The charity founded by the model Naomi Campbell gave out £200,000 in grants last year and spent £1.6m on raising funds, according to its latest accounts.
The charity’s latest accounts, which cover the year to 31 July 2020 and were filed with the Charity Commission 235 days late, show the grant-making charity spent more than £1.6m on raising funds, including £1.1m on “event charges”.
The accounts also show a total income of £1.8m in the year to the end of July 2020, with £200,600 of this used to give grants.
The bulk of the charity’s income for that year came from charitable activities – which, according to the accounts, consisted of hosting events “around the world to raise awareness and funds for the causes”.
The accounts go on to say: “By hosting events, such as fashion shows, the media interest and guests create a higher level of awareness for the supporting charities and therefore it is hoped can highlight their message in a way that does not solely focus on the donations they receive.”
An additional £82,000 came from donations and legacies, and £303 from investments, according to the documents.
One of the charity’s three trustees also received £106,572 in consultancy fees, the report said.
Founded in 2005, Fashion For Relief aims to raise funds to improve the lives of people living in poverty and facing adversity around the world.
The commission’s inquiry restricts the charity’s trustees from making certain financial transactions, which the regulator said was in order to protect the charity’s property.
The inquiry follows a compliance case opened in September 2020, which found that the charity had consistently filed late accounts and failed to provide proof that conflicts of interests were being managed.
This led to the regulator issuing trustees with an action plan in March last year, with the aim of improving the charity’s financial management.
Fashion For Relief has filed its accounts on time only once in the past five years. Last year it said that auditors and the Covid-19 pandemic were the reason for its accounts being delayed.
Following a review of the charity’s response to the action plan, the regulator said it had identified “further concerns in the charity’s financial management and governance”.
The commission then escalated its case into a statutory inquiry, which would also look at whether those in control of the charity had properly exercised their legal duties and responsibilities under charity law.
The inquiry will examine the charity’s financial management, including payments made to a trustee for services provided to the charity, and the level of charitable expenditure, alongside how trustees are governing the charity.
It will also look into whether there has been misconduct and/or mismanagement by those in control of the charity.
The regulator said it may extend the scope of the inquiry if additional regulatory issues emerge.