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The Charity Commission has ruled a policy thinktank must conduct a corporate governance review after ruling its independence was at risk.
Results of an inquiry by the commission into the Smith Institute, a thinktank focusing on the policy implications of equality, enterprise and equity issues, have now been published.
First opened in February last year, the commission's inquiry has concluded the institute's trustees "were not sufficiently engaged to ensure the proper supervision of the charity."
Comission chief executive Andrew Hind said: "Trustees of charitable 'thinktanks' have a responsibility to ensure the political neutrality of the work they do."
He added the Smith Institute trustees had not adequately managed risks posed to its independence and reputation.
The institute has previously faced allegations it lacks political balance after regularly using 11 Downing Street to hold events.
It will now have to report to the commission on its progress with the governance review in six months' time and also faces a visit and further review in a year.
The Charities Act 1993 gives the commission powers to hold inquiries into charities and order trustees and staff to take corrective action it deems necessary.
To find out more about our charity legal services, or to discuss a legal matter concerning your charity or not-for-profit organisation, please contact our charity law team on 01753 279059 or email charitylaw@bpcollins.co.uk.
