The Children's Society's subsequent
advertising
35. Nearly seven weeks after the decision was taken
to withdraw from Wales, recruitment advertisements appeared in
the Welsh press for fundraisers for the Children's Society.[75]
The Chief Executive explained that the advertisement had been
placed in a Liverpool paper by the Personal Fundraising Partnership
(PFP), an independent fundraising agency, and had been "lifted"
by the newspaper's sister publication in North Wales.[76]
This had been done without the knowledge or consent of PFP or
the Society. We were assured that the Society had stopped recruiting
in Wales except, as the Director of Finance and Administration
explained, where it was necessary to fill a vacancy in order to
secure safe practice.[77]
36. On 14 January 2002 an advertisement appeared
in The Guardian for several marketing communications, media
and fundraising posts with the Society. The main body of the advertisement
began with the words "Each year, over 10,000 young people
are locked up in England and Wales. Around 1 in 10 inflict injuries
on themselves while in custody. Most disturbingly, from 1996 to
1999, 24 of them killed themselves. Here at The Children's Society,
it's our goal to develop the long-term solutions that eradicate
statistics like these ... before we can help vulnerable kids like
these up and down the country, their stories need to be heard".[78]
We do not believe that there was any intention to mislead by the
wording of the advertisement, but it clearly gives the impression
that the Society works in both England and Wales. Despite the
publicity which has surrounded the decision to withdraw from Wales,
it is reasonable to assume that many people will continue to believe
that the Society, which has worked in Wales for 113 years, will
continue to be active in that country. People in Wales who wish
to support a children's charity must not be given the false impression
that, by donating to the Children's Society, they will be supporting
continuing work with children locally in Wales. The Children's
Society must therefore take pains to ensure that neither the content
nor the placement of any of its advertising, or of any other publicity
or public statements issued by or on behalf of the Society, gives
the false impression that it will continue to work in Wales.
The role of the Charity Commission
37. Under section 8(1) of the Charities Act 1993
("the 1993 Act"), the Charity Commissioners "may
from time to time institute inquiries with regard to charities
or a particular charity or class of charities, either generally
or for a particular purpose".[79]
The Charity Commission has an evaluation procedure whereby it
will consider each application for an investigation on its merits.
Section 18 of the 1993 Act goes on to provide the measures that
the Commission can take where the Commissioners are satisfied
that:
(a) there is or has been
any misconduct or mismanagement in the administration of the charity;
or
(b) that it is necessary
or desirable to act for the purpose of protecting the property
of the charity or securing a proper application for the purposes
of the charity or of property coming to the charity.
Generally it allows for the replacement of a trustee,
officer, agent or employee of the charity and also the transfer
of property to an official custodian. The Commission can not reverse
a decision taken by the trustees of the charity.[80]
38. There are a number of aspects of this case which
we believe might merit an investigation by the Charity Commission:
(a) at the very least,
it seems that the Society's financial forecasting in the years
prior to the decision was seriously flawed; at worst, the fundraising
operation was hopelessly mismanagedthe resulting programme
of expenditure, based on over-optimistic forecasts of growth in
voluntary income, played a large part in the Society's current
financial difficulties;
(b) the decision itself
is so self-evidently perverse and the Society is unable to offer
any justification for it beyond vague and insubstantial suggestions
that it is "the only option" and that the Society's
operations would become unstable if operations in Wales were kept
open;
(c) although the decision
does not appear to be outwith the purposes of the Charity set
out in its governing document,[81]
it is clearly contrary to other, established policies of the Society
such as the Welsh Language Scheme, as well as more recent policies
such as the establishment of the Welsh Advisory Committee;
(d) there was no consultation
of any kind either within or outside the Society prior to the
decision being taken;
(e) Trustees were invited
to take the decision on the basis of inaccurate and incomplete
information;
(f) there is still a
question mark over the amount of the Society's reserves which
will be made available to a successor body or bodiesit
is vital that a fair settlement is reached in this matter and
that money which was raised in Wales, or which has hitherto been
allocated for use in Wales, is passed on to a successor body in
Wales.
We will send a copy of this Report to the Charity
Commission so that they may consider what action, if any, it would
be appropriate for them to take in view of our findings.
1 The Church of England Children's Society, Registered
Charity No. 221124. Back
2
Children's Society to Close Work in Wales, Children's Society
Press Notice dated 6 November 2001. Back
3
It is printed in this Volume with the Minutes of Evidence at pp.
