# Poor management at Mermaids amounted to mismanagement, not misconduct, inquiry finds - Link: https://fundraising.co.uk/2024/10/24/poor-management-at-mermaids-amounted-to-mismanagement-not-misconduct-inquiry-finds/ - Published: 2024-10-24T09:46:46+01:00 - Author: Melanie May **The Charity Commission has published a report today (Thursday 24 October) concluding that, over several years, the charity Mermaids was not governed to the standards expected, which amounted to mismanagement during this time.** The Commission cites a failure to ensure its governance, culture and practices kept pace with its growing size, demand for services and public profile, as a major factor that contributed to wider governance failings.   The Commission opened a regulatory compliance case into [Mermaids](https://mermaidsuk.org.uk/) in September 2022 following complaints by the public that were highlighted in the media. Concerns were raised around chest-binding services and online support offered to young people, and alleged ties between the charity’s now former CEO and the Tavistock and Portman NHS Foundation Trust. The Commission looked at matters that fell within its remit, in relation to the trustees’ compliance with their duties and charity law.   ## Advertisement #### Statutory inquiry The regulator escalated its engagement to a statutory inquiry in November 2022 after the findings of an Equity, Diversity and Inclusion (EDI) review commissioned by Mermaids highlighted multiple issues of concern relating to the charity’s culture, operational management and processes. [The report](https://www.gov.uk/government/publications/charity-inquiry-mermaids) notes that the charity has addressed these with an action plan and has provided evidence of this to the Commission alongside additional steps recommended in a separate and wider external review of the charity’s governance.   The inquiry examined the administration, governance and management of the charity, including its leadership and culture. It also sought to determine if trustees have fulfilled their duties under charity law, in line with the charity’s purpose. This included assessing for sufficient oversight of the charity’s activities and compliance with internal policies and procedures.  #### Findings of mismanagement The inquiry report makes a number of findings of mismanagement, including around trustees failing to:   * address internal issues around culture and inclusivity at the charity   * carry out sufficient due diligence checks when recruiting trustees, which resulted in the recruitment of someone the charity said should “never have been appointed” * properly adhere to their own internal HR policies when it came to the supervision of the former CEO and / or make clear to the former CEO and staff that the role did not fall into the charity’s normal HR management policy    The inquiry also found the purpose of the information about puberty blockers published on the charity’s website was unclear, and provided statutory advice on this matter, which the trustees have since acted on.  The inquiry found that the charity had a detailed policy relating to its chest binder service and demonstrated compliance with this policy, though in a small number of cases could have been more transparent with service users when declining requests. Mermaids terminated the service in October 2023. The Commission has issued statutory advice to the charity requiring that, if it ever resumes this service, its future policy and controls should reflect the recent Cass Review, or any future NHS guidelines on parental involvement.  #### Some concerns not upheld The Commission did not uphold all concerns raised about the charity with the inquiry, finding no evidence that Mermaids:    * provided medical advice, which would have been outside its charitable purposes  * made medical referrals for young people without the approval of a parent or carer  * held inappropriate influence or ties to GIDS at the Tavistock and Portman NHS Foundation Trust or to private medical practices  * failed to have appropriate safeguarding policies in place.  Commenting, Orlando Fraser, KC, Chair of the Charity Commission said:   > “The provision of services to children affected by gender identity issues is a > highly challenging area that requires great care and sensitivity. This is especially > so for charities, given the authority that registered status will likely carry > with children and their families. >   > “We have carefully scrutinised Mermaids’ activities through a statutory inquiry > and have found mismanagement in a number of areas. Mermaids cooperated with our > investigation and has been actively addressing the various concerns raised. >   > “Additionally, following the Cass Review, we have required Mermaids to present > a more accurate picture on its website as to the risks involved in the use of > puberty blockers, and to follow Cass Review findings on the involvement of parents > in social transitioning as regards any future provision of chest binders to children.” >   > “As the report indicates, there are lessons for other charities working in these > areas, including that they need to have regard to the findings, conclusions and > recommendations of the Cass Review.” #### Mermaids response Responding to the Commission’s report findings, [in a statement](https://mermaidsuk.org.uk/news/charity-commission-report-statement/) published on the charity’s site Mermaids Chair of Trustees, Kathryn Downs said: > “We are relieved that the Charity Commission Inquiry which began nearly two years > ago is finally over. The report states, as we anticipated, that there is no finding > of misconduct at Mermaids. >   > “The Commission has also confirmed, as we have repeatedly asserted, that we have > not provided medical advice or acted improperly in our work with children, young > people and their families. >   > “We can now look forward and concentrate all our efforts and energies on providing > high-quality support and empowering advocacy for trans children and young people > and the important people in their lives.” She added: > “The Trustees accepted that governance did not keep pace with the charity’s rapid > growth linked to rising support needs from trans young people and their families. > These historic governance issues were addressed through the implementation of > the recommendations of two independent reviews, proactively commissioned by our > Trustees, into [EDI](https://mermaidsuk.org.uk/wp-content/uploads/2023/01/EDI-Audit_-Recommendations-and-Next-Steps.pdf) > and [Governance](https://www.mermaidsuk.org.uk/wp-content/uploads/2023/08/Mermaids-Governance-Review.pdf). > The Board also strengthened due diligence processes for Trustee recruitment. >   > “Considering the changes already made at Mermaids independently of this Inquiry, > the time taken to publish this report has been frustrating, significantly affecting > Mermaids’ fundraising and ability to deliver on our charitable objectives. We > call on the Charity Commission to ensure that organisations serving groups facing > rising hostility are supported and protected, whilst being held to account where > this is necessary.” The full statement can be [read here](https://mermaidsuk.org.uk/news/charity-commission-report-statement/). * **[Charity Commission annual public meeting to be held on 26 November](https://fundraising.co.uk/2024/11/01/charity-commission-annual-public-meeting-to-be-held-on-26-november/)**( 1 November 2024) * **[Fundraising campaign for Israeli Defence Forces soldier earns charity official warning](https://fundraising.co.uk/2025/01/10/fundraising-campaign-for-israeli-defence-forces-soldier-earns-charity-official-warning/)**( 10 January 2025) * **[Charities supporting three times as many people with essential aid, research finds](https://fundraising.co.uk/2025/07/07/charities-supporting-three-times-as-many-people-with-essential-aid-research-finds-2/)**( 7 July 2025)