Charity Probe Launched into Barnabas Fund Over Fund Misuse Allegations
Charity Commission Steps In
The Charity Commission for England and Wales has kicked off a statutory inquiry into Barnabas Fund, also known as Barnabas Aid. The move follows serious concerns about potential breaches of charity law and how the charity’s funds have been handled. The formal probe began on 17 September 2024, escalating from an earlier regulatory compliance case.
Questions Over Millions and Trustee Payments
Barnabas Fund reported an income exceeding £21 million and assets worth over £2.3 million in its latest accounts. But the charity faces claims of unauthorised payments to current and former trustees and related parties. There are also growing worries about the founders’ strong influence over the charity’s operations and possible unmanaged conflicts of interest. The inquiry will also examine the charity’s links to its US-based subsidiary, Nexcus, and whether this arrangement benefits Barnabas Fund.
Restrictions Placed to Protect Charity Assets
Due to the concerns about fund misuse and trustee oversight, the Charity Commission has restricted Barnabas Fund from making transactions over £4,000. This measure aims to safeguard the charity’s finances while the investigation unfolds.
Scope of the Inquiry
- Checking if the charity operates in line with its stated objectives.
- Investigating any trustee misconduct or mismanagement.
- Reviewing relationships with other organisations and potential conflicts of interest.
- Assessing if spending is properly recorded and whether the partnership with Nexcus is in Barnabas Fund’s interest.
The inquiry may widen if new regulatory issues come to light. The Charity Commission emphasises that launching an inquiry is not a finding of guilt but a necessary action to protect the charity’s interests.
A detailed report outlining the inquiry’s findings and any resulting actions will be published once the investigation concludes.
