Regulator: 4 Orthodox Jewish charities mismanaged over cheques use
The Charity Commission has concluded four Orthodox Jewish charities carried out “misconduct and/or mismanagement” in their use of blank or open cheques. Open cheques are cheques which are signed and a value is inserted, but the payee is left blank. The Charity Commission says it is usually mismanagement to use open cheques when regulated banking services are available. This is because their use is “high risk and lacks the effective oversight of charitable spending that the regulator would expect from trustees”. One of the four charities, Friends of Yeshiva Daas Sholem Shotz, has been removed from the register of charities. Charities are legally required to act for the public benefit, and are entitled to generous income tax breaks. Broader investigation The findings are part of a broader ongoing Charity Commission investigation launched last year into 105 charities which had cashed cheques with a value of £22m. Of the 105 charities, 32 have been named and most have ties to the Orthodox Jewish community. The investigation was prompted by an unannounced HMRC visit to a company …
