An anti-poverty charity that was stripped of its charitable status by the Charity Commission in August after the regulator deemed there was "little or no evidence of charitable activity" has been reinstated to the register of charities.
London-based Painted Children, which in 2010 was the first charity adjudged by the Fundraising Standards Board to have broken the Code of Fundraising Practice, was removed from the register of charities on 29 August because it "ceased to be charitable", the commission said.
A spokeswoman for the regulator said at the time that the removal came after an operational monitoring case "concluded that there was little or no evidence of charitable activity and that the organisation was operating as a commercial fundraising business, rather than a charity". The regulator found the majority of money it had raised in the past two years was spent on staff and accommodation costs.
The charity appealed to the charity tribunal against the commission’s decision to remove it from the register.
The appeal was lodged by Mohammod Nazinur Rahim, one of its trustees, on 10 October, but before it could be heard, the commission reinstated the charity.
A commission spokeswoman said yesterday: "We have reviewed the decision and reinstated the charity to the register."
But she said that the commission continued to have "serious concerns about the charity’s management and activities and have therefore reopened our operational monitoring case into the charity".
Painted Children, which registered with the commission in April 2009, has objects of relieving sickness and poverty, preserving health and advancing education for children and young mothers in Bangladesh, the Maldives, Nepal and the UK.
Accounts filed by the charity for the years ending 2011/12 and 2012/13 show that three-quarters of its total expenditure of £265,119 over the two years went on charitable activities.
The charity’s entry on the online register of charities does not show that it was de-registered in August before being re-registered. The commission spokeswoman did not say why this information was missing.
It is understood that the charity will withdraw its tribunal appeal, rather than continue it in order to challenge the legal basis on which the now-reversed decision was made.