The Charity Commission has decided against an investigation into one of Prince Charles’ charities following reports that a cash donation of £3 million was made to Prince Charles’ Foundation by a former Qatari Prime Minister.
Background
The Sunday Times reported in June 2022 that Prince Charles had been personally given £3 million ($3.05 million) in cash by ex-Qatari Prime Minister, Sheikh Hamad bin Jassim bin Jaber Al-Thani, between 2011 and 2015, with some of the money enclosed inside shopping bags. It was further reported that donations had been made as favours to receive honours and/or British Citizenship.
The Charity Commission decided to investigate after the reports were made. Prince Charles’ office said the money was handed over to one of his charities which carried out appropriate governance and made assurances that correct procedures were followed.
Clarence House has insisted the Prince had “no knowledge of the alleged offer of honours or British Citizenship on the basis of donation to his charities”.
These reports have highlighted the importance of Trustees’ roles within charities and the obligations they have to govern it appropriately and follow the correct procedures.
Responsibilities of charity trustees
In the case of charitable Trusts, trustees have overall control of a charity and are responsible for making sure they are doing what they are set up to do.
The general duties of charitable trustees are:
1. Ensure your charity is carrying out its purposes for the benefit of the intended beneficiaries of the charity – Trustees must make sure that the charity is carrying out the purposes for which it is set up.
2. Comply with the charity’s governing document and law – Trustees must make sure that the charity complies with its governing document and comply with charity law requirements and other laws that apply to the charity.
3. Act in the charity’s best interests – Trustees must act in the best interest of the charity, which includes avoiding putting themselves in a position where their duty to the charity conflicts with their personal interest or loyalty to any other person or body.
4. Manage the charity’s resources responsibly – Trustees must act responsibly, reasonably and honestly. This is sometimes called the duty of prudence – this means exercising sound judgement.
5. Act with reasonable care and skill – Trustees must use reasonable care and skill, making use of their skills and experience and taking appropriate advice when necessary.
6. Ensure charity is accountable – Trustees must comply with statutory accounting and reporting requirements.
Outcome
The Charity Commission decided “They had “no concerns” about the governance of the Prince of Wales Charitable Foundation, and that Trustees had submitted information, via a serious incident report which had given sufficient assurance that due diligence had taken place”.
However, there have now been further reports that the Prince of Wales’ Charitable Fund (PWCF) accepted a £1 million donation from the half-brothers of Osama Bin Laden, the former Al-Qaeda leader. The charity watchdog had again ruled that there is no indication that the donation was unlawful and is a “matter for the trustees”.
Comment
Trustees must uphold the responsibilities attributed to them at the point of acceptance of their role, the fundamental principles of honesty, loyalty and acting in good faith are paramount. Although the Charity Commission has ruled against further investigations into the donations and decided that Trustees have acted lawfully, public consensus has brought into question the duty of exercising “sound judgement” in accepting donations that appear highly contentious.
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