10 Sep 2015
Kids Company reported a deficit in its free reserves in six of the past ten years despite receiving more than £90m in unrestricted income over the last decade - almost 80 per cent of all funding.
Kids Company has suffered further media criticism after it was revealed that the charity paid the London School of Economics almost £40,000 for a glowing report about the impact of its work.
The band Coldplay, which has donated around £8m to Kids Company over the years, is in talks with other philanthropists to save the charity's Treehouse Centre.
Kids Company is expected to announce the closure of its services at the end of today and the Cabinet Office is reported to be seeking to recover a £3m restructuring grant it awarded the charity last month.
A giant of the charity sector, but an even greater friend. I am truly devastated that Dave is no longer with us.
The Charity Commission has opened a statutory inquiry into Kids Company, which collapsed last week, and the High Court has appointed the Insolvency Service as the liquidator.
Kids Company received enough unrestricted income that it could have built up sufficient reserves to see it through the crisis that led to its collapse. Kirsty Weakley asks why it did not.
Charity Finance Group chief executive Caron Bradshaw examines what the closure of Kids Company means to the charity sector.