A charity that spent just £124 in a year to meet its aims of supporting people in poverty and impacted by natural disasters in Pakistan, has been removed from the register.

Instead, most of its money was being spent on renovating investment properties it owned, a Charity Commission investigation has found.

The regulator found that Resham Helping Hand spent only 5.5%, or £124, of its £2,460 expenditure in the year ending April 2018 in support of its work to support communities in Pakistan.

Its low income and spending, of below £5,000 between 2013 and 2018, had sparked concerns from the regulator.

However, its income picked up markedly by the year ending 2020 to £150,000, but this was due to the sale of two of the charity’s properties it had invested in.

It emerged that “the vast majority” of its spending went on renovating the five investment properties owned by the charity.

Among concerns by the regulator was a lack of evidence on how the charity’s funds were being spent on its mission to support communities in Pakistan. The Commission also raised concerns around the charity’s governance structures and policies.

Accounting failures

The regulator’s inquiry found that “the charity was not properly managed”, including “failing to keep adequate accounting records to explain how the charity’s funds were being spent.

This included the transfer of £1,500 to Pakistan in 2017, which was a third of its income spending that year. While the charity said it was being used to “reinstating utilities at an orphanage” the trustees “provided minimal evidence to sufficiently explain” this.

On another occasion, in June 2018, a cheque for £460 was made out to one of the trustees to pay a builder in cash for work at one of the charity’s properties.

“However, after receiving the funds the builder did not complete the work nor return the funds to the charity. The inquiry found that the trustees had not carried out due diligence in respect of the builder, nor did they make any records in relation to the payment. When asked by the inquiry for the builder’s details, the trustees were unable to provide this information.”

An interim manager was appointed and in 2021 the Commission informed the trustees that the charity should be wound up and dissolved, however no representations from them were received.

In May this year the charity was formally wound up, removed from the charities register.

The Commission has directed its liquidated assets of over £270,000 to an unconnected charity with similar charitable objects.

“Trustees must ensure that their charity has adequate financial controls in place,” said the Commission.

“It is important that the financial activities of charities are properly recorded, and their financial governance is transparent. Charities are accountable to their donors, beneficiaries and the public.

“Donors to charity are entitled to have confidence that their money is going to legitimate causes and reaches the places that it is intended to, this is key to ensuring public trust and confidence in charities.”

Share Story: