Fundraising company that misled donors wound up in the High Court

Needy Children International Foundation staff failed to disclose that only a small proportion of money raised went to charities

High Court
High Court

A fundraising company has been wound up in the High Court after passing on only a small proportion of the money it raised to charities.

Needy Children International Foundation, which had offices in Wolverhampton and Manchester, was wound up last week for breaching section 60 of the Charities Act by failing to tell donors how much of their money would go to charity.

An Insolvency Service investigation found the company paid only between 9p and 22p of each pound raised to good causes. The rest of the money was used to pay staff.

The Department for Business, Innovation and Skills obtained an injunction against the company in February that prevented it from raising more funds because of concerns that its staff were using a "misleading script" to raise public donations.

Scott Crighton, investigation supervisor at the Insolvency Service, said the charity was the latest of a number in the Manchester area to have been wound up after "failing to show transparency in their fundraising activity".

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