Brainpalsy.com - Helping Parents Combat Cerebral Palsy

1. This is a declaration of the results of an investigation under Section 8 of the Charities Act 1993.

2. Cerebral Palsy Children’s Charity ( “Charity”) was established and registered as a non-formed nonprofit in June 1991. Its aim is to liberate children in the UK suffering from cerebral palsy and other conditions to assist in the provision of conductive education.

3. The Charity operates on its premises, known as The Yorkshire conductive education centre (EUMC), based in Clifford, Yorkshire. The Centre was inaugurated in April 1999 and has been used for the provision of drivers education for children, drawing on driver training. The Charity of gross income for the year ended December 31, 2003 was approximately 42,500 pounds sterling, compared with approximately 115500 pounds for the year ended December 31, 2000.
Questions

4. In January 2004 the Commission received a complaint from a member of the public about an aggressive and abusive telephone calls allegedly made by a person claiming to represent Charity, requesting payment of advertising in a publication nonprofit. The complainant also said that he had not obtained what he would have considered a satisfactory response of Charity when he contacted Charity on this matter.

5. Companies that engage in promotional activity offering for sale of advertising space in magazines, newspapers, wall planners, etc. are classified as commercial participators (as defined in Part II of the Act and Charitable Action 1992). They must meet certain requirements under that law and charities (Fundraising) Regulation 1994. One requirement is that there must be an agreement, in a prescribed manner, between charity and commercial participant. Best practice dictates that it is inappropriate for the telesales staff to take aggressive selling techniques.

6. On a previous occasion, following a complaint to the Commission a member of the public, the trustees concluded a commercial contract with one participant as a result of the search for the Commission not meet the legal requirements prescribed.

7. After conducting preliminary investigations at the Charity of the business relationship with participators, following the complaint later, the Commission decided to open an investigation in June 2004 to investigate the matter.

8. As the trustees of Charity are in breach of its legal obligation to submit to the Charity Commission of Accounts and the annual return for the year ended December 31, 2002, the scope of the investigation was broadened to examine Charity the administration and activities in general. During the investigation of Charity and the latest annual accounts back became cause and Charity did not submit them as well.
Aprecian

9. From Charity moved to its current premises considerable improvements to the premises and facilities were conducted at the instigation trust. However, during 2002 and 2003 Charity increasingly suffered from insufficient funding to meet day to day expenses and difficulties in recruitment and retention of suitably qualified key personnel. As a result, in March 2004, the Centre was closed.

10. The Charity also had sufficient funds to meet the cost of outstanding accounts prepared and audited, as required by the Charity’s governing document. Failure to submit to the Audit Commission and related documents are detrimental to the Charity of calls to potential financiers.

11. On several occasions during 2002 and 2003 Charity had trade relations with three companies participating. None of these relations was formally structured in the interests of Charity, in accordance with the prescribed legal requirements and best practices. For example, either in writing has not been implemented or, if so, that did not meet those requirements. The Commission is convinced that none of those relationships still exist.

12. The trustees do not maintain a formal minute of books, as required by the Charity’s governing document. The Commission sees no record of trustees to meetings due to the fact that computers held copies were inaccessible due to malfunctioning of the computer.

13. The trustees accepted that there were deficiencies in the Charity of record keeping. For example, the records were incomplete (and audit trails) identification of the use of cash withdrawals of Charity of the bank account. There was also a lack of documentation relating to the promotion of short-term loans to the charity of some of the trustees, which aimed to strengthen the finances of Charity, while third-party financing is difficult to obtain.

14. Since February 1994, the wife of one of the trustees has been employed as the director of Charity. However, I was so busy over a year before her husband became a trustee and the Commission was assured that he has never participated in any trustees’ or any other meeting at which their pay what they have been discussion.
Survey Results

15. The Charity Commission received accounts and annual returns for two years ending December 31, 2003. After having submitted the documents with the Commission, the trustees hope to obtain sufficient funds for Charity to resume activities during 2005.

16. In December 2004 additional trustees were appointed. The Commission understands that these individuals were selected on the basis that each has skills that individuals should contribute to better administration of Charity, for example, is a lawyer.

17. The trustees are committed to going to introduce improved procedures relating to the administration of Charity and financial controls. For example, the record will be meetings and procedures to maintain the full and unambiguous audit relating to the Charity of revenue and expenditure will be introduced.

18. The survey was closed on April 26, 2005.
Great experience

19. Charities must take seriously their responsibilities to comply with the requirements for submission of Annual Accounts and Returns to the Commission. Transparency and accountability helps to bolster public confidence in charities and allows donors and supporters to see how donated funds and funds are being used.

20. Those who act in the administration of a charity must be familiar with the terms of the document that governs and ensure that their conditions are met.

21. It is the fundamental duty of all charity trustees to protect the property of their charity and to ensure its implementation for the objects of charity. To fulfil this duty is essential to have adequate procedures internal financial and administrative controls on the charity’s assets and their use.

22. Trustees have a responsibility to ensure that the reputation of their charity and the charity sector fails to report at discrediting the activities of charity or any fundraising on his behalf. A charity’s reputation is a valuable asset and its trustees have a duty to protect it. It is important that the charity trustees must have the means to check the performance of collectors, commercial and other participators using the name of charity. It can be very difficult to repair damage to a charity’s good name.

23. In addition to minimum legal requirements and in the interest of best practices of trustees, the Commission has identified in his report regulatory Charities and Trade Partners (RS2) a number of areas to be covered in a trading partner agreement. This is available on the website of the Commission.