Charity Inquiry: National Equine Training Trust – wider learning for the charity sector

National Equine Training Trust (“the charity”) was registered by the Charity Commission on 14 December 1995. It is governed by a declaration of trust dated 9 November 1995.

The charity’s objects are to provide education and training on the care and welfare of equine animals, to prevent / relieve the suffering of such animals and promote their welfare.

On 13 November 2018 an adverse possession claim for the land was made. This means that an individual claimed possession of the land by virtue of the fact that they had been occupying it continuously for a particular period of time (sometimes referred to as “squatters’ rights”).

The Charity Commission established that the charity’s trustees were not responding to the proceedings relating to this claim and so the interests of the charity were not being represented in the proceedings, resulting in a significant risk of the charity losing its property.

The learnings of this inquiry for the wider charity sector include:

Trustees have a responsibility to manage charity property responsibly and to make sure the charity’s assets are only used to support or carry out its purposes. Trustees must also avoid exposing the charity’s assets to undue risk. Trustees must ensure appropriate procedures and safeguards are put in place and should take reasonable steps to ensure that these are followed; otherwise, trustees risk making charity property vulnerable and being in breach of their duty.

If a charity becomes inactive, it must be wound up properly in accordance with its governing document. Charity property must also be disposed of correctly in accordance with charity law.

Where a trustee is resident outside of England and Wales and their absence impedes the proper administration of the charity, the Commission may take action to remove them.

The full inquiry can be accessed here.