Disaster appeal cash was not distributed five years later

13 Oct 2011 News

The Charity Commission has today published the regulatory case report into fundraising appeals set up by two radio stations, where the money raised was still not spent five years down the line.

The Charity Commission has today published the regulatory case report into fundraising appeals set up by two radio stations, where the money raised was still not spent five years down the line.

Appeals were set up by Sunrise Radio and Kismat Radio for the South East Asia tsunami in 2004 and Pakistan earthquake in 2005 and in 2010 the Commission received a complaint that the funds had not been distributed.

Together the appeals raised more than £160,000 but by November 2010 the money had not been distributed to any charity. The money has now been awarded to two registered charities working in the affected areas.

Although neither radio station is a charity the Commission decided to investigate and ensure the money was distributed because money was raised for charitable purposes and therefore came under the Commission’s jurisdiction as the regulator.

The Commission said it was important for organisations to consider if they are capable of delivering the services and suggested that raising money on behalf of a charity, “whose purpose is to provide emergency relief or has more operational experience in the country/areas affected”, might be more appropriate than setting up a separate fund.

It concluded that “the trustees did not act appropriately in respect of the long-term retention of funds raised”, and that “trustees were under a duty to apply these funds within a reasonable period".