Policy paper

Where we appoint interim managers

Published 23 May 2013

Applies to England and Wales

The Charity Commission has the power to appoint an interim manager to act in the administration of a charity. It can use this power only after opening a statutory inquiry under section 46 of the Charities Act 2011 if it considers that there has been misconduct or mismanagement in the administration of a charity or if it is necessary or desirable to protect the charity’s property.

1. How the commission appoints interim managers

The commission usually appoints an interim manager to manage a charity to the exclusion of the existing trustees. The charity usually pays the interim manager’s fees as in the case of receiver or liquidator appointments by the court. The appointment of an interim manager is only ever a temporary and protective step. The commission therefore appoints an interim manager only after very careful consideration of other possible solutions to the problems the charity in question faces.

The commission aims to appoint interim managers with the right skills and experience at a cost that will provide the charity with value for money. The commission maintains an approved list of providers from which appointments are usually made. When the commission needs to appoint an interim manager, it will invite selected providers from the list to tender for the appointment.

Although the commission can make interim manager appointments with the agreement of the charity trustees, most are taken forward without their consent, because the trustees are either unwilling or unable to put matters right themselves.

2. Information about individual appointments

Details of individual appointments are provided in the statement of results of the inquiry which (unless there are exceptional circumstances) is published after the conclusion of each inquiry.

View the inquiry reports

The register of charities also shows when the commission has appointed an interim manager to a charity. This shows:

• their name and contact details
• additional information about their function
• whether the appointment is to the exclusion of the existing trustees, or whether the existing trustees retain some responsibilities and duties

Each year the commission publishes a summary list of all the interim manager appointments which have closed in the previous financial year and the appointments which remain in place. See below for details.

2.1 Impact of an interim manager’s work

The impact of each appointment includes a ‘protections’ figure, calculated to indicate the amount of charitable funds safeguarded or recovered as a result. These protections are subject to close scrutiny and are included only if there is no doubt about the interim manager’s role in protecting these funds. Some of the interim manager’s work will not necessarily result in financial protections, but there will be other benefits and positive impacts. These may include:

• identifying irregularities and inefficiencies and putting these right
• ensuring that a charity’s vulnerable beneficiaries are protected from harm
• instances of helping introduce significant improvements in a charity’s governance
• strengthening the charity’s financial management and financial controls
• protecting a charity’s reputation and/or the reputation of the sector
• protecting the public from unlawful / unregulated fundraising

2.2 Interim manager data for 2013/2014

As at 1 April 2014, seven interim managers are in place.

Charity

Relief for Distressed Children and Young People

Nottinghamshire Miners Home

Delapage Ltd

Kingsway International Christian Centre

The Dove Trust

The Cup Trust

Afghan Heroes