Colchester C360 'did not require approval' from for £200k loan

Tracy Rudling, the Community 360 chief executive who has been involved in the charity since the 1990s, has said that because the loan was signed off by independent auditors, it did not require approval from the Charity Commission.

In a statement released by a charity spokesman, it was also explained how the loan was fully agreed by the Community 360 board.

It read: “For the past 20 years, our CEO has provided commercial storage facilities for Community 360 on her land at no cost to the charity.

Assessment – the Charity Commission has said it is reviewing evidence to determine if it needs to intervene (Image: Pixabay)

“As the scope of support required in the local community grew, the charity determined that it would need to expand these storage facilities to meet demand.

“In 2022, Mrs Rudling agreed to provide Community 360 with the opportunity to expand further onto her land, but felt strongly as the landowner that it should not be the responsibility of the charity to invest in this development.”

It was also explained in the statement how Mrs Rudling is repaying the loan in monthly instalments, though it is not clear whether the loan has been fully repaid, or when it will be fully repaid by.

It continued: “In order to allow Community 360 to expand the storage facilities that enable us to deliver vital work across the community, the board agreed to grant a short-term loan to Mrs Rudling, which is being repaid in monthly instalments.

“The loan agreement has collateral built in and a robust clause that the charity can be paid back any time it deems necessary.”

The spokesman also explained the loan “did not require additional sign-off from the Charity Commission” because it had been independently audited.

Repayment – it is understood Tracy Rudling, the C360 chief executive, is repaying the loans to the charity in monthly instalments (Image: Pixabay)

He said: “Community 360 was not contacted by the Charity Commission about the loan, as this was independently signed off by auditors and did not require additional sign off from the Commission.

“We are committed to working closely with the Charity Commission and all other partners to ensure we are upholding our core value of transparency, and will always ensure we are following all due diligence and regulatory processes on these matters."

He continued the loan has been funded by income generated reserves which has "allowed Mrs Rudling to continue to provide philanthropic support via the use of her land, and to enable C360 to increase its revenue through the interest contribution from loan repayments, which has been inflated above standard market interest rates at the request of Mrs Rudling to further support her desire to financially give back to the charity."

The Charity Commission reiterated that although Community 360 is not under formal investigation, it is looking at evidence which will help them decide whether or not to intervene.

A spokesman said: “We are assessing concerns raised with us relating to Community360 and are reviewing evidence available to us to determine if there is a regulatory role for the Commission."

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