Share

Kids Company could close without more government funding

Camilla Batmanghelidjh
News

Kids Company could close without more government funding1

Governance | Alice Sharman | 22 Sep 2014

The chief executive of the children’s charity Kids Company has said that it is at risk of closure unless it receives “proper government funding”.

Camila Batmanghelidjh (pictured) told The Sunday Times that she can only sustain the charity until the end of the year, as its government funding of £4.5m runs out in March. The charity supports 36,000 vulnerable children and young people with practical, emotional and educational support.

A spokeswoman told Civil Society News this morning that Kids Company raises 80 to 100 per cent of its income through charitable donations.

She said: "This revenue has been used to support maltreated children who should have been supported by the State.  We are not a civilised society if our government cannot look after children who are being neglected and abused.  We want the government to honour their social contract to protect the most vulnerable."

The charity has received support from celebrities including author J K Rowling and comedian Michael McIntyre. Batmanghelidjh said that last month she had to ask the band Coldplay for an advance on its annual gift of £1.3m in order to pay the charity’s bills.

Batmanghelidjh told the Sunday Times: “I have to raise almost £2m a month and everybody I could beg from during the summer was away on holiday. We had queues of children who in term time get free school meals waiting to be fed, and we had to pay for therapists accompanying our children on activity holidays.”

She said that the government needs to wake up to child protection, which she describes as its “Achilles’ heel”.

Batmanghelidjh added that she is frustrated that she has to “beg on behalf of society” for funding to deal with problems that should be paid for from the public purse, and that there is no more money that she can raise from philanthropists.

The spokeswoman for the charity said that it needs about £23m a year to run. It currently receives £4.5m from the government and £3m of support from celebrities and businesses, meaning that the charity needs another £16m a year to continue to remain functional. She said that currently every month is a struggle for the charity to support the 36,000 children who are not supported by the government.

In the charity’s accounts for the year ending December 2012, it showed that the charity received £4.8m from central government, suggesting that the funding received from government dropped by £300,000 in 2013.

The accounts also say that despite receiving significant grants, the charity continues to grow very fast in order to meet needs, and has low reserves relative to its size as “new contracts do not allow for the retention of funds as reserves”. In 2012, it held £272,547 in reserves.

It continues: “The charity’s history of delivering the maximum possible charitable objectives with the resources available have often put a strain on the charity’s cash flow. The trustees are confident sufficient funding will be secured and are monitoring the situation.”

In the year 2012, the charity, which now employs 563 staff, had income of £20m, up from £15.6m the previous year. That year it spent £18.9m, of which £17.6m was spent on charitable activities.

Geoff Baker
Executive Director
UKAID
25 Sep 2014

Time for Kids Company to get itself a top fundraiser instead of whinging about shortage of cash. It's not the government's responsibility to keep Kids Company afloat. It also seems to me a vibrant accountant is needed to deal with the worrying and negative approach to its reserves. It's obvious from just a cursory look at its accounts Kids Company is overspending. Time to cut back or get a pro active fundraiser.

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

HMRC assures charities of ‘soft landing’ approach in Common Reporting Standard guidance

26 Aug 2016

HMRC has published new Common Reporting Standard guidance, which assures charities that it will implement...

Access Foundation to invest endowment in social investment

24 Aug 2016

Access: the Foundation for Social Investment has announced it will put its endowment from the Cabinet...

Charity investigated after it did not know its own income

23 Aug 2016

The Charity Commission has opened an inquiry into a charity that underestimated its own annual income...

Save the Children launches £1m fundraising appeal for search and rescue boat

26 Aug 2016

Save the Children UK has launched a £1m fundraising appeal to outfit and support a search and rescue...

Royal British Legion criticised by FRSB after fundraisers misled public

25 Aug 2016

The Royal British Legion and a face-to-face fundraising agency breached the Code of Fundraising Practice,...

Pell & Bales goes into liquidation with the loss of more than 100 jobs

24 Aug 2016

Telephone fundraising agency Pell & Bales has been placed into liquidation by its creditors, less...

Free HR system to launch for charities

25 Aug 2016

A free human resources system designed for charities will launch next month and is currently being trialled...

RSPCA ranked fourth in global charity social media brand index

19 Aug 2016

A new social media index has said that the RSPCA has the fourth best digital charity brand globally, with...

Charity Commission retracts story which indicated it would no longer publish all accounts

18 Aug 2016

The Charity Commission has published a news story announcing it will no longer display documents received...

Join the discussion

Twitter
 
Training

Attending our one day courses is a highly effective way of ensuring new and existing trustees fully understand their role, responsibilities and liabilities.

>> Find out more <<