The UK Charity Commission has concluded its investigation into Volcanoes and Miracle Ministries International (MFM), finding that former and current trustees lacked adequate oversight and control of charitable funds within the organization’s UK network.
The commission launched an investigation after uncovering financial problems, including alleged misappropriation of funds. Investigators reported that trustees were unable to provide effective oversight of more than 100 bank accounts operated by various branches, putting charity funds across the network at risk.
Findings revealed that many of the financial problems were caused by the charity’s rapid expansion, from a handful of branches to more than 90 locations across the country, without commensurate improvements in governance. Branch offices had significant autonomy, opened bank accounts without central approval, and failed to report income in a timely manner, resulting in inaccurate financial reports. The investigation also found that branches made significant financial decisions, such as property purchases and lease agreements, without the knowledge or authority of the trustees.
These deficiencies resulted in financial losses for the charity. In some cases branches have occupied properties without obtaining the necessary planning permission, leading to costly legal action by local councils. Additional losses were incurred as a result of the failure to formally enter into an employment contract, resulting in the costs of resolving the employment dispute.
In response to the identified risks, the Charity Commission froze the charity’s assets to prevent further losses and appointed an interim manager in 2019 to work with the remaining trustees to implement necessary financial controls and improve governance. The appointment of an interim manager took a long time due to the complexity of the reforms and delays caused by the legal process. The interim manager was fired in September 2024.
Following the governance reforms, the Commission issued an order directing the charity to follow a regulatory action plan covering governance and policy changes. The committee has confirmed that the trustees have complied with the plan.
Amy Spiller, head of investigations at the Charity Commission, said: “As our investigation has made clear, a charity’s rapid growth comes with correspondingly greater potential risks.” “In this case, the trustees fundamentally failed to maintain financial controls, which meant donor funds were at serious risk across the network. With the intervention of the commission and the interim manager, the trustees were better able to implement the necessary changes, which means the charity can now operate effectively and focus on delivering its charitable objectives.”
MFM operates through a network of affiliates and states that its purpose is to promote Christianity.
