Charity Commission report finds ‘mismanagement in administration’ and running of ‘high-risk business model’
The board of the children’s charity Kids Company founded by Camila Batmanghelidjh has been criticised by the charities watchdog for failing to properly oversee the charity – a year after she and her trustees were comprehensively exonerated of mismanagement by the high court.
The long-awaited Charity Commission report made a formal finding of “mismanagement in the administration of the charity” and of operating a “high-risk business model”. It raised questions whether thousands of pounds spent by the charity on a small group of high-risk child clients was justified.
The charity operated a high-risk business model, over-expanded its operations too rapidly, failed to strengthen its cashflow and failed to pay creditors and HMRC on time. It said the board was skilled but lacked specialist expertise in the field of psychotherapy.
There was insufficient evidence to be sure that the charity’s expenditure of an average of £1,700 a month on a group of 25 high-needs children was justified. The trustees had the right to make these decisions, it said, but argued it could have helped more children had it reduced this spending.
The charity’s reporting of the numbers of children who received its services could have been more transparent, it said. But it reported no evidence to back up allegations, made by an MPs’ committee, that Kids Company had overinflated its claim that it served 36,000 beneficiaries.
