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Post by blackcob on Sept 28, 2014 8:04:44 GMT
Hi Does anyone know what steps can be taken if you suspect a charity is operating as a tax dodge for the gain of the owners. ( before I go any further we are in Scotland which I suspect may alter the usual process.) This charity uses social media, and regularly updates on " progress" but my suspicions were raised when the field shelters they were asking for money for, never appeared, along with the new rugs for their "rescued" horses (probably bought cheap from sales!) who still wear tattered rugs to cover their bony bodies.(and yes they have been visited by welfare organisations.) Some friends of ours had the same suspicions and obtained their accounts under the freedom of information laws. Guess what? While they plead poverty they appear to be really quite well off having had an "anonymous" £60 000 "donation". This happens to be the amount that the owner told someone locally that she was "owed" by a relative, and that she stood to inherit millions on top once things were sorted out. Now I hate paying tax as much as the next person. But surely if you ran a charity and had horses needing rugs to keep them warm, and had the cash sat in an account you would just buy them-and put up the field shelters that you proudly claim on social media to be constructing? I suspect the charity is a way of inheriting a substantial sum of money and dodging the tax. It is certainly not there for the welfare of the poor animals there! Incidentally one resident at the address was done by trading standards in the past for various issues. Please check out who you are "donating" money to...in addition to the larger sum this charity has had many thousands more off people who can probably not afford to give it away but are taken in by a charity that openly asks for donations, free feed, hay, bedding and rugs and yard equipment! In my mind it is fraud.
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Post by gillwales on Sept 28, 2014 14:46:14 GMT
Contact the Charity Commission, or it's Scottish equivalent and ask if this is a registered charity, if not contact the police as this is fraud. If it is raise your concerns with the Commission and forward any proof you have, they should then look into it
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Post by lucynlizzysmum on Sept 28, 2014 15:03:56 GMT
I assume that you have checked whether or not it is registered as a charity? If it is not registered as a charity and is operating fraudulently I would contact the police in the first instance. As you are in Scotland you need to look at OSCR - Office of the Scottish Charity Regulator. If they are a charity and they are obtaining money and it is not being used for charitable purpose, there could be money laundering implications. At the very least I think you would probably have grounds to report them to OSCR who could then monitor them. It does worry me how many "charities" there are now, many who seem to operate on social media.
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Post by mollymalone on Sept 28, 2014 19:15:34 GMT
Totally agree with the above suggestion. Charities have many rules and regulations such as requiring trustees who are appointed to ensure the charity is running in line with its purpose and appointing funds correctly. The relevant regulators appreciate those potential uncharitable organisations being brought to their attention as they cant monitor everyone all the time. And if it turns out to be a valid charity then I imagine the charity could be investigated for inappropriate use of funds - eg not allocating sufficient funds for welfare.
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Post by blackcob on Sept 28, 2014 19:42:39 GMT
Hi It is definitely a registered charity, hence how friends managed to get hold of their accounts by requesting them. It would be laughable but now the latest twist is they are apparently letting out their cottage, living in a static with no permission ( this especially makes my blood boil when we paid £384 to do the same!) and are having a house built next to the stables (presumably so they are " on site" even though the aforementioned cottage is yards away!) Funny on their accounts there is no mention of livery income when I know they were also getting £100 a week at one point for this too.... ?
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Post by gillwales on Sept 28, 2014 19:58:27 GMT
many avenues are offered to you from what you have told us. The Tax man, the Scottish version of the Charities Commission, your local council.
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Post by lucynlizzysmum on Sept 28, 2014 20:06:12 GMT
From what you have stated Blackcob, I would report to OSCR tomorrow and take from there. Good luck, if you want to pm me if I can help, I will
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Post by Louise Dixon on Sept 29, 2014 6:55:17 GMT
I have dealt with OSCR quite a bit, not for this sort of thing, but they are always very helpful on the phone.
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Post by Toaster on Sept 29, 2014 8:54:18 GMT
concentrate on the financial facts and complain to the right people, they will take action if needed.
All of the other things like the cottage muddy the waters and makes it look like you have a personal axe to grind and don't forget that anything you put on social media can be twisted and used to make you look bad!
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Post by CarolineNelson on Sept 29, 2014 12:44:40 GMT
concentrate on the financial facts and complain to the right people, they will take action if needed. All of the other things like the cottage muddy the waters and makes it look like you have a personal axe to grind and don't forget that anything you put on social media can be twisted and used to make you look bad! Wise words. Four months ago I took over the voluntary secretaryship and treasurership of the local 'Club' of the sheep society which I breed. (like most equine Societies, this Breed has Area branches and it has sufficient local interest to have almost self-supporting and definately self managing local clubs within that). Banking with the BOS (the club spans both sides of the 'Border') both my Chairman who is Northumbrian and I with a Scottish address have needed to go through - indeed are still going through - numerous hoops just to change the signatory - seemingly the BOS is paranoid about money laundering and wrong-doings. Reading your concerns, I'm not surprised. Therefore I'm astounded that these people have so far not been caught up with. Any "Charity" not only has obligations to it's "Welfare" Aims, but to an ongoing 'Educational' plan, whether it be judges training, public knowledge, genetical improvement, promotion or whatever. And I know, from many prevous years spent at the business end of a very major equine Society, that the Charities Commission, quite rightly, are determined that those under their umbrella do actually do what they state.
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Post by Guestless on Sept 29, 2014 19:45:54 GMT
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Post by blackcob on Oct 1, 2014 10:21:36 GMT
Thanks- I will get all the paperwork together and have been researching the legalities of donating and tax avoidance but as you can imagine it's a bit of a minefield! I don't have a personal axe to grind-I just don't like seeing skinny cold TBs on a hillside or hearing how stables aren't watertight, then finding out that bank accounts are bulging! However I can see how my comments may have been misconstrued so I apologise if that's how I came across. The bit about the caravan merely riled because we had to go through the full planning process to enable us to live in one for 3 years while we build our own place (it'll take a lot longer than that anyway lol!) It cost the same as pp for a house (which was already in place anyway) but I digress! Everyone's comments have been really helpful-my suspicions may be completely unfounded. If so I will simply enquire as to why they are always asking for donations to do what they can easily afford anyway. Thanks guys.
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