Unveiling the Severity of the Governance Crisis: The Keren Chochmas Shloma Inquiry
The Charity Commission has launched a full statutory inquiry into the Keren Chochmas Shloma Trust, a significant grant-making organisation, in a move that sends a powerful signal to the entire UK charity sector. The core of this story is not simply the regulator’s concerns over financial management, but the critical reason for its escalation: the trustees’ alleged “failure to meaningfully engage” and to comply with legally binding orders. This case forcefully underlines that ignoring the regulator is not a passive oversight but an act of misconduct in its own right. The investigation lands amidst a deeply troubling trend, with new data revealing that whistleblowing reports concerning governance failures have doubled in the last two years, framing this inquiry as a potent and timely case study of a much larger challenge facing trustees and regulators alike.
A Deep-Dive into the Investigation
To appreciate the gravity of this regulatory escalation, it is crucial to understand the specific failings that prompted the Charity Commission to act so decisively. The Keren Chochmas Shloma Trust, a charity registered in 2013 to advance the orthodox Jewish faith through grants, is now under the microscope. In a press release on 12 November 2025, the Charity Commission announced it had opened a statutory inquiry into the charity on 9 October, following what it described as “multiple attempts” to engage with trustees.
The regulator’s stated concerns include potential unauthorised trustee benefit and expenditure outside the charity’s objects. However, the most visible sign of deeper issues is a sustained breakdown in basic financial oversight. The accounting failure is not a minor lapse; with accounts for the financial years ending 31 December 2022, 2023, and 2024 all outstanding—the earliest now over 700 days late—it points to a severe collapse in governance for a charity whose last filed figures for 2021 showed an income of £1.89m. The charity has not responded to requests for comment.
This persistent non-compliance is what triggered the Commission’s most serious investigative power. A statutory inquiry, conducted under section 46 of the Charities Act 2011, grants the regulator enhanced legal powers to investigate and use protective measures. The Commission’s move is underpinned by a critical, and often overlooked, point of law: ignoring a regulator’s legally binding order is not merely an administrative oversight; it is defined within the Charities Act as misconduct in its own right. This legal definition provided the Commission with the clear justification to escalate its investigation from a compliance case to its most serious formal inquiry. This stark regulatory action pivots from the specifics of one charity’s failings to reflect the mounting pressures and documented weaknesses in governance across the wider sector.
Context and Sector-Wide Implications
To fully grasp the importance of the Commission’s actions, they must be viewed against the backdrop of a significant and measured increase in governance-related concerns being reported across the entire voluntary sector. The evidence for this sector-wide challenge is clear: according to the Charity Commission’s own data, whistleblowing reports concerning governance failures have doubled in just two years, rising from 152 in 2023-24 to 303 in 2024-25. This disturbing trend confirms that governance issues have been the most reported concern over the last decade, indicating a persistent and growing problem.
Sector leaders have voiced their alarm at these figures. Liz Lowther, CEO of the Association of Chairs, expressed concern that governance failures are not only “topping the list” of whistleblowing reports but are also “growing year on year,” underscoring the “growing need for better support for trustees and chairs.” This rise in reports may also reflect a sector that is “not immune from… toxic work cultures,” as a spokesperson for the whistleblowing charity Protect noted, adding that people working in charities are often “more likely to call out wrongdoing” because they are motivated by ethical concerns.
The investigation into the Keren Chochmas Shloma Trust is therefore a real-world manifestation of these statistics. It serves as a high-profile example of the ultimate consequences when governance, transparency, and the fundamental duty of regulatory compliance break down completely.
A Sobering Reminder for All Trustees
The statutory inquiry into the Keren Chochmas Shloma Trust is a story of more than just one charity’s alleged failings; it is a powerful narrative about the fundamental responsibilities of trusteeship. A major grant-maker now finds itself under the regulator’s microscope, not simply for potential financial mismanagement, but for a fundamental breakdown in its duty to communicate and comply. This is occurring at a moment when sector-wide data shows governance is a critical and growing concern for charities of all sizes. The outcome of this inquiry, which the Commission will detail in a published report, will be scrutinised by the sector for signals about the regulator’s tolerance for non-compliance. Ultimately, this case serves as a crucial and sobering reminder to all charity boards: their non-negotiable legal duties are not only to govern their organisations responsibly, but to engage transparently and cooperatively with the Charity Commission when called upon to do so.
