A charity that raised millions of pounds a year gave only a fraction to charitable causes, according to a Charity Commission inquiry report published today.
The Cancer Care Foundation, set up in 1995, raised £13.5m in 2002 but gave just £140,000 to charity. It was first investigated by the commission in 1998, which concluded that it should increase the amount of income that went to charitable causes rather than to fundraising.
Instead, the charity went on to acquire or create a number of subsidiaries, including a fundraising company, Caring Together Limited, the latest report says.
The commission opened a second inquiry into the charity in 2002, the year when its income peaked at £13.5m, and appointed interim managers from PwC in 2003.
Its inquiry found extensive evidence that the charity had not spent enough on charitable activities and that trustees had profited from their association with the charity.
The report says Brian Taylor, the chief executive and former director of the charity, had been paid £48,000 for activities that the interim directors said could be completed in half a day, and was also entitled to free use of a Jaguar Sovereign XJ, owned by the charity but kept at his home address. Other trustees and their families also enjoyed generous benefits.
The charity also named a number of children’s hospices in its fundraising material, but had not made any donations to them.
No police involvement is mentioned in the report and it does not say how much the trustees had gained from the charity.
Taylor and Patricia Cole, another of the directors, had moved abroad at the time of the inquiry, although the interim managers were able to recover £7,000 from Cole’s husband.
The report says the interim managers launched court proceedings against Fundraising Initiatives Limited, a company that carried out fundraising activities on behalf of Caring Together Limited, and which was owned by the managing director of CTL, Catherine Bauso, and her husband Kenneth.
The case was settled out of court for an undisclosed sum.
In 2009, new trustees were appointed, and under their stewardship the charity has donated £3.56m to hospices and other charities in line with its charitable objects.