# Charity Commission report underlines need for trustees to control fundraising

- Link: https://fundraising.co.uk/2012/01/12/charity-commission-report-underlines-need-trustees-control-fundraising/
- Published: 2012-01-12T14:30:30+00:00
- Author: Howard Lake

The Charity Commission’s report on its inquiry into the Needy Children International
Foundation has underlined the need for “trustees to manage and control fundraising
effectively, efficiently and economically”.

The charity, which has since been closed, was, according to the Commission, “connected
to a number of individuals previously involved in improper fundraising activities”.
Only a small proportion of its funds were being spent on charitable activity, so
potential donors were being misled about how their money would be spent. The Commission’s
inquiry concluded that “trustees had not taken sufficient steps to protect the charity’s
funds or its reputation”.

In particular it found that they had “not taken appropriate steps to ensure the 
individuals employed by both the charity and its trading subsidiary were fit and
proper persons to take responsibility of the charity’s funds”. The Commission also
ruled that trustees had also failed to ensure the trading subsidiary observed its
legal requirements when fundraising on behalf of the charity.

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Although the charity did take some remedial actions including terminating its relationship
with the two individuals previously involved in its fundraising operation, and discontinuing
its clothing collections, the Commission had also referred its concerns regarding
the charity’s fundraising activities to the Insolvency Service. Following the latter’s
investigation, the charity was wound up on 23 May 2011.

The Commission’s report includes eight issues of wider concern arising from the 
investigation for the charity sector.

www.charitycommission.gov.uk/Our_regulatory_activity/Compliance_reports/inquiry_reports/
needy_children.aspx

 * **[Charity Commission website](https://fundraising.co.uk/2012/02/07/charity-commission-website-790/)**(
   7 February 2012)
 * **[Charity Commission website automated responses](https://fundraising.co.uk/2012/05/21/charity-commission-website-automated-responses/)**(
   21 May 2012)
 * **[Public still trust charities but concerned over some methods, says survey](https://fundraising.co.uk/2012/07/04/public-still-trust-charities-concerned-over-some-methods-says-survey/)**(
   4 July 2012)