A Wolverhampton charity whose telesales staff misled donors about how much of their money would got to help children has been wound up in court.
Needy Children International Foundation, based in Wolverhampton but with activities in Manchester, was the subject of an investigation by The Insolvency Service on behalf of the Government.
The probe found that the script used by telesales staff didn’t explain the levels of commission paid to staff or that only a very low proportion of donations would be given to charity.
Just 9 – 22 pence in every pound donated went to charitable purposes and the rest was used to pay for overheads and commissions earned by telesales staff and drivers who collected the donations.
Insolvency Service investigation supervisor Scott Crighton said: “This company’s fundraising methods were typical of a number of other companies that have previously been active in the same area of Manchester which have also been wound up in the public interest for failing to show transparency in their fundraising activity.
“By failing to tell potential donors exactly how much of their donation would go to charity, they were in breach of the Charities Act.
“As a result Needy Children International Limited has been wound up in the public interest by The Insolvency Service.”
“Any charity fundraising company that deceives the public with its sales tactics should be aware that The Insolvency Service can and will investigate, and where appropriate, take action to remove them from the business environment.
“Anyone who has been affected by the trading practices of this or similar companies can report them to our Public Interest team on 0161 234 8531.”