Trustees hold’em? Charity Commission blasts unsecured lending by charitable trustees – even where it might end in profit.
Trustees hold'em? This week the Charity Commission published its inquiry into the Citygate Christian Outreach Centre, a registered charity whose former trustees (including the Church's senior Pastor) lent over £940,000 to an associate without receiving paperwork, taking any security, or seeking professional advice. While the gamble may yet result in a profit for the Church, the Commission found that the trustees' conduct constituted serious misconduct and/or mismanagement in the administration of the charity. Kendya Goodman has summarised the case and its implications for charity trustees in this article, by reference to the relevant duties applicable to trustees who engage in lending and other potentially risky investment practices.