The Commission opened the inquiry after identifying financial concerns, including alleged misappropriation of funds. Investigators reported that trustees could not demonstrate effective oversight of more than 100 bank accounts operated by individual branches, leaving charity money at risk across the network.
According to the findings, many of the financial issues arose from the charity’s rapid expansion—from a small number of branches to more than 90 locations nationwide—without corresponding improvements in governance. Branches operated with significant autonomy, opening bank accounts without central approval and failing to report income promptly, which led to inaccurate financial reporting. The inquiry also found that branch offices made substantial financial decisions, such as property purchases and lease agreements, without the knowledge or authorisation of the trustees.
These shortcomings resulted in financial losses for the charity. In some cases, branches occupied properties without securing the necessary planning permission, leading to costly legal action by a local council. Additional losses occurred due to failures to formalise employment contracts, which contributed to payments made to settle employment disputes.
In response to the risks identified, the Charity Commission froze the charity’s assets to prevent further loss and, in 2019, appointed an interim manager to work alongside the remaining trustees to implement essential financial controls and improve governance. The interim manager’s appointment was lengthy because of the complexity of the reforms and delays caused by legal proceedings. The interim manager was discharged in September 2024.
Following the governance reforms, the Commission issued an order directing the charity to follow a regulatory action plan covering governance and policy changes. The Commission has confirmed that the trustees have complied with that plan.
“The rapid growth of a charity comes with correspondingly larger potential risks, as our inquiry clearly shows,” said Amy Spiller, Head of Investigations at the Charity Commission. “In this case, the trustees’ fundamental failure to maintain financial controls meant donor funds were at serious risk across their entire network. Following the intervention of the Commission and the interim manager, the trustees were better able to implement essential reforms, meaning the charity can now operate effectively and focus on delivering its charitable objects.”
MFM operates through a network of individual branches and states that its purpose is to promote Christianity.
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