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Reverted 1 edit by Selector99: It depends. You might say that if it was the part of the Annual report and accounts that was subject to audit, but having looked at where the statement is it's in the unaudited part of the report, so it is an unsubstantia...
→Foundation and expansion: Added Plate Plede. Strange that article has not hitherto included words, "food", "poverty" or term, "food poverty" -org's raison d'etre. Article NOT called the "Collapse of Kids Company".
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Kids Company depended on the financial support of charitable trusts and businesses, as well as grants from central and local government, including the [[City of London]].<ref name=GuardLaughton/> It received significant donations from businesses such as [[Credit Suisse]], [[Morgan Stanley]] and [[John Lewis Partnership|John Lewis]] as well as celebrities such as [[JK Rowling]], [[Jemima Khan]] and the band [[Coldplay]] (the latter giving £8 million).<ref name= BBC31July>{{cite news |url=http://www.bbc.co.uk/news/uk-33726968 |title=Kids Company charity in police probe|date=31 July 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref><ref name= Spectator>{{cite news |url=http://www.spectator.co.uk/features/9437932/the-trouble-with-kids-company/ |title=The trouble with Kids Company |first=Miles |last=Goslett |date=14 February 2015 |work= [[The Spectator]] |accessdate=6 August 2015}}</ref> However, the charity was heavily dependent on public funding: in 2013, the government provided a fifth of its income.<ref name= BBC3July>{{cite news |url=http://www.bbc.co.uk/news/uk-politics-33376467 |title=Kids Company's Camila Batmanghelidjh to step down|date=3 July 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref> Between 2005 and 2015, the charity received £37 million in government grants.<ref name= BBC6Aug>{{cite news |url=http://www.bbc.co.uk/news/uk-33798285 |title=Kids Company: '£3m donation withdrawn amid police probe'|date=6 August 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref>
Kids Company depended on the financial support of charitable trusts and businesses, as well as grants from central and local government, including the [[City of London]].<ref name=GuardLaughton/> It received significant donations from businesses such as [[Credit Suisse]], [[Morgan Stanley]] and [[John Lewis Partnership|John Lewis]] as well as celebrities such as [[JK Rowling]], [[Jemima Khan]] and the band [[Coldplay]] (the latter giving £8 million).<ref name= BBC31July>{{cite news |url=http://www.bbc.co.uk/news/uk-33726968 |title=Kids Company charity in police probe|date=31 July 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref><ref name= Spectator>{{cite news |url=http://www.spectator.co.uk/features/9437932/the-trouble-with-kids-company/ |title=The trouble with Kids Company |first=Miles |last=Goslett |date=14 February 2015 |work= [[The Spectator]] |accessdate=6 August 2015}}</ref> However, the charity was heavily dependent on public funding: in 2013, the government provided a fifth of its income.<ref name= BBC3July>{{cite news |url=http://www.bbc.co.uk/news/uk-politics-33376467 |title=Kids Company's Camila Batmanghelidjh to step down|date=3 July 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref> Between 2005 and 2015, the charity received £37 million in government grants.<ref name= BBC6Aug>{{cite news |url=http://www.bbc.co.uk/news/uk-33798285 |title=Kids Company: '£3m donation withdrawn amid police probe'|date=6 August 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref>


