The Charity Commission has launched an investigation into an arts and education charity amid concerns around its long-term financial viability.

The regulator has been involved with the charity since last year around its plans to sell its central London base, as well as wider concerns around its finances and management.

Over this time the charity has provided “several revised drafts of a business plan” but “this has failed to reassure the regulator of the charity’s ‘long-term financial viability and has therefore raised concerns about significant risks to the charity’s funds’.

Most recent charity register records for the Seven Dials Playhouse show its spending of £1.18m for the financial year ending September 2023 was more than double its income of £430,850. This is the third year since 2019 where its spending has outstripped its income.

In announcing that its investigation has been advanced to a statutory inquiry the Commission said it will “use its full suite of regulatory powers” to investigate the charity.

Being looked at are whether trustees have complied with their legal duties in respect of the administration, governance and management of the charity.

Also being looked at are the charity’s financial management, including the trustees’ plans for its future financial sustainability, and whether there has been misconduct and/or mismanagement.

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