Charity Regulator Launches Investigation into Charities Operating in Controversial Israeli Settlements

The Charity Commission has initiated a statutory class inquiry to investigate allegations regarding numerous charities operating within illegal Israeli settlements in Palestine. This inquiry aims to ascertain the extent to which charitable funds are utilised in these settlements, the intended purposes of such expenditures, and whether they align with the objectives of the respective charities.

The inquiry will allow the Commission to evaluate whether the assets of these charities or their beneficiaries are jeopardised and to determine what regulatory measures, if any, may be necessary to address these concerns. Initially, the investigation will focus on eight charities that have been highlighted in recent complaints received by the Commission.

Focus on Fact-Finding

By launching a class inquiry, the Commission can delve deeper into the regulatory issues at hand without presuming any wrongdoing at this stage. The eight charities selected for initial scrutiny have been prioritised based on an assessment of the concerns raised, taking into account various risk factors such as the location of their partners and the recency of the alleged activities. The identities of these charities are not being disclosed publicly at this time.

Upon completion of the inquiry or its various stages, the Commission plans to release a report detailing the issues investigated, its findings, and any regulatory actions proposed. The possibility of naming the charities will be considered when this report is published.

Potential Expansion of Inquiry

The Charity Commission intends to widen the scope of its investigation to include additional charities that may be using charitable funds to support, directly or indirectly, activities or projects situated within illegal Israeli settlements in Palestine. This expansion will depend on the findings of the ongoing inquiry.

Information regarding the inquiry’s scope has been shared with the police and HM Revenue and Customs (HMRC) to ensure a comprehensive approach to the issues raised.

Commitment to Charitable Purposes

Stephen Roake, Assistant Director of High Risk Compliance at the Charity Commission, emphasised the importance of accountability among charities. “All charities must be able to demonstrate that they are delivering on their charitable purposes, wherever in the world they operate and whatever they do,” he stated. Roake acknowledged the serious nature of the allegations against UK charities in illegal Israeli settlements and reiterated the Commission’s commitment to establishing the facts before determining any necessary regulatory actions.

The inquiry’s findings will also inform the development of regulatory guidance for charities, aimed at bolstering public trust and confidence in the charitable sector.

Legal Framework of the Inquiry

The Charity Commission’s statutory inquiry is a legal mechanism that empowers the organisation to formally investigate regulatory concerns. It can implement protective measures to safeguard the charity, its beneficiaries, assets, and reputation. Section 46 of the Charities Act 2011 grants the Commission the authority to initiate inquiries related to charities or specific classes of charities for various purposes.

The primary focus of this class inquiry is to ascertain the extent to which funds and resources have been allocated by charities in relation to illegal Israeli settlements, the purposes of these allocations, and whether they comply with charity law. This will involve a thorough examination of the financial activities within the settlements to determine their alignment with the stated charitable objectives.

It is important to note that the Commission does not have the authority to investigate criminal offences or breaches of the Geneva Convention; such matters fall within the jurisdiction of the police. Instead, the Commission’s role as a regulator centres on overseeing the governance and management practices of trustees to ensure that all charity activities serve the public benefit.

Under section 56 of the Charities Act, the Commission can disclose relevant information to pertinent public authorities in connection with its functions. Specific concerns raised have already been communicated to the police and HMRC under this provision. The Commission also provides a range of guidance to assist charities in their establishment and operations, including decision-making processes.