Naomi Campbell among trustees disqualified after serious mismanagement at charity
Melanie May | 27 September 2024 | News
Multiple instances of misconduct and mismanagement at charity Fashion for Relief, which included thousands being spent on high cost expenses, has resulted in it being removed from the register of charities, and three people being disqualified from trusteeship.
The Charity Commission disqualified Bianka Hellmich for nine years, Naomi Campbell for five years and Veronica Chou for four years. It has also recovered over £344,000 and protected a further £98,000 of charitable funds, which were used to make donations to two other charities and settle the charity’s outstanding liabilities.
Fashion for Relief was set up for the purpose of poverty relief and advancing health and education by making grants to charities or other organisations and by giving resources directly to those affected.
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Thousands spent on expenses
However, the Charity Commission’s inquiry found that between April 2016 and July 2022, only 8.5% of the charity’s overall expenditure went on charitable grants. There was no evidence that trustees had reviewed the charity’s operating model to ensure fundraising methods were in the charity’s best interest and that costs were reasonable relative to income generated. The inquiry also found that thousands went on flights, accommodation and other ‘expenses’ including spa treatments, room service, and the purchase of cigarettes and hotel products, and unauthorised payments for consultancy services totalling £290,000 had been made to Hellmich.
Delays in funds reaching charity partners
Charity partnerships were also mismanaged with delays in funds raised from events reaching the Save the Children Fund and the Mayor’s Fund for London. This led to interim managers appointed by the Commission making payments to these two charities before the charity was wound-up.
Additionally, the charity’s funds were found to be held and applied on its behalf by external professional advisors (solicitors and accountants) rather than in a dedicated bank account in the charity’s name. After the Commission investigated transactions made under this arrangement, £54,000 was recovered to the charity from one professional advisory firm. These transactions were not identified or challenged by the trustees at the time.
The full report can be found here.
Charity Commission Deputy Director for Specialist Investigations and Standards, Tim Hopkins, said:
“Trustees are legally required to make decisions that are in their charity’s best interests and to comply with their legal duties and responsibilities. Our inquiry has found that the trustees of this charity failed to do so, which has resulted in our action to disqualify them.
“This inquiry, and the work of the interim managers we appointed to run the charity in place of the trustees, has resulted in the recovery of £344,000 and protection of a further £98,000 charitable funds. I am pleased that the inquiry has seen donations made to other charities which this charity has previously supported.”
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.