A report published by the UK National Audit Office has found that the Charity Commission is "not regulating charities effectively," "makes little use of its enforcement powers," and has "reduced the number of staff monitoring charities from around eight full-time equivalents to less than two … [increasing] the risk that serious concerns will go undetected."

The Charity Commission itself acknowledges this problem. In a submission to a Government counter-terrorism inquiry, the Commission stated:

"Some [charities] are at risk of their funding being diverted for terrorist purposes or of charity personnel using the charity as a cover for travelling overseas for terrorist training or for raising funds…. There are number of ways in which charities can be vulnerable to abuse for terrorist purposes."

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