The British Muslim charity Penny Appeal has said it is entering “a new chapter of governance” after its founder Adeem Younis “stepped down” from the organisation’s board of trustees.
Documents submitted to Companies House show that Younis’s role as a trustee came to an end on January 17, 2026.
Younis established Penny Appeal in 2009, creating the organisation to deliver poverty relief, emergency assistance and healthcare support across the Islamic world.
However, the charity, which is currently the subject of a Charity Commission regulatory compliance case, told the press that developments followed “a long-standing and constructive engagement” with the regulator and mark the start of “a new chapter of governance.”
“As part of this, the time is right for a change, so that the organisation can build on its foundations and grow successfully into the future under the stewardship of our new board of trustees. As part of this, this board now has no affiliation with the previous board.” A spokesperson for Penny Appeal said.
Governance and operational concerns
In recent years, Penny Appeal has been investigated by several regulators, including the Fundraising Regulator, the Charity Commission and the Information Commissioner’s Office.
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The Commission opened its current compliance case last year after a whistleblower raised a number of concerns relating to financial management and governance.
In 2024, the Fundraising Regulator found that Penny Appeal misled donors, failed to treat donors fairly and misused funds following an investigation.
The findings related to Penny Appeal’s OrphanKind and Hifz Appeal programmes which invited donors to sponsor individual children, implying that the money raised would be used exclusively for the benefit of that child.
However, it was not made clear that those children may not benefit directly from individual donations but would instead benefit indirectly from the accumulated money raised.
Penny Appeal’s Thirst Relief Appeal was also examined as part of the investigation, and was found in breach of the regulator’s code over the use of Direct Debits.
It found that the FAQs supporting the campaign were ambiguous and did not make it clear that a monthly Direct Debit would continue after 12 months until the donor cancelled it.
Financial details listed on the Charity Commission website show that in the year ending December 31, 2024, Penny Appeal received £12.5m in donations and legacies.
This represents a sizeable 44% drop compared with the £22.1m received the year before and an even greater climbdown from 2021 when they were able to collect £26.03m.
According to Civil Society Media, a whistleblower informed them: “A number of us have raised formal concerns internally and with regulators because we fear for the charity’s assets and the people it serves. We want transparency, protection for donors and an independent review so the charity can be put back on a stable footing.”
Penny Appeal’s reaction
Penny Appeal rejected the characterisation of the allegations, saying the whistleblower claims which have been reported “don’t reflect the organisational progress that has been made at Penny Appeal since 2024.”
A spokesperson explained that previous engagement with the Charity Commission had highlighted a number of governance issues linked to the charity’s former structure, including inadequate record-keeping.
Referring to an earlier compliance case that resulted in an official warning in 2023, the spokesperson said the organisation has continued implementing the commission’s recommendations, alongside carrying out its own independent review of governance.
“As part of this programme of enhancement, since late 2024, significant changes have been made to our organisation, including a new and experienced board of trustees,” they said.
The spokesperson also confirmed that income had fallen in 2024 and that redundancies were made towards the end of the year.
“This was a thorough process managed by an independent HR consultancy. We’ve also been able to reduce expenditure on contracts and the organisation is now on a stronger financial footing.”
They added: “Penny Appeal is now in a new and enhanced period of governance.
“We’re looking to the future with confidence, honouring our commitment to serving those most in need, transforming lives and empowering communities across the globe.”
A spokesperson for the Commission said: “We have an ongoing regulatory compliance case into the Penny Appeal to assess concerns raised with us and are actively engaging with the charity’s trustees.”
5Pillars reacted out to Adeem Younis for comment about his removal from the board, however he has not responded.
