Investigation Underway as Dispute Threatens to Halt Operations of Disability Charity

ADAPT (North East) has been established with the aim of enhancing the quality of life for individuals with sensory, physical, and learning disabilities, in addition to those facing mental health challenges, alongside their families and carers. This charity, located in the North East of England, offers a variety of services such as community transport, social prescribing, and wheelchair hire.

Regulatory Scrutiny and Concerns

In July 2026, the Charity Commission commenced an assessment in response to financial and governance issues raised regarding the charity. Among the allegations were claims of substantial payments being made without the necessary approval from the trustee board.

By September, the Commission had opened a regulatory compliance case to further investigate the concerns relating to potential misconduct and/or mismanagement within the organisation.

Throughout its engagement, the Commission became aware of an internal dispute within the charity, which was hindering its operational capabilities and impairing the trustees’ collective engagement with the regulator’s inquiries.

Impact of Internal Disputes

The regulator has expressed concerns about the ramifications of this ongoing internal dispute, particularly regarding the disruption it may cause to the charity’s beneficiaries and staff. Consequently, the Commission has escalated its intervention to a statutory inquiry to delve deeper into the issues at hand.

Objectives of the Inquiry

This inquiry will assess the extent to which both current and former trustees have adhered to their legal obligations concerning the administration, governance, and management of the charity. Key areas of focus will include:

• The composition of the board of trustees and their capability to manage the charity in alignment with its governing document.
• The decision-making processes of the trustees, specifically any instances of unauthorised personal benefits or potential conflicts of interest.
• The financial management practices of the charity, including the adequacy of financial controls in place.
• The current impact on the charity’s beneficiaries.

The scope of the inquiry may be expanded if additional regulatory concerns arise during the investigation.

Transparency and Reporting

Upon the conclusion of the inquiry, the Commission will publish a report that outlines the issues examined, actions taken, and the outcomes of the inquiry.

The Charity Commission is an independent governmental department responsible for the registration and regulation of charities in England and Wales. Its goal is to act as a fair and balanced regulator, thereby fostering an environment in which charities can thrive and build public trust, ultimately fulfilling their vital roles in enhancing lives and strengthening society.

Legal Framework for Statutory Inquiries

On 16 October 2026, the Charity Commission initiated a statutory inquiry into ADAPT (North East) under section 46 of the Charities Act 2011, prompted by regulatory concerns regarding the potential risks to charity property, its beneficiaries, and public trust in the sector.

A statutory inquiry empowers the Commission to formally investigate regulatory concerns within a charity and employ protective measures to benefit the charity, its beneficiaries, assets, or reputation.

Furthermore, the Commission provides guidance to charities on the implications of an inquiry. It is important to note that the Commission does not function as a mediation service and can only intervene in trustee disputes under specific circumstances, such as when prior resolution attempts have failed or when the dispute poses a risk to the charity, its beneficiaries, or public trust.

For further assistance and information, please refer to the Commission’s guidance on disputes within charities.