Policy paper

Charity Commission power to appoint an Interim Manager for a charity

Updated 27 April 2023

Applies to England and Wales

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This publication is available at https://www.gov.uk/government/publications/how-the-charity-commission-appoints-interim-managers/charity-commission-power-to-appoint-an-interim-manager-for-a-charity

The purpose of an Interim Manager appointment

The Commission can appoint an IM to manage the property and affairs of a charity to the exclusion of its existing trustees [footnote 1]. An IM can also be appointed to work alongside a charity’s trustees for specific purposes. The appointment of an IM is an interim and protective action. The charity usually pays the IM’s fees, however in some limited circumstances we may indemnify an appointment.

We appoint an IM after careful consideration of alternative solutions to the problems and/or risks faced by the charity in question and where we are satisfied that the appointment is proportionate in the circumstances. Before making an IM appointment we take a risk-based and proportionate approach, balancing the cost and impact of the IM appointment on the charity against the potential risks if the appointment were not made. An IM appointment is usually appropriate where:

  • we have concerns about a charity’s ability to operate, and/ or
  • where the trustees are unable or incapable of acting, and
  • where there is significant risk to a charity’s:
    • assets
    • income
    • services
    • beneficiaries, volunteers and/or employees
    • reputation

and/or to public trust and confidence in charity generally.

We aim to appoint IMs with the right skills and experience, and at a cost that will provide the charity with value for money. We maintain a list of approved practitioners from which appointments are usually made. When we need to appoint an IM, we will then generally invite a small number from this list to tender for the appointment.

The positive impacts of an IM appointment may include:

  • bringing independent and expert skills to a charity facing difficult circumstances
  • financial - protecting a charity’s property, including its funds and income
  • identifying irregularities and inefficiencies and putting these right (where, and if possible)
  • ensuring that a charity’s beneficiaries or others who come into contact with a charity through its work are protected from harm
  • introducing significant improvements in a charity’s governance
  • strengthening a charity’s financial management and controls
  • protecting a charity’s reputation and/or the reputation of the wider sector (including protecting the public from unlawful/unregulated fundraising)

  1. The trustees or any other person who is, or who may be affected by the Commission’s Order to appoint an Interim Manager can appeal to the First-tier Tribunal (Charity) within specified timeframes. ↩

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