The Alternative Animal Sanctuary made headline news last week but not for the right reasons. Following an investigation, which involved the Charity Commission and the RSPCA, over the “appalling conditions” for keeping dogs, cats, horses and pigs, the Charity Commission has disqualified two trustees, including the chair and the charity has been wound up.
Charity Inquiry: The Alternative Animal Sanctuary
The inquiry found:
- The chair ran the sanctuary on a day-to-day basis and had full autonomy over the charity’s bank account, with no oversight by the other trustees.
- There was a complete lack of basic financial controls and separation between the personal finances of the chair and those of the charity, which exposed the charity’s funds to undue risk and resulted in significant losses to the charity.
- The charity failed to manage conflicts of interest appropriately and did not have a conflict of interest policy in place, despite its trustee board including three members of the same family.
- The trustees did not keep adequate financial records and repeatedly failed to comply with their legal accounting responsibilities.
Amy Spiller, the Head of Investigations at the Charity Commission, said:
“This case is a reminder that good governance is more than a bureaucratic detail. The trustees’ conduct and the chair’s clear abuse of their position at the Alternative Animal Sanctuary goes against everything we associate with charity.”
The full Charity Commission report published on 2nd September 2021 can be found here.
The importance of fully understanding your responsibilities as a trustee
Taking on the role of trustee for any charity comes with legal duties and it is vital that you understand your responsibilities, which can be summarised as:
- Acting in the charity’s best interests
- Manage your charity’s resources responsibly
- Act with reasonable care and skill
How we can help
At Nelsons, we assist many trustees and provide advice and guidance over their legal obligations and a continuous check over these small points can ensure you avoid breaching your legal duties:
- Is there a conflict of interest – as a Trustee if you or a family member are benefiting from the decision this can be a breach
- Are there financial controls – as a Trustee you should know what financial controls and checks are in place, if you are unclear, ask!
- Seek the appropriate advice – if there is a legal or financial decision to be made, have you considered gaining independent advice
Our team in Derby, Leicester and Nottingham can provide advice to charities on a wide range of legal matters. If you are concerned about your role as trustee and the legal responsibilities you have, please do not hesitate to contact Gemma Hopper, Associate in our Charities team, on 0800 024 1976 or via our online enquiry form.