Concerns over charities’ links to the Russian regime since the invasion of Ukraine is a factor in a 47% increase in new investigations being opened by the Charity Commission this year.

Another reason for the spike is an increase in probes into double defaulting charities that consistently file late accounts with the regulator for two or more of the last five years, said the Commission.

According to the Commission’s annual report 72 new probes were launched in 2022/23, up on 49 new inquiries the previous year.

“A significant factor in the increase in the number of inquiries opened is the number of double defaulting charities, said the regulator.

“This is in addition to an increase in inquiries being opened in response to charities linked to individuals sanctioned in respect of the Russia (Sanctions) Regulation.”

Following the government’s policy of “hitting” Russian premier Vladimir Putin’s “inner circle”, the Commission has launched six statutory inquiries into charities affected by sanctions on those with links to the Russian regime.

“In doing so, we have sought to protect almost £100m in charitable funds and have appointed interim managers to five of the charities under inquiry,” said the regulator.

Probes have included a statutory inquiry launched in July 2022 into grantmaker the Potanin Foundation, which is run by Russia’s second richest man Vladimir Potanin.

Meanwhile in June last year the regulator appointed interim managers to run two grant making trusts linked to Russian oligarch Dr Viatcheslav Kantor.

Also last year an interim manager was appointed to run Genesis Philanthropy Group, after three of its trustees became subject to financial sanctions by the government relating to Russia’s invasion of Ukraine.

A statutory inquiry was opened into the Jewish arts and heritage charity after oligarchs Petr Aven, Mikhail Fridman and German Khan were named as ‘designated persons’ by the government in relation to Russia.

Elsewhere, double defaulter probes last year include a statutory inquiry opened in February this year into the Middlesbrough Central Masjid and Community Centre, after repeated failures by the charity to provide the regulator with its financial accounts.

We’ve published our Annual Report for 2022-23 📄

Read about our work over the past year: https://t.co/2f7obkmTLe pic.twitter.com/X8LYI6LrxD

— Charity Commission (@ChtyCommission) July 10, 2023

Last year the Commission concluded 5,726 regulatory cases, up on 5,324 the previous year.

Of those ending last year 68 were statutory inquiries, the regulator's most serious investigation. The previous year 45 of these probes were concluded.

During 2022/23 the regulator assessed 2,969 serious incident reports, down on 3,451 the previous year. This is the third year in a row there has been a fall in new serious incident reports.

In reference to the cost of living impacting the charity sector Charity Commission chief executive Helen Stephenson said she is “mindful of the importance of continuing to regulate robustly during times of financial strain, ensuring donors and the public give to charity, and funders continue to make grants to and contract with charities, confident that that any wrongdoing will be identified and addressed”.

Whistleblower reports increase

Meanwhile, whistleblowing reports about charities have risen by 16%, according to latest Charity Commission figures.

The regulator has revealed it received 327 reports in 2022/23, compared to 281 the previous year.

This follows a 35% decline in whistleblowing reports from 2020/21 when there were 431 reports.

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