The investigation uncovered significant issues, including the mismanagement of a £5.7 million legacy from the founder, Helga Schwarzschild, and the handling of conflicts of interest and related-party transactions. The charity, established in 2014 to support women and girls in the orthodox Jewish faith, was found to have serious governance and financial management failings.
The inquiry was initiated in 2023 after the National Crime Agency identified £250,000 of the charity’s funds in a trustee’s personal bank account. The charity’s lack of monitoring meant it failed to detect or recover these funds independently. Further checks revealed two additional grants of £250,000 each were awarded to organisations where trustees had unmanaged conflicts of interest.
Unmanaged conflicts of interest were also found between the charity and its sole shareholder companies, as well as in trustees’ businesses providing professional services. The Commission appointed Interim Managers to review the charity’s governance, who confirmed a lack of meaningful review of a £4 million portfolio of investment properties.
The inquiry concluded that the charity was exposed to a serious risk of misuse, misapplication, or loss of funds due to inadequate policies and procedures, amounting to misconduct and/or mismanagement. Trustees also failed to appropriately record decision-making, hindering the ability to evidence that decisions were in the charity’s best interests.
“"Good policies and procedures are fundamental components of effective charity governance. These, along with robust decision making, are the checks and balances that ensure a charity is well run and can demonstrate funds are being spent in its best interests."
Brian Wilson, Head of High Risk Compliance at the Charity Commission, stated that the serious gaps in governance left the foundation vulnerable. Following the initial detection of the £250,000 payment, the sum was returned, and the inquiry prompted checks on three further £250,000 grants. The Commission will continue to monitor the charity’s implementation of the action plan.
