Today (Tuesday 11th July 2023), the Charity Commission has published findings of its inquiry into The Cowesby Trust.

The charity regulator found that the sole remaining trustee, Mr Morgan-Williams, spent over £110,000 of charity funds on renovations of a cottage that he owned. While the trustee claimed the sum had been obtained through three loans from the charity, the inquiry found no evidence to demonstrate that anyone else was involved in the decision-making process or how this unsecured investment was in the best interests of the charity.

The Commission also found that the trustee spent a further £69,500 on two antique Mulberry longcase clocks which he claimed were an ‘investment’ for the charity. The clocks were however displayed in his home. Similarly, there was no evidence provided to justify the decision was in the interests of the charity.

During the inquiry, the Commission examined the charity’s accounts from 2009 to 2016 and found that during this period, the charity had not spent any of its funds to help further the charity’s objects or to the benefit of any beneficiaries.

The Cowesby Trust was established in 1963 to relieve, either generally or individually, people who live in the parish of Cowesby or any neighbouring parish who are in need, hardship or distress.

Amy Spiller, Head of Investigations at the Commission, said:

We expect all trustees to act only in the best interests of their charity and to do otherwise is a clear breach of trust. The Commission will intervene if we find charity funds are being misused, and I’m pleased that our inquiry has been able to identify the sum of the misplaced funds which have now been repaid in full.

This case is an important reminder for all trustees to take care when making decisions that affect their charity. We have a 5-minute guide on our website that is dedicated to helping trustees ensure they’re making valid decisions that are in their charity’s best interests. I’d invite anyone managing a charity to refresh their knowledge with the use of this guide.

In October 2016, the Commission directed the charity’s two banks not to part with any of the charity’s property without approval from the regulator. The Commission followed this action with the decision to suspend Mr Morgan-Williams and appoint two additional trustees in June 2017.

In August 2018, the Commission disqualified Mr Morgan-Williams from being a trustee of a charity and/or holding an office or employment with senior management functions in charities for 10 years.

In April 2020, the charity received £136,039.79 from Mr Morgan-Williams in full and final settlement of the sums he owed to the charity. The two Mulberry clocks were also subsequently sold, securing funds that could be used to support beneficiaries.

The charity now has the minimum number of trustees required by its governing document.

The full report detailing the findings of this inquiry can be found on gov.uk.