OSCR enforcement and charity investigations

What triggers an OSCR inquiry

OSCR may open an inquiry for a range of reasons, including:

• Late or missing annual returns: Persistent failure to file is the most common trigger for initial OSCR contact
• Complaints: Concerns raised by the public, beneficiaries, employees, or other trustees
• Media reports: Adverse press coverage about a charity's activities or governance
• Information from other regulators: Referrals from HMRC, police, the Charity Commission, or local authorities
• Notifiable event reports: Serious incidents reported by the charity itself
• Monitoring return analysis: Anomalies in financial data, governance responses, or activity reports
• OSCR's own intelligence: Proactive monitoring, sector-level reviews, or thematic inquiries

An inquiry does not necessarily mean wrongdoing has occurred. OSCR may open an inquiry simply to satisfy itself that a charity is operating properly.

OSCR's enforcement powers

OSCR's powers range from requesting information to directing the removal of trustees. The 2023 Act added several important new powers.

The inquiry process

Stage 1: Information gathering

OSCR will write to the charity requesting specific information and documents. You are legally required to comply. Failure to provide information requested by OSCR, or providing false or misleading information, is a criminal offence.

Stage 2: Assessment

OSCR reviews the information provided and may request further clarification, interview trustees, or visit the charity's premises. At this stage, OSCR may decide that no further action is needed, or that the matter requires formal regulatory action.

Stage 3: Regulatory action

If OSCR finds that there has been misconduct, mismanagement, or a failure to meet the charity test, it can take a range of actions depending on the severity:

• Directions: OSCR can direct the charity to take specific steps (e.g., change a policy, remove a trustee, improve financial controls)
• Suspension: Under the 2023 Act, OSCR can suspend a trustee during an inquiry for up to 12 months
• Removal of trustees: OSCR can direct the removal of a trustee who has been responsible for misconduct or mismanagement
• Appointment of interim trustees: In serious cases, OSCR can appoint trustees to protect the charity
• Freezing assets: OSCR can apply to the Court of Session to freeze a charity's assets if there is a risk of dissipation
• Removal from the register: The ultimate sanction, removing the charity from the Scottish Charity Register

Charity reorganisation schemes

Not all OSCR interventions are punitive. OSCR also has powers to approve reorganisation schemes that help charities adapt to changing circumstances.

If OSCR contacts your charity

If you receive a letter or email from OSCR about an inquiry or requesting information:

• Respond promptly: OSCR sets deadlines for responses. Missing them escalates the matter.
• Be transparent: Provide complete and honest information. Concealing problems makes things significantly worse.
• Seek advice early: Consider engaging a solicitor experienced in charity law, particularly for serious matters.
• Inform your board: All trustees should be aware of any OSCR inquiry. Do not attempt to handle it without board knowledge.
• Cooperate with OSCR: Obstructing an inquiry is a criminal offence and demonstrates the kind of governance failure that OSCR takes most seriously.

Appeals

If OSCR makes a decision that your charity disagrees with (such as refusing registration, directing removal of a trustee, or removing the charity from the register), you can appeal to the Scottish Charity Appeals Panel (SCAP). The appeal must be made within the time limit specified in OSCR's decision letter, which is typically 28 days.

SCAP can confirm, vary, or reverse OSCR's decision. Further appeals on points of law can be made to the Court of Session.