If the Commission appoints an interim manager: what it means and how to work through it

For most charities, an interim manager is something they will only ever read about. It is one of the Charity Commission's strongest powers, used in a small number of the most serious cases. But if your charity is facing one — or you simply want to understand what it would mean — it helps to know the facts rather than the fear. An interim manager is a protective, temporary step, not a punishment, and in many cases the goal is to steady the ship and hand it back. This article explains what actually happens, what stays with the trustees, and how to work constructively towards getting your charity back on track. It is general information, not advice — if this is a live issue for your charity, take your own professional and legal advice early.

First, what an interim manager is (and isn't)

An interim manager (once called a "receiver and manager") is a person the Commission appoints, under section 76 of the Charities Act 2011, to take over some or all of the running of a charity for a period. Two things are important to understand from the outset:

• It only follows a statutory inquiry. The Commission can only appoint an interim manager once it has opened a formal statutory inquiry into the charity, and is satisfied either that there has been misconduct or mismanagement, or that the step is necessary or desirable to protect the charity's property. It is not a first response — it sits at the serious end of the Commission's toolkit.
• It is protective and temporary. The purpose is to safeguard the charity, its assets and its beneficiaries while problems are addressed — not to close the charity down. The appointment is meant to end once the charity can be safely returned to normal governance.

These powers apply to charities in England and Wales. Scotland (OSCR) and Northern Ireland (CCNI) have their own regulators and different arrangements.

It doesn't come out of nowhere

An interim manager appointment is rarely a surprise. It normally comes after a period of engagement with the Commission — often after other regulatory action, an inquiry, requests for information, or a chance to put things right. That matters, because the single most effective thing trustees can do at every earlier stage is engage openly and promptly with the regulator. Problems that are met early, honestly and cooperatively are far less likely to escalate to this point.

What actually changes when one is appointed

The appointment comes with an order that sets out the interim manager's exact powers — and this scope varies from case to case. It might mean:

• The interim manager takes on all the powers and duties of the trustees, acting to the exclusion of the existing trustees; or
• The interim manager takes on specific powers only — for example over the charity's finances or a particular problem — and works alongside the trustees for everything else.

A few points that surprise people:

• Trustees usually remain in office. Being subject to an interim manager is not the same as being removed. In most cases trustees stay as trustees, but are suspended from exercising the functions the order gives to the interim manager.
• The interim manager works under the Commission's supervision, not as the trustees' agent. They report to and are overseen by the Commission.
• Your duties don't simply vanish. Where the order leaves powers with you, you remain responsible for exercising them properly, and you retain a duty to cooperate.

The cost falls on the charity — an honest word

This is the hard part, and it's better said plainly than discovered later. The interim manager's fees are normally paid out of the charity's own funds — its income, its future income, and if necessary by converting expendable capital, and can draw on restricted income for that purpose. These costs can be significant, and in serious, long-running cases have run into six figures. It is one of the reasons the power is used sparingly — and one of the strongest practical arguments for addressing problems long before they reach this stage.

What you can still do — and should

If an interim manager is appointed, the instinct to be defensive is understandable, but rarely helpful. The trustees who come through this best are the ones who treat it as a route back to health rather than a battle. Concretely:

• Read the order carefully and be clear about exactly which powers have passed to the interim manager and which remain with you. Act within that boundary.
• Cooperate fully and promptly. Provide records, access, explanations and information. Obstruction lengthens the appointment, increases the cost and reflects badly on the board.
• Take your own advice. You are entitled to independent legal and professional advice, and in a serious matter you should get it — being cooperative is not the same as being unrepresented.
• Don't go silent with the people who depend on you. Think about how you communicate appropriately with members, staff, volunteers, beneficiaries and funders. Say what you properly can, calmly and without speculation.
• Fix the root cause, not just the symptom. Whatever led here — weak financial controls, unclear decision-making, a safeguarding failure, a conflict of interest left unmanaged — use the period to put durable systems in place. This is the work that ends the appointment.
• Look after your people. These situations are stressful and can be very public. Trustees and staff are volunteers and employees first; their wellbeing matters through it.

Working towards handover

Because the appointment is meant to be temporary, there is a destination: returning the charity to the ordinary control of its trustees (whether the existing board, a strengthened one, or new trustees). The way you reach it is by demonstrating that the underlying problems have been resolved — sound finances, proper records, clear governance, and a board that can be trusted to run the charity well. In some cases the outcome is different — a restructure, a merger, or an orderly wind-up — but even then, constructive engagement gives the trustees a voice in how it happens.

The best position is not to need one

Almost everything that leads to an interim manager is easier to prevent than to cure. Strong basics are the protection: clear governance and decision-making, sound financial controls and oversight, trustees who understand their financial responsibilities, robust safeguarding, and a culture of taking compliance seriously rather than hoping problems go away. And when the Commission does make contact, respond early and openly — the earlier a concern is engaged with, the less likely it is ever to reach this stage.

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This article is general information, not advice. If your charity is facing regulatory action or an interim manager appointment, the details matter enormously and you should take your own legal and professional advice without delay. If you'd like a calm, confidential conversation about strengthening your governance and finances, talk to us — that groundwork is exactly what keeps charities well away from this point.