Charities have received over £32 million in funding from “dormant trusts” since 2018, it has been revealed.
It comes after the launch of the Future Funding scheme, which takes funds lying dormant in the accounts of inactive or ineffective charities and “puts them to good use”.
According to the report, the scheme has now repurposed more than £32 million in dormant funds from charities that are defined as “inactive” – meaning they have had no income or expenditure over the last five years, or “ineffective” – meaning they have spent less than 30 per cent of total income over the last five years.
If identified as inactive or ineffective, trustees of the charity are given time to relaunch the organisation or choose to redeploy the funds to other charities whose goals align with their own, or transfer the trust to a local community foundation to be managed for the long term benefit of local communities.
The latest data suggests that the scheme has contacted over 1,800 dormant charities to date, resulting in 179 charities being removed from the register and funds redeployed.
Commenting on the report, Baroness Stowell, Chair of the Charity Commission, said: “The Charity Commission is calling on trustees of charities that have funds and are inactive or unable to make the difference they once did or had hoped to achieve, to come forward now so that the charity money they hold doesn’t sit idle, but can be put to good use by other charities with similar causes supporting people and communities at this time of heightened need.”