On 7 August 2026, the Charity Commission said it had opened a statutory inquiry into Al-Khair Foundation after receiving a complaint in July 2026 alleging that the charity and some of its partners had links to Hamas, which is a proscribed terrorist organisation under UK law. The formal inquiry was opened on 5 August 2026 under section 46 of the Charities Act 2011, a step the regulator said was justified by concerns about risk to charity property and to public trust and confidence in the sector. (gov.uk) The Commission’s statement says Al-Khair Foundation works in the UK and overseas and reported income of more than £74 million for the financial year ending 31 July 2025. Alongside the inquiry, the regulator imposed a legal restriction on certain transactions because it said there was a possible serious risk to charitable funds. (gov.uk)
The Commission also said it is aware of Mohammad Yousef Hasna, described as an individual employed by an organisation that works with Al-Khair Foundation to deliver aid in Gaza, who has been arrested in the UK and charged by US authorities with conspiring to provide material support to Hamas. The regulator said part of its task will be to verify the nature of his connection to the charity and assess the wider allegations made in the complaint. (gov.uk) That distinction is important for readers of any live regulatory case. The Commission’s own inquiry guidance states that the purpose of a statutory inquiry is to establish the facts and that the opening of an inquiry should not, by itself, be treated as a finding of wrongdoing, except where the regulator has had to use an immediate protective power. (gov.uk)
Under section 46 of the Charities Act 2011, the Commission may institute inquiries into a charity generally or for particular purposes. Its published guidance says it will use this route where the regulatory issues are serious and where it needs inquiry-only powers, sees evidence of misconduct or mismanagement, identifies a risk to charity property, or considers action necessary to protect public trust and confidence. (legislation.gov.uk) In plain terms, a statutory inquiry is the Commission’s formal investigative route rather than routine case correspondence. It gives the regulator a stronger legal basis for examining the facts and, where necessary, using temporary protective powers while the case is still being tested. (gov.uk)
In this case, the immediate protective step was an order made on 5 August 2026 under section 76(3)(f) of the Charities Act 2011. The Commission said the order restricts certain transactions by the charity to Mr Hasna, his organisation or Gaza unless the regulator gives prior consent; the statute allows the Commission to restrict transactions or the nature or amount of payments made in the administration of a charity. (gov.uk) The legal effect is practical as well as reputational. Section 77 of the same Act makes it an offence to breach a section 76(3)(f) order, with liability on summary conviction to a fine. In practical terms, any payment or arrangement caught by the restriction now needs a clear approval process before it can proceed. (legislation.gov.uk)
The published scope of the inquiry is focused on trustee conduct rather than the delivery of humanitarian aid in itself. The Commission says it will examine the nature and extent of any links to Mr Hasna, whether trustees carried out suitable checks and due diligence on international partners, whether they monitored the end use of funds overseas and maintained suitable policies and procedures, and whether any weaknesses amount to misconduct or mismanagement in the administration of the charity. (gov.uk) That focus matches the Commission’s standing guidance. Its counter-terror toolkit says trustees must manage charity resources responsibly, carry out appropriate due diligence on partner organisations, check whether relevant individuals or entities are designated or proscribed where the risk is high, and keep effective control and monitoring arrangements in place. Separate Commission guidance on moving funds safely also points trustees towards formal banking routes, financial controls and audit trails when money is sent overseas. (gov.uk)
The Commission has also drawn a firm line around its own role. It says it cannot investigate criminal matters and will refer evidence of criminal activity to the police if such evidence emerges during the case. Once the inquiry concludes, the regulator says its normal practice is to publish a report setting out the issues examined, action taken and the outcome, and it has reserved the right to widen the inquiry if additional regulatory issues appear. (gov.uk) For the wider charity sector, the case is a clear example of how overseas aid delivery, trustee governance and counter-terror safeguards meet in one regulatory process. Taken together, the Commission’s statement and its published guidance indicate that charities operating through partners in conflict settings are expected to be able to evidence partner screening, end-use monitoring, record-keeping and the steps taken to protect funds from misuse. (gov.uk)