Supporting charities through change: The power and purpose of the interim manager

In the UK charity sector, the Charity Commission plays a vital regulatory role in ensuring that charities operate within the law and maintain public trust. One of its most significant powers is the appointment of interim managers. It is a measure reserved for the most serious cases where a charity’s governance or operations have failed and intervention is required.

What is an interim manager?

An interim manager (IM) is a professional appointed by the Charity Commission under Section 76 of the Charities Act 2011 to manage the property and affairs of a charity. This appointment typically follows the opening of a statutory inquiry under Section 46 of the Act, which occurs when there is evidence of misconduct, mismanagement, or a need to protect the charity’s assets.

The Commission may appoint an IM to support or replace existing trustees, depending on the severity of the issues. In most cases, the IM acts to the exclusion of trustees, especially when trustees are unable or unwilling to resolve the problems themselves.

When and why are interim managers appointed?

IMs are appointed in situations such as:

• Financial mismanagement or suspected fraud
• Governance failures
• Safeguarding concerns
• Breaches of legal obligations
• Failure to comply with Commission orders

The purpose of appointing an IM is to protect the charity’s assets, restore good governance, and support the charity in returning to stable and compliant operations. Rather than being a punitive measure, it is a constructive intervention designed to help charities recover, rebuild trust, and continue delivering public benefit. In the most severe cases, the IM may necessarily take steps to transfer the operations to an alternative provider and/or wind down the charity.

What are the duties and responsibilities of an interim manager?

An IM’s role is akin to that of a trustee, but with a specific focus on crisis resolution and regulatory compliance. Their responsibilities may include:

• Performing an independent financial review on the viability of the charity, with recommendations to the Charity Commission on a way forward
• Focused forensic reviews to investigate fraud or misconduct
• Securing and managing charity assets
• Overseeing staff and operations
• Conducting governance reviews and assessing the suitability of trustees to govern
• Implementing safeguarding improvements where necessary
• Preparing the charity for a return to normal governance or, in extreme cases, winding it down

IMs must act with integrity, transparency, and professionalism, adhering to the interim managers Code of Practice, which outlines expectations around communication, conflict of interest, and reporting.

Skills and expertise of interim managers

Interim managers are selected from a list of approved practitioners maintained by the Charity Commission. They bring specialist knowledge and hands-on experience to complex and sensitive situations, often working under intense scrutiny and tight timelines.

Candidates typically have specialist experience in areas such as:

• Charity law
• Financial management and accountancy - typically with specialisms in restructuring, insolvency and forensics
• Safeguarding
• Housing
• Cybersecurity

Six key reflections from interim managers

Forvis Mazars has a number of practitioners who successfully operate as IMs. Their roles have included a wide range of projects across a wide range of sectors and charity types. Examples of their work include assignments with an animal sanctuary, a specialist school, a care provider, and a charitable fund impacted by international sanctions

Drawing on these experiences, we’ve identified six key reflections for charity trustees to strengthen governance, reduce risk and build organisational resilience.

Concluding comments

Interim managers serve as a critical safeguard within the UK charity sector. Their appointment is a serious step, reflecting the Charity Commission’s commitment to upholding standards and protecting charitable assets.   

IMs often encounter complex situations, may face resistance from Trustees and staff, often need to make difficult decisions, must balance their costs and value add, and, where the charity survives, help rebuild trust and reputation.

Trustees can learn valuable lessons from IM appointments, improving their governance structure and decision-making processes, whilst at the same time reducing the risk of their own charity being subject to a Charity Commission investigation and IM appointment.