More than £320,000 was granted to a charity under investigation for reportedly mishandling its funds. We Care Foundation, which supported the resettlement of refugees in Bristol, has been subject to an inquiry by the Charity Commission since January 25.
The Charity Commission froze its bank accounts in April after they were concerned about the trustees' decision-making and payments from the charity to its trustees and their related companies. According to the Charity Commission's website, the organisation has received £325,000 in government grants since 2019.
This included hundreds of thousands of pounds from the Home Office via Bristol City Council for furnishing 30 homes for refugees in its House2Home scheme. Bristol City Council was approached for comment but did not respond in time for publication.
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The We Care Foundation received £14,000 in the financial year ending April 2019 and was granted £59,500 in the next financial year. Its income from the council was reduced to £4,700 for its rehousing during the Covid-19 pandemic, but this rose to £131,010 in 2022 and fell slightly to £115,790 in 2023.
In its financial reports, We Care Foundation explained the funding helped the charity furnish homes for the resettlement programme by purchasing furniture from charity shops or donations. It states: “The project is grant funded the project allows costs for tradesmen, storage, and a small cost for staff.
“Our staff and volunteers within this project offer their services at a concession allowing them to support the charity with their time and services. This allows us to provide the family with an outstanding home that is a safe sanctuary and delivery below budget.”
In its 2023 report, trustees commented they “demonstrated financial prudence, allowing us to operate under budget” on its House2Home project.
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A spokesperson for the regulator said the charity engaged with the Charity Commission in June 2022, and a statutory inquiry was opened after "concerns were identified in its governance and financial management". They observed "substantial payments" had been made from the charity to its trustees and companies for which they are directors.
These payments were not disclosed in the charity’s accounts and have not been adequately explained to the Commission. The Charity Commission spokesperson said: "There was a period when the charity had only two trustees, who were married at the time, and their decision-making should have been limited to appointing the required number of trustees. However, the Commission is concerned that significant decisions about the charity’s finances and management were made at this time.
"As a result of these concerns, the Commission has now frozen the bank accounts of the charity to safeguard its funds." The regulator's inquiry will examine whether the trustees are complying with their legal duties, and if there were any failings or weaknesses in administration of the charity due to any misconduct or mismanagement.
It will also look at communication between the charity’s trustee board and the Commission, including whether true and accurate information was disclosed at all times. Any unauthorised connected-party payments and trustee personal benefits will also be explored, including an examination of the charity’s contractual arrangements with third parties.
The regulator may extend the scope of the inquiry if additional regulatory issues emerge. After the inquiry's conclusion, a report will be published and outline any actions taken.
We Care Foundation confirmed it is working with the Charity Commission. A spokesperson added they were no longer registered in Stoke Gifford but now based in Coventry.
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We Care Foundation shared the following statement: "We Care Foundation is addressing recent inquiries from the commission with transparency and dedication. Despite only becoming aware of the inquiry on March 14, 2024, the charity has actively engaged with the commission, welcoming guidance, support, and an action plan, regrettably, no such assistance has been offered.
"The trustees are fully committed to working with the commission to resolve matters swiftly. We have provided substantial evidence to support the investigation, demonstrating our commitment.
"We are fully cooperating with the commission and are dedicated to resolving this matter as quickly as possible. Our priority remains serving our community and fulfilling our mission with integrity.
"We Care remains committed to transparency and accountability in all its operations and looks forward to a swift resolution of the inquiry with the commission's support."
