in its removal from the public register. The Commission also provided guidance to the trustees to ensure they understood their responsibilities should they seek to serve as trustees for other charities in the future.

Ongoing Inquiry and Future Reporting

With the conclusion of its engagement with the four charities, the Charity Commission’s statutory class inquiry continues, involving several other organisations. The regulator is diligently reviewing the evidence to consider appropriate actions or responses. It is the Commission’s standard practice to publish a report detailing the issues investigated, actions taken, and outcomes following the conclusion of an inquiry.

A comprehensive report on the inquiry concerning the four charities is accessible on gov.uk.

About the Charity Commission

The Charity Commission serves as the independent, non-ministerial government body responsible for registering and regulating charities in England and Wales. Its mission is to be a knowledgeable and impartial regulator, fostering an environment in which charities can thrive, build public trust, and fulfil their vital roles in enhancing lives and strengthening society.

For further information, please visit the Commission’s official website.

Blank cheques refer to those that are signed but have the payee and amount left unfilled, while open cheques are those that are signed with a specified amount but without a designated payee.

The statutory class inquiry was launched in May 2025; additional details regarding the inquiry’s scope can be found on the government website, highlighting serious concerns surrounding the use of £22 million that prompted the investigation by the charity regulator.

A statutory inquiry empowers the Commission to formally investigate regulatory concerns within a charity or class of charities and to utilise protective measures to safeguard a charity’s beneficiaries, assets, or reputation. The initiation of an inquiry does not imply any wrongdoing.

For press inquiries, please contact: pressenquiries@charitycommission.gov.uk. For out-of-hours media inquiries, please call: 07785 748787.