Mental Health Aberdeen closure: Inappropriate expenditure allegations
Stuart McKay · Posted on: September 29th 2025 · read
In a development that has drawn significant public attention, Mental Health Aberdeen, a well-established charity operating for nearly 70 years, announced its sudden closure in July 2025.
The organisation cited unsustainable demand for services and growing financial strain as primary reasons. However, the abruptness of the announcement has raised deeper concerns, particularly regarding allegations of inappropriate use of charitable funds.
Following these concerns, the Scottish Charity Regulator (OSCR) escalated its review to a formal inquiry. This investigation will seek to determine whether there were any breaches of trustee duties or misuse of resources. Inappropriate expenditure allegations at closed mental health charity probed
This case underscores the importance of financial transparency, risk management, and internal controls. In particular, trustees must ensure that their charity has robust systems in place to track spending, especially during periods of financial stress. Any use of funds should be clearly documented, in line with the charity’s objectives, and capable of withstanding external scrutiny.
Charities facing operational challenges, whether due to fundraising pressures or service demands, should adopt proactive risk management strategies. This includes scenario planning, cash flow forecasting, and engaging independent advisors when financial decisions become complex. Importantly, charities should also have a crisis communications plan in place to manage reputational risks in the event of sudden changes.
The Mental Health Aberdeen closure raises a key governance question: how often are trustees reviewing financial reports, and do they truly understand them? Boards should prioritise training in financial literacy, especially for non-financial trustees, to ensure meaningful oversight.
This situation also demonstrates the value of early engagement with regulators when a charity is in distress. Involving the regulator early can help mitigate risk and allow for a more managed transition, something that may have been missing in this case.
