The Charity Commission for England and Wales has launched a statutory inquiry into Barnabas Fund, also known as Barnabas Aid, following serious concerns over its compliance with charity law and the use of its funds. The inquiry was opened on 17 September 2024, escalating from an earlier regulatory compliance case.
The charity, which reported an income of over £21 million and assets of over £2.3 million in its latest accounts, is facing allegations of unauthorised payments to current and former trustees and related parties. Additionally, concerns have been raised over the founders’ influence on how the charity is operated and possible unmanaged conflicts of interest. The inquiry is also investigating whether the charity’s structure and relationship with its US-based subsidiary, Nexcus, is in the best interests of Barnabas Fund. Some of these issues have already been reported in the media.
Due to concerns regarding potential misuse of funds and questions around trustee oversight, the Charity Commission has exercised its powers to restrict transactions over £4,000 by the charity. This action is intended to protect the charity’s income and assets while the inquiry is ongoing.
The Commission’s investigation will focus on several areas, including whether the trustees are fulfilling their legal duties in line with charity law, managing finances effectively, and preventing unauthorised benefits to trustees and third parties. It will also assess if the charity is furthering its stated objectives and explore the influence of non-leaders on decision-making processes.
Key areas of investigation include:
- Ensuring the charity is operating in accordance with its objectives.
- Examining whether there has been any misconduct or mismanagement by the trustees in administering the charity.
- Reviewing relationships with other organisations and conflicts of interest.
- Assessing if spending is properly recorded and whether the structure involving Nexcus is beneficial to Barnabas Fund.
The scope of the inquiry may change if additional regulatory issues emerge. The Charity Commission stressed that the opening of an inquiry is not a finding of wrongdoing but a necessary step to protect the charity’s interests.
The Commission will publish a report detailing the findings, actions taken, and outcomes after the conclusion of the inquiry.
