The Charity Commission has opened a statutory inquiry into Eldonian Community Trust Limited, escalating a compliance case that was launched two years ago. 

The charity, which is based in Liverpool and was incorporated in 1987, aims to advance education and to establish or secure a community centre. 

There are several organisations linked to the Eldonian name, but only Eldonian Community Trust Limited is registered as a charity and subject to the commission’s regulations.

The regulator opened a regulatory compliance case into Eldonian Community Trust Limited in 2022 over concerns about its governance. On 21 August 2024, the commission escalated its case to an inquiry.

The inquiry will investigate the extent to which the current trustees are complying with their legal duties in relation to the administration, governance and management of the charity.

It will look at whether there are sufficient trustees who are willing and capable of managing the charity and have managed it in accordance with its governing document.

The inquiry will also examine whether the trustees are complying with their legal obligations in relation to the content, preparation and filing of the charity’s annual accounts and returns.

According to information available on the Charities Register, Eldonian Community Trust Limited has eight trustees and its latest accounts are overdue by 42 days.

Between September 2018 and September 2022, the charity’s income fell from £17,640 to £0, while its expenditure decreased from £22,680 to £2,710.

Third Sector understands that the charity was not functioning for some years due to the advanced ageing of some of its trustees, with several having passed away.

A spokesperson for the charity said it has been engaged with the regulator since 2022, when the initial compliance case was opened.

They said: “The focus of this inquiry centres around the issue of whether the charity rules were fully followed with the election of 3 members at an annual general meeting in November 2023.

“There had not been any AGMs for several years due to the previous trustees’ advanced ageing, and of course the Covid-19 pandemic. 

“The trust would like to clarify that there are no financial concerns raised by the commission, and will of course continue to co-operate with the regulatory body.”

The regulator said that it understands that the charity’s trustees intend to challenge the decision to open an inquiry. When asked about plans to challenge the inquiry, the charity said it could not comment at this time.