STORY
Concerns about charitable status being abused for private benefit rose by 29% in 2025 to 2026, according to the Charity Commission. The regulator recorded 374 such cases, following a 38% increase in the previous year. Its latest sector risk assessment says charities are facing increasingly complex activity by people seeking to exploit organisations and regulatory gaps.
The Commission said it formally passed information to other agencies including HM Revenue and Customs, police forces and local authorities 500 times during the last year, an increase of 8%. It also highlighted concerns about charities providing sensitive services in areas without specialist service regulation, including some out of school settings and certain housing services, where users may have limited routes for redress over service quality.
The assessment also points to continued financial pressure across parts of the sector and new risks associated with technology. Two in five charities spent more than their income and one in four charities with income below £10,000 reported only breaking even in 2024. The regulator said artificial intelligence can also facilitate fraudulent applications to register charities or obtain grants. Forty five per cent of charity registration applications are now approved, compared with 72% in 2016 to 2017.