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Wednesday, 3 October 2023

Solving internal disagreements and disputes in a charity

Different opinions and breakdowns in the day-to-day management of your charity are things your trustees need to sort out quickly. The Charity Commission will only get involved if there are no trustees and the dispute can’t be resolved internally or externally. Find out how to deal with disagreements in your charity.

If you have a disagreement in your charity – where to start

Mediation can be a way to help all sides reach an agreement

If you need to sort out a disagreement in your charity, try starting with the following:

  • check if your governing document has set out a method of dealing with disagreements and follow it
  • go to your national or umbrella body, if there is one
  • go to the National Council for Voluntary Organisations or Wales Council for Voluntary Action for advice
  • talk to a neutral person from your community, eg a clerk from a local church or a community elder
  • try mediation - a neutral third party helps all sides reach agreement

If the Charity Commission needs to get involved

The Charity Commission will only get involved in your disagreement if you show that you don’t have any trustees and all other ways of solving the dispute haven’t worked. You should write to the Charity Commission with your evidence.

The Charity Commission can take regulatory action if it sees evidence of serious misconduct or mismanagement that puts the charity’s assets, beneficiaries and reputation at significant risk.

In the most serious cases, the Charity Commission may start a formal statutory inquiry.

When the Charity Commission can’t get involved

The Charity Commission can only get involved if trustees have failed in their legal duty to look after the charity. It can’t get involved in disagreements when:

  • the trustees have acted within the law
  • another organisation is better placed to deal with the problem

The Charity Commission can’t change a decision your charity has lawfully taken just because you have a different point of view. Your trustees have the powers to decide on your charity’s policies, eg how your facilities or land will be used.

If your disagreement is with a third party, eg contracts with landlords, or employment issues, the Charity Commission will not get involved. It also does not have a role in responding to complaints about services provided by a charity or its fundraising methods.

If you want to go to court or to a tribunal

If you’ve tried all ways of resolving your dispute, you can think about going to a court, or to a tribunal. You’ll usually need to get the Charity Commission’s agreement and you’ll have to show you’ve tried mediation first. If you go to court, you’ll have to pay the costs – you can’t charge these to the charity.

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