The organisation behind the Madras College legal challenge has been cleared following a probe of its finances and governance.
St Andrews Environmental Protection Association – known as Stepal – was investigated by Scotland’s charities watchdog following a complaint earlier this year.
The Office of the Scottish Charities Regulator confirmed it had investigated and would take no further action.
Stepal won an appeal to the Court of Session which cost it £100,000 and quashed planning consent to build the new secondary school at Pipeland, in St Andrews’ green belt.
It was established as a limited company two years ago and was awarded charitable status in November, last year, listing children and young people among its beneficiaries.
Concerns were expressed about the company becoming a charity, particularly as this allowed it to claim taxpayers’ money via Gift Aid.
Stepal declined to comment when news emerged in April of the investigation but following its conclusion chair Mary Jack said: “I would wish Stepal’s many supporters and other members of the public to know that this complaint has been found to have no validity.
“Stepal will continue to energetically pursue its objectives to protect the environment and liaise with organisations which share or support Stepal’s aims.
“In the St Andrews context, this includes protecting the recently established green belt against inappropriate development, while welcoming developments which respect and enhance the natural environment of St Andrews and the surroundings of this historic town.”
St Andrews councillor Brian Thomson said the outcome was not surprising as Stepal would have passed tests when it applied to OSCR but there was a wider issue about such groups becoming charities and claiming Gift Aid.
He said: “I think that most people view a charity as an organisation set up to provide help and raise money for those in need and – setting aside charity law – that’s clearly not the case with Stepal.
“Many constituents have indicated that they find it incomprehensible that a body that’s been set up to block a desperately needed new secondary school can be granted charitable status and, personally, I’m particularly puzzled that the organisation lists children and young people as beneficiaries of its activities.
“I believe that groups such as Stepal raise broader questions about the granting of charitable status in Scotland – particularly as it allow organisations to secure tax payers’ money via Gift Aid – and the issue should be the subject of a wider debate.”
A spokesperson for OSCR said: “We have now concluded our inquiries and after contacting the charity and reviewing all the relevant information, we have not identified any matters of a regulatory nature where we consider it would be proportionate or in the public interest for us to take further action.”
