Charity Commission opens inquiry into charity that spent most of its income on fundraising

The children's charity the Cradle Child Trust had an income of £29,531 in the year to January 2014, and spent £24,531 - 88 per cent of expenditure - on fundraising

Regulator opened statutory inquiry
Regulator opened statutory inquiry

The Charity Commission has opened a statutory inquiry into an international children’s charity that spent nearly 90 per cent of its money on fundraising activities last year.

The commission opened its statutory inquiry into the Cradle Child Trust, which has objects of helping disabled children in Bhutan, Nepal and the Philippines, on 19 January.

A statement from the regulator today said it was "investigating concerns raised by a member of the public about the charity’s involvement in fundraising activities and possible impropriety by the charity’s trustees in connection with funds being raised".

The inquiry will examine concerns including potential unauthorised trustee remuneration, failure to keep sufficient accounting records and allegations that charity funds were mismanaged by the trustees.

The charity’s accounts for the year to 31 January 2014 show an income – made up entirely of grants and donations – of £29,531. The charity’s expenditure in the year was £27,782, of which £24,531 – or 88 per cent of total expenditure – went on fundraising costs. A further £3,251 was spent on charitable activities, the accounts show.

The same accounts show that in the year to 31 January 2013 it spent £6,496 of a total expenditure of £16,063 on fundraising costs.

Nobody answered calls from Third Sector to the phone number listed for the charity on the Charity Commission’s register.

The Cradle Child Trust is based in east London and registered with the commission in November 2010.

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