1-5. Back
4
Ev 1. Back
5
Q 16. Back
6
QQ 17-21. Back
7
Q 22. Back
8
Ev 1. Back
9
Ibid. Back
10
QQ 38-42. Back
11
Ev 2. Back
12
Ev 2. Back
13
Children's Society to Close Work in Wales, Children's Society
Press Notice dated 6 November 2001. See also Q 82. Back
14
Q 83. Back
15
Q 73. Back
16
Q 85. Back
17
Official Report, 12 December 2001, col. 308WH. Back
18
This quote is taken from an e-mail briefing circulated to Welsh
MPs by the Children's Society shortly before the Committee's meeting
(not printed). Back
19
Q 88. Back
20
Q 89. Back
21
Q 92. Back
22
Q 232. Back
23
Q 233. Back
24
See Pathway to Prosperity: A New Economic Agenda for Wales,
National Assembly for Wales, 1999, paragraph 3.2. Wales's GDP
per capita in 1996 was £8,899: 82 per cent of the UK average.
Northern Ireland is ranked 12th with a GDP per capita of £8,700. Back
25
Ev 2. Back
26
QQ 92 & 231. Back
27
Q 236. Back
28
Ev 34 (Appendix 2). Back
29
Cynllun Yr Iath Gymraeg/Welsh Language Scheme, The Children's
Society, 29 July 1999. See Ev. pp. 35-7 Back
30
Ibid, section 1.3 (Ev 36). Back
31
See, for example, Q 231. Back
32
Letter from the Most Revd Dr Rowan Williams to Ian Sparks, dated
12 October 2001 (not printed). See paragraph 18, below. Back
33
Q 146. Back
34
Ev 2. Back
35
Ibid. Back
36
Official Report, 12 December 2001, col. 303WH. Back
37
Ev 34 (Appendix 2). Back
38
QQ 54-60. Back
39
Q 71. Back
40
Ev 2. Back
41
Letter from the Most Revd Dr Rowan Williams to Ian Sparks, dated
12 October 2001 (not printed). Back
42
Ev 34 (Appendix 1). See also QQ 96-98. Back
43
Q 103. Back
44
QQ 61-63. Back
45
Q 62. Back
46
Q 66. Back
47
Ian Sparks, Viewpoint: Passing the Baton, not Jumping Ship, Community
Care, 6-12 December 2001, p. 21. Back
48
QQ 62-69. Back
49
Q 73. Back
50
Ev 38. Back
51
Ibid. Back
52
TCS Presence in Wales: A Report on SMT & Council on the
implications for the Society of the impact of the National Assembly
for Wales, February 2001, paragraph 7.5. Back
53
Ibid, paras. 7.12-7.17. Back
54
QQ 71-73. Back
55
The Children's Society Report & Financial Statement 00:01,
July 2001, p. 6. See also Ev 37. Back
56
Ibid, p. 10. Back
57
Ev 38. Back
58
QQ 37, 42, 73, 104, 105 & 136-139. Back
59
Q 82. Back
60
Q 88. Back
61
For example, in the Press Notice announcing the decision (see
paragraph 1). Back
62
Q 75. Back
63
Q 54, 73, 172 & 193. Back
64
QQ 10 & 11. Back
65
Q 22. Back
66
National Assembly for Wales Cabinet Statement by Jane Hutt, Minister
for Health & Social Services, 15 November 2001. Back
67
Church in Wales expresses strong commitment to ensuring work
of The Children's Society continues, despite pullout from
Wales, Church in Wales Press Notice dated 19 November 2001. Back
68
QQ 177-182. Back
69
Letter from Mr Bob Reitemeier, Chief Executive Designate of the
Children's Society, to members of the Committee dated 8 February
2002 (not printed). Back
70
Children in Wales Press Release dated 22 January 2002. Back
71
National Assembly for Wales Cabinet Statement by Jane Hutt, Minister
for Health & Social Services, 8 January 2002. Back
72
Children in Wales Press Release dated 22 January 2002. Back
73
Letter from Jane Hutt AM, Assembly Minister for Health & Social
Services to Angela Eagle MP, Parliamentary Under-Secretary of
State, Home Office, dated 25 January 2002. Back
74
Ibid. This Code of Practice was published in October 2001
in response to the Assembly's Voluntary Sector Scheme (September
2000). Back
75
The advertisement was placed by the Personal Fundraising Partnership
and included the logos of the Children's Society, the Cancer Research
Campaign and the Wildlife Trusts. It appeared in the Daily
Post on 6 December 2001. Back
76
Q 226. Back
77
Q 228. Back
78
The Guardian Marketing & PR Section, 14 January 2002,
p. 34. Back
79
The section also provides that "no such inquiry shall extend
to any exempt charity", but the Children's Society is not
one of the exempt charities listed in Schedule 2 to the Act. Back
80
Charities Act 1993, s. 1(4). Back
81
The Memorandum of Association and Articles of Association of the
Church of England Children's Society, a company limited by guarantee
and not having share capital. Back