UK Jewish Charity Investigated in Questionable Loans to Insiders

Raleigh LTD, an Orthodox charity, did not follow proper procedures in making loans totaling more than half a million pounds to a subsidiary company and a private company owned by two of its trustees, a Charity Commission* investigation has found.

Between 2009 and 2013 the charity received £924,151 but only spent £172,333 on grants to further its charitable objectives.

Raleigh came to the commission’s attention during an Inquiry into the charity Delapage Limited, whose prime activity is to “advance religion in accordance with the Orthodox Jewish faith.” That Inquiry remains ongoing.

In August 2011, the commission opened a compliance case into Raleigh – whose objectives include “advancing the Orthodox faith and religious education” – after becoming concerned about its “exceptionally low” level of charitable activity, an accumulation of funds that appeared contrary to its reserve policy and its relationship with its subsidiary company, Rally Investments. Two months later, the regulator escalated the case to a statutory inquiry.

The report says the charity will be placed in “monitoring” and the commission might consider revisiting in nine to 12 months to see what progress it has made.

*The Charity Commission registers and regulates charities in England and Wales.