Recent high profile charity commission cases – lessons for the whole charity sector

In the last year the Charity Commission has, among other cases, concluded investigations into three high-profile charities: Mermaids, Fashion for Relief, and Sentebale. 

The published decisions in the case of Mermaids and Fashion for Relief followed statutory inquiries opened by the Commission using is powers under s.46 Charities Act 2011. In the case of Sentebale, the Commission opened a compliance case, stopping short of a statutory inquiry, but concluding that then trustees’ failure to resolve disputes internally had severely impacted the charity’s reputation and risked undermining public trust in charities more generally. In each case, significant governance failings were considered, with the reports offering valuable lessons for trustees, charity leaders, and professional advisers.

We briefly discuss, below, the background in each of the cases and set out some of the key lessons for the wider sector. 

Mermaids

Mermaids, which supports gender-diverse children and young people, and was established in  2015, experienced rapid growth over a relatively short period, with income rising from just over £80,000 in 2016, to over £2.25million by the end of its 2022-3 financial year. The Commission opened a compliance case in 2022 following various critical media articles and then moved to a statutory inquiry, having identified serious regulatory concerns regarding the governance and management of the charity.  

The decision report, published on 24 October 2024, concluded that there had been mismanagement in the administration of the charity by the trustees in post at the relevant times and that the charity had, in effect, failed to adapt in line with growth. The Commission found, in particular, that trustees failed to provide adequate oversight, and internal processes weren't robust enough to manage the charity’s expanding operations.

The inquiry concluded that the charity had been mismanaged over several years, although steps have since been taken to improve governance.

Fashion for Relief

Founded by former supermodel, Naomi Campbell, Fashion for Relief was established for general charitable purposes, focusing on certain areas including prevention of poverty, advancement of health and education. The charity generated income through high profile fundraising events and operated as a grant maker, via other charities.

Fashion for Relief was removed from the Charity Commission register in March 2024 following a statutory inquiry, which was opened in November 2021 following a compliance case and regulatory action plan which had addressed failings in the charity’s governance and management. 

The Commission’s decision report, published on 26 September 2024, found that only 8.5% of the charity’s expenditure had gone to charitable grants, with unauthorised payments of £290,000 made to one trustee and evidence of excessive fundraising costs. The Commission found that the trustees had failed to manage conflicts of interest and fundraising partnerships appropriately. As a result, three trustees were disqualified and over £344,000 was recovered and redirected to charitable causes.

Sentebale

Sentebale, co-founded by Prince Harry, was investigated after a damaging internal dispute and associated media attention.

In concluding its compliance case and associated press release in August 2025, the Commission found that unclear role descriptions and poor internal policies contributed to governance weaknesses. Delegation of powers to the chair wasn't properly managed, and trustees failed to resolve disputes internally. Although no formal sanctions have been issued, the Commission criticised all parties to the dispute and issued a regulatory action plan setting out steps the current trustees need to take, including to implement an internal dispute policy, improve the charity’s complaints and whistleblowing procedures, and establish clearer processes for delegating authority on behalf of the charity.  

The Commission will monitor Sentebale’s progress against the plan. 

Key lessons for the sector

These cases highlight several governance principles that all charities—regardless of size or profile—should take seriously:

• Governance must evolve with growth: As charities expand, their infrastructure, policies and resources must scale accordingly.
• Board composition and culture matter: Avoid dominance by a single trustee and ensure all trustees are active, engaged and capable of challenging decisions.
• Conflicts of interest and private benefits must be rigorously managed: Trustees must understand and comply with legal restrictions on payments and benefits, and manage all conflicts transparently.
• Fundraising must be prudent and compliant: Relationships with commercial partners must be in the charity’s best interests and subject to proper oversight.
• Disputes should be resolved internally: Public airing of internal disagreements damages reputations and undermines public trust. 
• Pay attention to Charity Commission guidance: The Essential Trustee CC3, for example, recognises that decisions don't usually have to be unanimous, but that once the trustees have made a decisions, they must all comply with it. While trustees can properly raise concerns at trustees’ meetings as part of ensuring critical and objective review of proposals - and are entitled to have their dissent registered in the minutes - if they can't or won't abide by a board decision, then ultimately, they may need to consider resignation. The Commission won't arbitrate in disputes between trustees, and charities should note that where litigation requires Commission consent, this may not always be forthcoming. 
• Trustee oversight is critical: Trustees must maintain effective oversight of operations, finances and compliance.

Conclusion

These investigations and findings serve as a powerful reminder that good governance isn't optional—it's fundamental to a charity’s ability to deliver public benefit and maintain trust. In today’s environment of heightened scrutiny, reputational damage can be swift and lasting. Trustees must be proactive in ensuring that governance arrangements are legally compliant, transparent, and resilient.

Even charities with high-profile supporters aren't immune to serious governance failures. The Commission’s findings show that stronger oversight, clearer policies, and a more engaged board could have prevented many of the issues identified.

Ultimately, trustees are custodians of charitable assets and public trust. Their role demands diligence, independence, and integrity. By learning from these investigations and applying the lessons to their own organisations, charity trustees can help ensure their charities are well-governed, sustainable, and capable of delivering lasting impact.

Useful resources

The essential trustee: what you need to know, what you need to do (CC3)

Home — charity governance code

If you have any questions, please contact Sarah Williams.