The charity's first location was a "drop-in" centre in South London, established in 1996.<ref name="Spilsbury2013">{{cite book|first=Louise|last= Spilsbury|title=Protecting and Caring for Children|date=31 May 2013|publisher=Raintree|isbn=978-1-406-23854-9|page=36}}</ref> By 2015, Kids Company had expanded to have 11 centres in London and Bristol, as well as an outreach project in Liverpool, employing in total 650 people.<ref name= BBCWhatwentwrong>{{cite news |url=http://www.bbc.co.uk/news/uk-33788415 |title=What went wrong at Kids Company?|date=6 August 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref> It provided a range of services to children who in many cases were not being looked after by their parents, including counselling, hot meals at drop-in centres, and assistance with healthcare and housing.<ref name= BBCWhatwentwrong/> The charity attracted controversy through its practice of giving cash payments to the children it was helping.<ref>{{cite news |url=http://www.thetimes.co.uk/tto/news/uk/article4515110.ece |work=[[The Times]]|first=Dominik |last=Lemanski|title=Kids Company’s charity cash ‘used for drink and drugs’ |date=2 August 2015 |accessdate=6 August 2015}}</ref> The charity's annual reports claimed that the number of people it was helping increased from 13,500 in 2008 to 16,500 in 2010 and then rose to 36,000 in 2011 and remained at that number for each year since.<ref name= Spectator/> It was reported that some former senior members of Kids Company claimed these numbers were "exaggerations".<ref name= Spectator/>
The charity's first location was a "drop-in" centre in South London, established in 1996.<ref name="Spilsbury2013">{{cite book|first=Louise|last= Spilsbury|title=Protecting and Caring for Children|date=31 May 2013|publisher=Raintree|isbn=978-1-406-23854-9|page=36}}</ref> In 2012, the charity carried out its ''Plate Pledge'' survey on tackling childhood hunger, malnutrition and food insecurity<ref>{{cite web|url=http://moderngov.southwark.gov.uk/documents/s39752/Plate%20Pledge%20Presentation%20Southwark.pdf|title=Tackling Childhood hunger, malnutrition and food insecurity|Publisher=[[Kids Company]][[London Borough of Southwark]]|accessdate=11 August 2015}}</ref> which was later cited by the [[London Assembly]] in its own investigation into food poverty in London.<ref>{{cite web|url=http://www.london.gov.uk/media/assembly-press-releases/2012/09/what-more-can-be-done-to-tackle-food-poverty-in-london|title=What more can be done to tackle food poverty in London?|work=[[London Assembly]]|date=24 September 2012|accessdate=11 August 2015}}</ref> The ''Plate Pledge'' fundraising appeal was subsequently launched focused on the £2 cost of a meal and to raise awareness of the number of children who go hungry.<ref>{{cite web|http://www.thirdsector.co.uk/case-study-kids-company/fundraising/article/1223337|title=Case study - Kids Company|work=[[http://www.thirdsector.co.uk/about-third-sector|Third Sector]]|date=3 December 2013|accessdate=11 August 2015}}</ref><ref>{{cite news|url=http://www.theguardian.com/society/2015/feb/15/how-kids-company-feeds-britains-hungry-children|title=How Kids Company feeds Britain’s hungry children|work=[[The Guardian]]|date=15 February 2015|accessdate=11 August 2015}}</ref><ref>{{cite news|url=http://www.independent.co.uk/life-style/health-and-families/health-news/look-back-in-hunger-britains-silent-scandalous-epidemic-7622363.html|title=Look back in hunger: Britain's silent, scandalous epidemic|work=[[The Independent]]|date=6 April 2012|accessdate=11 August 2015}}</ref> By 2015, Kids Company had expanded to have 11 centres in London and Bristol, as well as an outreach project in Liverpool, employing in total 650 people.<ref name= BBCWhatwentwrong>{{cite news |url=http://www.bbc.co.uk/news/uk-33788415 |title=What went wrong at Kids Company?|date=6 August 2015 |work=[[BBC News]] |accessdate=6 August 2015}}</ref> It provided a range of services to children who in many cases were not being looked after by their parents, including counselling, hot meals at drop-in centres, and assistance with healthcare and housing.<ref name= BBCWhatwentwrong/> The charity attracted controversy through its practice of giving cash payments to the children it was helping.<ref>{{cite news |url=http://www.thetimes.co.uk/tto/news/uk/article4515110.ece |work=[[The Times]]|first=Dominik |last=Lemanski|title=Kids Company’s charity cash ‘used for drink and drugs’ |date=2 August 2015 |accessdate=6 August 2015}}</ref> The charity's annual reports claimed that the number of people it was helping increased from 13,500 in 2008 to 16,500 in 2010 and then rose to 36,000 in 2011 and remained at that number for each year since.<ref name= Spectator/> It was reported that some former senior members of Kids Company claimed these numbers were "exaggerations".<ref name= Spectator/>


==Police investigation==
==Police investigation==

Revision as of 14:45, 11 August 2015

Kids Company
(Keeping Kids Company)
FoundedCirca 1996
30 September 1997
(incorporated)[1]
25 February 1998
(registered as a charity)[2]
FounderCamila Batmanghelidjh
Dissolved5 August 2015
(Ceased operations)
FocusInner-city children and young people
Location
Area served
London (main area of operations); also Bristol and Liverpool
Key people
Employees650 (as at closure in 2015)[3]
Websitekidsco.org.uk
Company number (E.W.) 03442083[1]
Charity number (E.W.) 1068298[2]

Kids Company (officially Keeping Kids Company)[1][2] is an incorporated[1] and registered charity,[2] founded by Camila Batmanghelidjh in 1996 to provide support to deprived inner city children. From its original "drop-in" centre in South London it expanded over the following two decades to be a prominent children's charity operating 11 centres in London and Bristol and an outreach project in Liverpool. The charity said that from 2011 it was supporting 36,000 children per year, although there have been claims that this was an exaggeration. Funding was provided by businesses and through government grants.

