Insolvency Service winds up charity
Needy Children International Foundation, a charity with offices in Wolverhampton and Manchester, has been wound up in the High Court following an investigation by the Insolvency Service.
On 11 February 2011, business secretary Vince Cable obtained an injunction against the company in the High Court preventing it from raising more funds, because of concerns that its telesales staff were using a misleading script to raise public donations.
The investigation established the script used by telesales staff to raise donations failed to explain to donors the levels of commission paid to staff or that only a very low proportion of their donation would be given to charity. Only 9 to 22 pence in every £1 donated went to charitable purposes.
The Insolvency Service said the balance of funding was used to pay for overheads and commissions earned by telesales staff and drivers who collected the donations.
Insolvency Service investigation supervisor Scott Crighton said: "This company’s fundraising methods were typical of a number of other companies that have previously been active in the same area of Manchester which have also been wound up in the public interest for failing to show transparency in their fundraising activity."
