Financial Negligence of Charities’ Trustees

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2016 Community Service Group Conference
19 February 2016

Conference notes the report of the Commons Public Administration and Constitutional Affairs Committee into the collapse of the Kids’ Company charity. Criticism was singled out for the charity’s trustees and the Charity Commission. According to the report the valuable work of this charity, along with its “inspired and motivated employees” was let down by the trustee board’s financial negligence. The report also said of the Charity Commission; it “projects too limited a public profile to provide much reassurance about charities and their regulation, and to attract complaints”.

Conference also notes that in London ‘Eaves Housing For Women’, ‘Kids Company’ and the ‘British Association of Adoption and Fostering’ have all gone into administration with mass redundancies of UNISON Community Sector members and little or no consultation with staff or elected UNISON staff representatives. UNISON is pursuing tribunal claims on behalf of community sector members who worked for all three organisations.

Conference calls on the Community Service Group Executive to:

1) Campaign to ensure Charities are transparent about their finances and take management of financial risk seriously in order to safeguard jobs and the important work that they do.

2. Produce guidance for Community Sector UNISON representatives who fear their charity might be having significant financial problems.

3. Approach the Charity Commission and Community Sector employers’ organisations to promote early consultation with staff and trade unions beyond the legal minimum timescales.