In 2015, it was first reported that Kids Company was in significant financial difficulty and government funding was withheld on the condition that Batmanghelidjh stand down as Chief Executive because of concerns about the charity's standards of governance. The terms of a restructuring grant of £3 million were agreed with the government and a further £3 million was pledged by a private donor. However, the government sought clawback of the grant very shortly after it was paid as the charity had breached its terms and the private donor withdrew following the announcement of a police investigation into allegations of sexual abuse at the charity. On 5 August 2015 the charity ceased operations and announced it would begin the process to place it into compulsory liquidation.

Foundation and expansion

The organisation was founded in December 1996 by Camila Batmanghelidjh.[4] The philosophy of the charity was based on Batmanghelidjh's belief that children’s behaviour is biologically determined, with the quality of parenting at an early age 'hard-wiring' a child’s brain for success or failure, deviance or conformity.[5][6] The Guardian described this approach as "pseudoscience".[5] Batmanghelidjh was interviewed for an academic study on the relationship between brain development and social deprivation, and according to the authors of the study, Batmanghelidjh was “clear that neuroscience is good for fundraising in the business sector”.[5]

Kids Company depended on the financial support of charitable trusts and businesses, as well as grants from central and local government, including the City of London.[7] It received significant donations from businesses such as Credit Suisse, Morgan Stanley and John Lewis as well as celebrities such as JK Rowling, Jemima Khan and the band Coldplay (the latter giving £8 million).[8][9] However, the charity was heavily dependent on public funding: in 2013, the government provided a fifth of its income.[10] Between 2005 and 2015, the charity received £37 million in government grants.[3]

The charity's first location was a "drop-in" centre in South London, established in 1996.[11] In 2012, the charity carried out its Plate Pledge survey on tackling childhood hunger, malnutrition and food insecurity[12] which was later cited by the London Assembly in its own investigation into food poverty in London.[13] The Plate Pledge fundraising appeal was subsequently launched focused on the £2 cost of a meal and to raise awareness of the number of children who go hungry.[14][15][16] By 2015, Kids Company had expanded to have 11 centres in London and Bristol, as well as an outreach project in Liverpool, employing in total 650 people.[17] It provided a range of services to children who in many cases were not being looked after by their parents, including counselling, hot meals at drop-in centres, and assistance with healthcare and housing.[17] The charity attracted controversy through its practice of giving cash payments to the children it was helping.[18] The charity's annual reports claimed that the number of people it was helping increased from 13,500 in 2008 to 16,500 in 2010 and then rose to 36,000 in 2011 and remained at that number for each year since.[9] It was reported that some former senior members of Kids Company claimed these numbers were "exaggerations".[9]

Police investigation

On 30 July 2015 the Metropolitan Police announced an investigation into the charity by the complex case team of its sexual offences, exploitation and child abuse command.[19] The investigation involved allegations of child sexual abuse[19] relating to the period from 2008 to 2012.[20] There have been allegations (and denials) that serious complaints and sexual assault allegations were not investigated properly.[21] Batmanghelidjh has claimed that the allegations were "completely invalid".[22]

Financial problems and cessation of operations

Kids Company finances and employees:
financial years 2008 – 2013[2][23]
Year Income
(£ million)		 Spending
(£ million)		 Employees
(full time equiv.)
2008 11.2 11.0 176
2009 13.0 13.3 231
2010 14.2 14.2 244
2011 15.6 15.5 330
2012 20.3 19.0 356
2013 23.1 23.0 496

