Charity commission investigations might seem like a distant concern—until your organisation is suddenly under scrutiny. For many trustees, volunteers, and charity managers, the prospect of an official investigation can feel overwhelming.
But with a clear understanding of the process and the right legal support, it’s possible to navigate the situation confidently and protect both your charity’s reputation and future. If your charity is facing a regulatory inquiry, experienced solicitors can help you respond effectively and compliantly.
In this guide, we’ll explore what triggers a Charity Commission investigation, what the process looks like, and—most importantly—how to handle one with calm and clarity.
Why the Charity Commission Investigates
The Charity Commission for England and Wales has a statutory duty to ensure that charities operate in line with the law and their governing documents. When concerns arise—whether due to complaints, whistleblowing, financial anomalies, or media attention—the Commission can open a compliance case or a full statutory inquiry.
Common triggers include mismanagement of funds, safeguarding failures, trustee conflicts, or repeated failures to submit accounts and returns on time. The Commission distinguishes between minor compliance concerns and serious regulatory breaches. The latter may lead to enforcement actions, including the suspension of trustees, freezing of assets, or public reprimands.
Even something as simple as a social media complaint, if it gains traction or reveals an underlying issue, can result in scrutiny. This is why proactive governance and record-keeping are essential.
You can find detailed information on triggers and thresholds in the Charity Commission’s regulatory guidance.
Understanding the Types of Investigation
The Commission may carry out one of two main types of investigation:
A Regulatory Compliance Case usually focuses on one or two areas of concern and may be resolved with guidance, recommendations, or limited intervention. It is not a formal inquiry but still requires serious attention and cooperation.
A Statutory Inquiry is a formal investigation under Section 46 of the Charities Act 2011. These are reserved for more serious or persistent issues and may involve a detailed review of documentation, interviews with trustees, and public reporting. If misconduct or mismanagement is found, the Commission has broad powers to act, including removing trustees or taking control of assets.
Both types of investigation require full cooperation. How you respond in the early stages can influence the outcome and whether the inquiry becomes public knowledge.
Initial Steps to Take if You’re Contacted
If you receive communication from the Commission, don’t panic—but don’t delay either. Early action is essential.
First, take time to understand what is being asked. Read all correspondence thoroughly and clarify any uncertainties with legal counsel. Then, notify your board. All trustees should be aware of the situation and aligned in their response.
Next, begin preparing a full suite of documentation. This may include governing documents, minutes of meetings, financial statements, risk assessments, safeguarding policies, and correspondence related to the issues raised. Designate a single point of contact to liaise with the Commission to ensure clarity and consistency.
Most importantly, consult a solicitor experienced in charity regulation. They can guide your response, prevent unintentional missteps, and help frame your answers appropriately.
Be Honest, But Don’t Guess
One of the biggest mistakes charities make is offering incorrect or incomplete information in an attempt to ‘sound helpful’. The Commission expects candour—but also accuracy. If you don’t know the answer, it’s better to say so and offer to follow up.
Every communication becomes part of the case file. Guessing, downplaying issues, or appearing evasive can undermine your charity’s credibility. On the other hand, demonstrating a willingness to learn, improve, and correct past mistakes can positively influence the outcome.
If errors have occurred, acknowledge them and share what steps are being taken to remedy the issue. Transparency is valued, especially when combined with action.
For tips on accurate charity reporting, see the NCVO’s governance support resources.
Assess and Address Any Real Risks
Alongside preparing a formal response, assess your internal operations for gaps or vulnerabilities. If the investigation has highlighted a weakness in financial controls, safeguarding, or governance, take immediate steps to correct it. This may involve commissioning a governance review, updating policies, or implementing trustee training.
It’s also a chance to reflect honestly on culture. Is decision-making transparent? Are conflicts of interest managed properly? Are trustees actively engaged?
Making improvements during the investigation—rather than waiting until it’s over— demonstrate integrity and commitment to good governance. The Commission may view this positively when considering the next steps.
Protecting Your Reputation
One of the hardest parts of a Charity Commission investigation is managing the reputational impact. Even if your charity is cleared of wrongdoing, the public perception can linger.
To protect your reputation, it’s important to plan both internal and external communications carefully. Keep staff, volunteers, and key stakeholders informed without disclosing confidential details. Avoid posting on social media until all facts are verified, and if public statements are needed, appoint a designated spokesperson.
You should also prepare a short, factual holding statement in case the investigation becomes public. Focus on your charity’s values, your commitment to transparency, and the steps being taken to cooperate fully.
Managing reputation is about tone as well as content. Defensive or evasive messaging can do more harm than good. Aim for honesty, accountability, and reassurance.
Learning from the Process
No one wants to be investigated—but many charities come out of the process stronger and more resilient. Use the experience to reflect on your systems, governance, and internal culture. Ask what could have been done differently and how similar issues can be prevented in the future.
Review trustee skills and succession planning. If gaps in expertise were exposed, consider recruiting new trustees with financial, legal, or safeguarding experience. Update your risk register and ensure board members are familiar with it.
Above all, embed a culture of accountability. Good governance isn’t just about ticking boxes—it’s about trustees, staff, and volunteers understanding their roles and responsibilities and acting accordingly.
Final Thoughts: Preparation Is Protection
If your charity is facing an investigation, the path forward may feel uncertain. But with preparation, transparency, and the right legal advice, you can manage the process proactively.
An investigation doesn’t have to define your charity’s future. In fact, it can be a turning point—an opportunity to embed stronger practices, reinforce public trust, and ensure long-term stability.
Don’t go it alone. Work with charity law specialists, communicate openly with your board and stakeholders, and treat the investigation as a chance to reflect, improve, and rebuild.
This article is for general informational purposes only and does not constitute legal advice. If your charity is subject to a Charity Commission investigation or inquiry, seek professional legal guidance tailored to your situation.