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Charity Commission Launches Formal Inquiry Into Education Charity Crossfields Institute
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Regulator investigates governance, financial reporting failures and concerns over the future of charity's operations
The Charity Commission has opened a formal statutory inquiry into Crossfields Institute, an education charity based in Gloucestershire, amid concerns over its governance, financial management and future operations. The regulator announced on 12 October that it is investigating whether those responsible for running the charity have fulfilled their legal duties and whether appropriate safeguards are in place to protect its assets and charitable objectives.
Crossfields Institute, which provides training and qualifications across several sectors, has come under scrutiny following a series of regulatory concerns, including repeated failures to submit required financial information. The charity was placed into the Commission's Double Defaulters Class Inquiry in September 2025 after failing to file accounting information for the financial years ending 31 March 2023 and 31 March 2024. During that process, it also failed to submit financial returns for the year ending 31 March 2025.
While the failure to file accounts does not in itself indicate financial wrongdoing, the Charity Commission says persistent reporting failures can raise concerns about transparency, accountability and whether trustees are effectively overseeing an organisation's affairs. The inquiry will also examine whether Crossfields Institute has a sufficient number of trustees who are willing and able to manage the charity in line with its governing document and legal responsibilities.
Trustees are responsible for overseeing a charity's activities, protecting its resources and ensuring decisions are made in the organisation's best interests. Where governance structures are weak or inadequate, concerns can arise about a charity's ability to manage risk and fulfil its charitable purpose.
In addition, the Commission is investigating whether the charity has appropriate financial controls in place to safeguard funds and manage financial risk. Effective controls help ensure charitable resources are properly protected and that significant financial decisions are authorised and recorded appropriately.
One of the most significant issues under review is whether some of Crossfields Institute's activities or operations may have been transferred to a non-charitable company. The Charity Commission has not concluded that any improper transfer took place. However, it has confirmed the matter forms part of the inquiry and will be examined alongside transactions involving connected parties, potential conflicts of interest and whether any unauthorised private benefit may have arisen.
Investigators will also assess how trustees have made decisions concerning the charity's future and whether those decisions were properly documented and consistent with their legal obligations.
Transfers involving charitable assets or activities can present complex governance issues, particularly where connected organisations are involved. Regulators will seek to establish whether trustees acted lawfully, managed conflicts appropriately and protected the interests of the charity.
The statutory inquiry will focus on four key areas: trustee oversight, financial accountability, conflicts of interest and trustee decision-making. The Commission has stated that the scope of the investigation may be expanded if further concerns emerge during its enquiries.
The inquiry was formally opened on 7 September 2026 under Section 46 of the Charities Act 2011 after the regulator identified concerns that misconduct or mismanagement may have occurred in the administration of the charity. A statutory inquiry allows the Charity Commission to use its legal powers to investigate concerns and, where necessary, take action to protect a charity's assets, beneficiaries and reputation.
Importantly, the opening of an inquiry does not amount to a finding of wrongdoing. The Commission has made clear that no conclusions have been reached and that the investigation is intended to establish the facts before determining whether regulatory action is required. The case highlights the crucial role of financial transparency, effective governance and trustee accountability in maintaining public confidence in charitable organisations.
For now, key questions remain unanswered. Whether Crossfields Institute had adequate oversight and financial safeguards in place, whether trustees met their legal obligations, and what role any non-charitable organisation may have played in its operations are all matters that will be determined through the Commission's investigation.
The Charity Commission is expected to publish its findings once the inquiry has concluded.