From 2009, the accounts of Kids Company presented to the Charity Commission contained repeated warning notes that the charity's financial reserves were inadequate relative to its size.[23] Between 2009 and 2013, its income increased by 77% but its expenditure increased by 72% and almost all of the funding it received each year was spent in the same year.[23] In March 2014, an audit of the charity carried out on behalf of the Charity Commission found that Kids Company had a "serious cashflow" problem and noted that "without improving the cash position of the charity it is not possible to build reserves and invest in new activities and locations."[23] The Financial Times has said that the charity "operated on a financial knife-edge".[24] Over a three year period, two finance directors of the charity resigned because they felt that the charity's trustees failed to respond to the warnings that it needed to build its financial reserves.[23] There have also been allegations by former Kids Company employees of extravagance and waste in the management of the charity's financial resources.[25]

Kids Company relied heavily on government funding.[10] However, doubts about the advisability of providing the charity with funding began to be raised in government circles. During his tenure as Parliamentary Under Secretary of State for Children and Families in the Department of Education between 2010 and 2012, Tim Loughton MP raised "serious concerns" about the grants being given to the charity.[7] In 2011 the government seconded two civil servants to the charity for a year to assist its management team, in apparent recognition of concerns about Kid's Company's financial position.[24] In 2015 an investigation by the BBC's current affairs show Newsnight and the website BuzzFeed found that the British government suspended £3 million in funding for Kids Company until Batmanghelidjh was removed from her position as chief executive, citing concerns over the governance of the charity. In March 2015 the interim finance director, head of human resources and director of development resigned, which the charity explained as due to uncertainty of funding.[26] On 3 July 2015 it was reported that Batmanghelidjh was to step down as chief executive and continue in a "presidential" role. The government indicated that it would end £5 million of annual funding.[25][27]

With the charity then stating that it was in financial difficulty, and seeking a £3 million grant to assist in restructuring, Richard Heaton, the Cabinet Office Permanent Secretary, wrote to ministers Oliver Letwin and Matthew Hancock seeking a Ministerial direction, because although he recognised the good work of the charity, he was concerned the grant “does not represent value for money, in terms of delivering the outcomes for which the department is funded by parliament”.[7] The ministers said in their reply that they believed he should go ahead with the grant, because they judged the charity to have a “realistic prospect of long-term viability so it can continue to deliver for vulnerable young people”.[7]

Shortly after payment of the grant to the charity, the Government sought to recover the money on the ground that Kids Company had breached the terms of the grant; specifically, that some of the grant had been used to pay staff salaries. Batmanghelidjh denied that this had breached the terms of the grant.[3][28] The government grant was to have been matched by a private donation of £3 million. However, according to Batmanghelidjh, when the donor became aware of a police investigation into sexual abuse allegations at Kids Company, the private donation pledge was withdrawn.[3][28][29] Alan Yentob, the chairman of the charity's trustees, has also said that following the abuse allegations, the trustees advised the philanthropists they could not accept the funds "because we know that with these allegations around we will not be able to fundraise because people will say 'What's going on?'"[30] As a result, the charity announced that it would close down because "it is unable to pay its debts as they fall due”[31] and it ceased operations at 7.00 pm on 5 August 2015.[28] On the same day, Kids Company released an official statement on its website stating, amongst other things, that a winding up petition would be issued and the charity would be placed into compulsory liquidation after a court hearing in due course.[32] In the immediate aftermath of the closure, an agency was asked by the government to review the cases of 6,000 children that had been supported by Kids Company.[33]

