The Charity Commission is reporting a significant increase in disputes between trustees, as "financial pressures" and "wider societal tensions" take their toll on board level harmony.

During 2024/25 the Commission saw an increase in cases involving a dispute within a charity, from 579 to 909, an increase of 57%, according to its latest Charity Sector Risk Assessment report.

“From our engagement with the sector, we understand that this increase may be partly due to difficult decisions that charities are having to take in response to financial pressures, as well as wider societal tensions resulting in challenging circumstances facing charities,” states the report.

Its report adds that “some charities are operating in an environment where a section of the public is actively hostile to their work and in consequence are responding in some instances to unacceptable circumstances and risks”.

Such risks can “have a significant impact on a charity’s workforce and beneficiaries” with some charities having to pay for “costly security measures or office relocations” due to “hostility, intimidation and abuse”.

Board election disputes

Further factors mentioned in trustee disputes include disagreements around board elections, financial transparency, and land or property decisions.

Another concern flagged in the regulator’s report is that charities are facing “continued challenges in recruiting sufficient numbers of trustees”. The Commission warns this “could impact trustee boards’ ability to provide effective governance”.

The regulator also notes though that during 2024/5 there was a “clear reduction”, by around a third, of cases related to trustee decision making concerns or breaches of the Commission’s guidance. Over the last year 313 cases with these issues were opened, compared to 458 the previous year.

The Commission’s Charity Sector Risk Assessment report, also warns of an increase in criminals using artificial intelligence technology to attempt to set up fraudulent charities.

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