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NCVO: Kids Company took 'reckless' approach to finances

Commenting on the Public Administration and Constitutional Affairs Committee report into Kids Company, Sir Stuart Etherington, chief executive of NCVO, said:

I’m pleased the committee recognise that Kids Company was an aberration among charities, and that its poor practices should not tarnish charities as a whole.

Charities take their responsibilities for good financial management very seriously. Charities tend, if anything, to be more risk averse than other organisations. No normal charity would take such a reckless approach to its financial sustainability as Kids Company did.

The report rightly underlines the importance of strong governance through a board of trustees willing and able to exercise oversight of senior staff. Normal charities of this scale go to great lengths to ensure that they have experienced trustees with diverse skills, and that those trustees have limited terms of office to ensure fresh external perspectives are regularly brought to bear.

We look forward to discussing the report’s recommendations with charities, the Charity Commission, and government.


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