References

  1. ^ a b c d "Keeping Kids Company". Companies House. Retrieved 5 August 2015.
  2. ^ a b c d e "Keeping Kids Company". Charity Commission. Retrieved 5 August 2015.
  3. ^ a b c d "Kids Company: '£3m donation withdrawn amid police probe'". BBC News. 6 August 2015. Retrieved 6 August 2015.
  4. ^ K. Jaishankar (2009). International Perspectives on Crime and Justice. p. 173. ISBN 978-1-4438-0198-0.
  5. ^ a b c Beresford, Peter (3 August 2015). "How did Kids Company get so far away from those it was meant to help?". The Guardian. Retrieved 5 August 2015.
  6. ^ Lexmond, Jen; Grist, Matt (2011). The Character Inquiry (PDF). Demos. ISBN 978-1-906-69369-5. Retrieved 5 August 2015.
  7. ^ a b c d Perraudin, Frances; Walker, Peter; Elgot, Jessica (5 August 2015). "Kids Company: ex-children's minister raised 'serious concerns' about charity". The Guardian. Retrieved 5 August 2015.
  8. ^ "Kids Company charity in police probe". BBC News. 31 July 2015. Retrieved 6 August 2015.
  9. ^ a b c Goslett, Miles (14 February 2015). "The trouble with Kids Company". The Spectator. Retrieved 6 August 2015.
  10. ^ a b "Kids Company's Camila Batmanghelidjh to step down". BBC News. 3 July 2015. Retrieved 6 August 2015.
  11. ^ Spilsbury, Louise (31 May 2013). Protecting and Caring for Children. Raintree. p. 36. ISBN 978-1-406-23854-9.
  12. ^ "Tackling Childhood hunger, malnutrition and food insecurity" (PDF). Retrieved 11 August 2015. {{cite web}}: Unknown parameter |Publisher= ignored (|publisher= suggested) (help)
  13. ^ "What more can be done to tackle food poverty in London?". London Assembly. 24 September 2012. Retrieved 11 August 2015.
  14. ^ "Case study - Kids Company". [Sector]. 3 December 2013. {{cite web}}: |access-date= requires |url= (help); External link in |work= (help); Missing or empty |url= (help); Text "http://www.thirdsector.co.uk/case-study-kids-company/fundraising/article/1223337" ignored (help)
  15. ^ "How Kids Company feeds Britain's hungry children". The Guardian. 15 February 2015. Retrieved 11 August 2015.
  16. ^ "Look back in hunger: Britain's silent, scandalous epidemic". The Independent. 6 April 2012. Retrieved 11 August 2015.
  17. ^ a b "What went wrong at Kids Company?". BBC News. 6 August 2015. Retrieved 6 August 2015.
  18. ^ Lemanski, Dominik (2 August 2015). "Kids Company's charity cash 'used for drink and drugs'". The Times. Retrieved 6 August 2015.
  19. ^ a b "Met police launch inquiry into Kids Company over child abuse claims". The Guardian. 30 July 2015. Retrieved 30 July 2015.
  20. ^ Gordon Rayner (30 July 2015). "Kids Company faces Met Police investigation". The Daily Telegraph. Retrieved 10 July 2015.
  21. ^ "Kids Company accused of mishandling sexual assault allegations". BBC News. 6 August 2015.
  22. ^ "Kids Company founder: Abuse allegations 'completely invalid'". ITN News. 6 August 2015. Retrieved 6 August 2015.
  23. ^ a b c d e Laville, Sandra; Barr, Caelainn; Slawson, Nicola (6 August 2015). "Kids Company trustees accused of ignoring finance warnings". The Guardian. Retrieved 7 August 2015.
  24. ^ a b "Two civil servants parachuted into Kids Company as concerns mounted". The Financial Times. 6 August 2015. Retrieved 7 August 2015.
  25. ^ a b Rothwell, James; Bingham, John (7 August 2015). "Kids Company boss Camila Batmanghelidjh turned HQ into private 'Aladdin's den'". The Daily Telegraph. Retrieved 7 August 2015. Cite error: The named reference "telegraph-20150705" was defined multiple times with different content (see the help page).
  26. ^ Cook, Chris (3 July 2015). "Kids Company's Camila Batmanghelidjh asked to step down by government". BBC News.
  27. ^ Butler, Patrick (3 July 2015). "Camila Batmanghelidjh to leave Kids Company, citing political 'ugly games'". The Guardian. Retrieved 10 July 2015.
  28. ^ a b c Rawlinson, Kevin (6 August 2015). "Kids Company closure: government 'knew £3m grant was to go to pay staff'". The Guardian. Retrieved 6 August 2015.
  29. ^ "Kids Company: benefactor pulled £3 million donation from charity as soon as 'allegations of sexual abuse' were raised". The Independent. 6 August 2015. Retrieved 6 August 2015.
  30. ^ "Alan Yentob: 'Kids Company allegations are disgraceful'". Channel 4 News. 6 August 2015.
  31. ^ Wright, Oliver (5 August 2015). "Kids Company: Camila Batmanghelidjh lashes out at 'ill-spirited ministers' as she announces the organisation is about to go bankrupt". The Independent. Retrieved 6 August 2015.
  32. ^ "Official statement on 5 August 2015". Kids Company. 5 August 2015. Retrieved 5 August 2015.
  33. ^ Laville, Sandra (5 August 2015). "Kids Company closure: 6,000 children have lost support". The Guardian. Retrieved 7 August 2015.
Newspaper reports
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