Decision

Future Vision Consortium, formerly a registered charity

Published 16 August 2019

This decision was withdrawn on 18 January 2022

This Inquiry report has been archived as it is over 2 years old.

A statement of the results of a statutory class inquiry into Future Vision Consortium (registered charity number 1152454) and Future Vision Care (Company number 07242565).

A class inquiry was opened on 14 August 2018 because the information available to the commission at that point indicated that the company was an unregistered charitable company.

The Inquiry was closed with the publication of this report.

Background and issues under investigation

Future Vision Consortium (‘the charity’) was registered with the Charity Commission (‘the Commission’) on 17 June 2013 and was governed by a Constitution adopted 10 June 2010 as amended on 15 May 2013.

The charity was removed, under section 34 of the Charities Act 2011, from the register of charities (‘the register’) on 17 June 2019 by the inquiry on the grounds that the charity did not operate.

The charity’s objects were:

‘to relieve poverty, sickness, distress and to advance education, for all public in the United Kingdom and Somalia, and in particular to provide grants, advocacy, information, advice and translation services in furtherance of these objects’.

The Commission had previously engaged with the charity. The charity was included in the double-defaulter statutory class inquiry, on 2 October 2017, because it failed to submit to the Commission accounting information (annual accounts and annual return) on time for the Financial Years Ending (‘FYE’) 1 April 2015 and FYE 31 May 2016.

The financial year end of the charity changed during the double defaulter statutory class inquiry.

During the double-defaulter statutory class inquiry, the charity submitted accounting information for the FYE 1 April 2015, FYE 31 May 2016 and FYE 31 May 2017. However this information appeared to be for a company called Future Vision Care (company number 07242565) (‘the company’).

The charity appeared to be linked to the company, which was incorporated and registered with Companies House on 4 May 2010. The company is governed by a Memorandum of Association for a charitable company and its objects are to ‘provide humanitarian aid to the Somali community’.

In addition, between 18 May 2012 and 14 August 2013 the company’s name was Future Vision Consortium Limited.

Due to the regulatory concerns relating to the charity’s failure to comply with its statutory requirements to file accounting information and the relationship between the charity and the company, the Commission opened a statutory class inquiry into the charity and the company under section 46 of the Charities Act 2011 (‘the Act’), on 14 August 2018 (‘the inquiry’).

The scope of the inquiry was to examine the following regulatory issues:

• the administration, governance and management of the charity with specific regard to the extent to which the trustees had:
  • complied with their legal obligations for the preparation and filing of the charity’s accounts and other information or returns
  • complied with their duties to wind up and request removal from the register of any charity that has ceased to operate and to apply to register as a charity any charity that is under their control if required to do so under section 30 of the Act
  • carried out activities in furtherance of the charity’s objects and ensured that the charity is operating for the public benefit
  • complied with previously issued regulatory guidance
  • properly authorised and monitored any benefits and/or remuneration to trustees and/or connected persons
• the extent to which any weaknesses in the management and administration of the charity identified by the inquiry were a result of misconduct and/or mismanagement by the trustees

Findings

According to the Commission’s records the charity had five trustees. Despite the inquiry’s repeated attempts to contact each of them by post, phone and email, the inquiry was only able to contact one of the trustees (Trustee A).

In response to an order made under section 47 of the Act by the inquiry on 7 September 2018, requesting information about the charity’s status and activities, Trustee A replied that ‘the charity is now inactive’ and does not carry out any activities. However, Trustee A also informed the inquiry that the charity attends meetings with Lambeth Council.

The inquiry contacted Lambeth Council about its connection with the charity. The Council confirmed on 10 May 2019 that it had limited contact with Trustee A but none with the charity or the company.

The inquiry met with Trustee A, on 16 April 2019, to examine the charity’s financial and other administrative documents (‘the meeting’). During the meeting Trustee A explained that the charity had moved several times and in the process lost any records it had.

With regards to the charity’s activities, Trustee A explained that in the past the charity acted in an advisory capacity for the Somali community in London. Members of the community who were in need of skills and education (such as Maths, English or Healthcare) approached the charity to be signposted to a suitable service. The charity further helped members of the community to apply for universal credit and benefits and advised on how to open a business.

This activity was carried out by volunteers only and Trustee A confirmed that the charity did not have employees. At the meeting Trustee A stated that the charity was inactive and that he wanted to wind up the charity. He confirmed that the charity had no bank account and no income or expenditure since its registration with the Commission in 2013.

The inquiry obtained bank statements for the charity’s bank account registered with the Commission under section 52 of the Act. The bank statements received from the bank show that the account was in the name of the company and appeared not to be the charity’s bank account.

In relation to the company, Trustee A stated that there was no formal relationship between the company and the charity and that the company’s accounts were uploaded to the register in an administrative error by the company’s accountant. Trustee A informed the inquiry that he had been employed by the company in the past but had no relationship with the company at present. According to Trustee A the company provides care workers to members of the Somali community in London.

After the meeting, Trustee A provided contact details of the company’s sole director (‘the director’) and the company’s accountant. The inquiry contacted the director and the accountant on 10 May 2019, asking the individuals to provide a convenient date for a meeting with the inquiry. The director did not reply to the email.

Trustee A subsequently informed the inquiry that the director no longer resides in the United Kingdom and that no date for his return could be set. The company’s accountant replied to the inquiry on 13 May 2019 stating that he was advised by the director that the company was registered with the Commission with charity registration number 1152454 (the charity number of Future Vision Consortium, the charity).

The inquiry was unable to establish if the company needs to be registered with the Commission as the director has not responded to the inquiry and no longer resides in the United Kingdom.

On 17 June 2019, the inquiry issued the company with regulatory advice and guidance, and advised the company to seek independent legal advice on its status. The inquiry also advised that if the company is a charity, and if it meets the registration criteria including an annual income of over £5,000, it must register with the Commission and abide by charity law.

The inquiry also provided advice on how to start the registration process with the Commission.

Conclusions

The inquiry concluded that the charity and the company are two different entities.

The inquiry concluded that the charity did not operate as it had no bank account and no income or expenditure. The charity also appeared not to carry out any charitable or other activities. On 17 June 2019 the inquiry removed the charity from the register under section 34 of the Act, on the grounds that it did not operate.

The inquiry was unable to determine the status of the company as the company’s sole director did not engage with the inquiry and no longer resides in the United Kingdom. The company will need to obtain independent legal advice regarding whether it has charitable status.

If the company is a charitable company, which operates for the public benefit only, carries out charitable activities and meets the income threshold it must register with the Commission and abide by charity law.

Regulatory action taken

The inquiry made an order under section 52 of the Act to the bank registered for the charity with the Commission to obtain copies of the bank statements of the account registered for the charity.

The inquiry made an order under section 47 of the Act to the trustees to request information.

The inquiry used its power under section 34 of the Act to remove the charity from the register, on 17 June 2019.

Issues for the wider sector

It is a legal requirement to tell the Commission if a registered charity ceases to exist or no longer operates. A decision to remove an institution from the register on the grounds that a charity no longer appears to be operating as a charity is not a decision reached lightly.

However, the Commission has a statutory obligation under section 34 of the Act to remove from the register any institution which it no longer considers is a charity and any charity which has ceased to exist or does not operate.

Further guidance on closing a registered charity can be found on GOV.UK.

You must apply to register your charity with the Commission if its annual income is at least £5,000 or it’s a charitable incorporated organisation (CIO) and it’s based in England or Wales.

Find out more about registering a charity.