The Charity Commission, the independent regulator of charities in England and Wales, has opened a statutory inquiry into The Cradle Child Trust, registered charity number 1139003. The inquiry was opened on 19 January 2015.
The charity has objects to relieve the suffering of disabled children in impoverished areas of Nepal, Bhutan and the Philippines through providing physical and mental health aid to improve their quality of life.
The regulator is investigating concerns raised by a member of the public about the charity’s involvement in fundraising activities and possible impropriety by the charity’s trustees in connection with funds being raised.
The inquiry will examine a number of issues which are of serious regulatory concern to the commission relating to the administration and financial management of the charity by its trustees. These include:
potential unauthorised trustee remuneration
failure to keep sufficient accounting records
inability to fully account for charitable expenditure
failure to submit annual returns to the commission
allegations that charity funds may have been mismanaged by the trustees
The scope of the investigation into the charity will examine whether the trustees exercised reasonable care in the administration of the charity, the financial management of the charity and whether there has been any misconduct and/or mismanagement by the trustees. It will also consider whether remedial regulatory action is necessary.
The commission stresses that opening an inquiry is not in itself a finding of wrongdoing. The purpose of an inquiry to examine issues in detail and investigate and establish the facts so that the regulator can ascertain whether there has been misconduct and mismanagement; establish the extent of the risk to the charity’s property, beneficiaries or work; decide what action needs to be taken to resolve the serious concerns, if necessary using its legal powers to do so.
It is the commission’s policy, after it has concluded an inquiry, to publish a report detailing what issues the inquiry looked at, what actions were undertaken as part of the inquiry and what the outcomes were. Reports of previous inquiries by the commission are available on GOV.UK.
The charity’s details can be viewed on the commission’s online charity search tool.
Notes to editors
The Charity Commission is the independent regulator of charities in England and Wales.
- Our mission is to be the independent registrar and regulator of charities in England and Wales, acting in the public’s interest, to ensure that:
* charities know what they have to do
* the public know what charities do
* charities are held to account
- Section 46 of the Charities Act 2011 gives the Charity Commission the power to institute inquiries. The opening of an inquiry gives the commission access to a range of protective and remedial powers.
- The commission’s decision to announce the opening of a statutory inquiry is based on whether it is in the public interest to do so and with consideration of our objective to increase public trust and confidence in charities.