BusinessBusiness RecoveryReceivers take charge at breast cancer charity

Receivers take charge at breast cancer charity

The Charity Commission on Friday instructed solicitors to enter the Manchester premises of Breast Cancer Relief to take control of the charity's multimillion-pound funds.

Link: CA to oversee regulation at Charity Commission

The commission has appointed Graham Briggs of Addleshaw Goddard Solicitors in Leeds as receiver and manager of Breast Cancer Relief due to concerns about serious mismanagement.

The commission has frozen over a million pounds in the charity’s bank account. Briggs will temporarily take over the running of the charity in a bid to protect money given to help people with breast cancer.

The raid results from a formal inquiry into the charity, opened in December 2002, because of a complaint about the charity’s fundraising methods.

The charity watchdog has found evidence suggesting that less than 10% of the income received by the charity has been spent on its charitable work. ‘Most of the balance appears to have been used to pay fundraising costs,’ it stated.

Breast Cancer Relief has contracted Solutions RMC, a fundraising company, to deliver these services on its behalf. The receiver and manager will examine the charity’s records and assess whether the charity retains an appropriate amount out of income received.

David Rich, head of investigations at the charity commission, hopes to get Breast Cancer Relief back on track as soon as possible. ‘This charity grew from humble beginnings to a multimillion pound operation relatively quickly,’ he said.

‘The trustees should have played a more active role in the administration of the charity and recognised it needed to be run like a business of the same size. This charity is not alone: from our experience, rapid expansion can be a source of problems.’

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