Charity regulator opens inquiry into charities working in illegal Israeli settlements

The Charity Commission has launched a fact-finding statutory class inquiry that will investigate concerns about multiple charities working in illegal Israeli settlements in Palestine.

The investigation will seek to establish the extent of the use of charitable funds in illegal Israeli settlements, the purpose of that spending, and, if so, whether this was in furtherance of the charities’ purposes.

It will also enable the Commission to assess whether charity assets or beneficiaries are at risk, and what regulatory action, if any, is required to resolve the concerns.

The inquiry is focused on fact-finding and will initially involve 8 charities that are amongst those which were identified in concerns recently raised with the Commission.

Opening a class inquiry enables the Commission to examine regulatory concerns in greater detail and is not a finding of wrongdoing.

The 8 charities initially under inquiry have been prioritised following an assessment of the concerns received against a range of risk factors such as the location of charity partners and how recently alleged activity occurred. The charities are not being publicly named at this time.

The Commission intends to publish a report detailing the issues examined, its findings, and regulatory actions once the class inquiry, or stages of the class inquiry, have concluded. The Commission will consider naming the charities when it publishes its report.

The Commission plans to extend the number of charities under investigation over time to other charities that appear to expend charitable funds to support, directly or indirectly, activities and/or projects within illegal Israeli settlements in Palestine.

The Commission has shared information about the scope of its inquiry with the police and HMRC.

Stephen Roake, Assistant Director, High Risk Compliance at the Charity Commission said:

All charities must be able to demonstrate that they are delivering on their charitable purposes, wherever in the world they operate and whatever they do.

Serious allegations have been made about UK charities operating in illegal Israeli settlements in Palestine, so our first step is to establish the facts. Only then can we determine if regulatory action is required, based on our findings and the evidence we see.

Our fact-finding will also help us develop regulatory guidance for charities, which will to help ensure public trust and confidence in charities.

The scope of the inquiry may be extended if additional regulatory issues emerge during the Commission’s investigation.

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Notes to editors:

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1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. The Commission has a wide range of regulatory powers which it can use to support charities and protect charitable assets. Further information about the Charity Commission and its work is available at  The Charity Commission - GOV.UK.

2. The Foreign, Commonwealth and Development Office is responsible for foreign policy and the implementation of international obligations in UK law.

3. A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern and to use protective powers to protect the charity and its beneficiaries, assets, or reputation. Section 46 of the Charities Act 2011 (‘the Act’) grants the Commission powers to, “from time to time, institute inquiries with regard to charities or a particular charity or class of charities, either generally or for particular purposes.”

4. The scope of this class inquiry is as follows: to establish the extent to which funds or other resources have been applied by charities within the defined class in relation to illegal Israeli settlements in Palestine, the purposes for which those funds were used, and the extent to which this meets the requirements of charity law. This will include examining what funds were applied within an illegal settlement and whether the application of those funds was in furtherance of the charities’ stated charitable purposes. The scope of the class inquiry may be expanded if necessary.

5. The Commission does not have a remit to investigate crimes or breaches of the Geneva Convention – any criminal matters are for the police to investigate. Our focus as regulator is on trustees’ governance and management of their charities, including their work to ensure all the charity’s work delivers on its purposes, for the public benefit.

6. Under section 56 of the Act, the Commission may disclose information to a relevant public authority in connection with the exercise of the Commission’s functions or the functions of that authority. The Commission has disclosed specific concerns it has already received to the police and HMRC under that provision.
7. The Commission produces a series of  guidance to help set up and run a charity, including on making decisions.