Black Country lawyers’ charity is wound up

A CHILDREN’S charity run by a Wolverhampton lawyer has been wound up by the Government after it was discovered that less than 22% of donations went to charitable causes.

Trustee David Dorrance ran the Needy Children International Foundation with Raymond Williams. Both men initially contested an attempt by the Company Investigation Branch (CIB) of the Insolvency Service to close down the charity in the public interest.

But in February the CIB obtained a High Court injunction stopping telesales staff from raising cash after discovering their script failed to explain the levels of commission paid to staff and that the proportion of donations spent on good causes was between 9p-22p in every pound. The charity was wound up at a hearing in Manchester on Monday.

According to the Law Society Mr Dorrance is a solicitor at the Wolverhampton firm Smith Dawson while the charity’s website says Mr Williams, of Wolverhampton, is a barrister, but the Bar Council has no record of him.

The charity’s website says it has funded an education programme for 16 to 21-year-olds in Wolverhampton and also helped children internationally. The CIB took action following an investigation by the Charity Commission under section 8 of the Charities Act 1993 which gives the body the power to probe official misconduct.

Insolvency Service investigation supervisor Scott Crighton, said: “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.”

According to latest filed accounts for the year to January 2010, the charity raised £262,064 and spent £247,765.