Charity set out to raise £15m..yet ended up losing £1m

Published on Wednesday 9 February 2011 15:06

THE total cost of the failed flagship appeal to raise money for the Capital's new Sick Kids hospital has hit almost £1 million, it has been revealed.

&#149 Lord Foulkes, left, and Jack McConnell promoted the campaign

The New Pyjamas campaign was supposed to generate 15m to make the new facility at Little France "truly world-class".

But the campaign suffered a high-profile collapse last year. Elaine McGonigle, the appeal's director, was suspended then made redundant.

The Evening News can reveal the campaign has left a 900,000 hole in the war chest of the Sick Kids Friends Foundation - which was responsible for the project.

The information has emerged in the charity's 2010 official accounts.

These accounts show that despite a two per cent rise in the amount of money donated by the public, that has only served to cover the loss made by New Pyjamas.

While the SKFF's own fundraising cost the organisation around 400,000, it managed to raise more than 2m in the past 18 months. Of the 600,000 spent "generating income" by the New Pyjamas arm, only 100,000 was raised.

Together with other costs, including making ten staff redundant, the final figure is estimated to be just more than 900,000.

That is more than half of the SKFF's total running costs in that timeframe, and could well increase as the employment tribunal between the SKFF and Ms McGonigle is set to take place in May, with the latter seeking a financial settlement.

SKFF chairman David Reith said: "The cost of fundraising for the New Pyjamas campaign proved to be unsustainable and following close monitoring from June 2009, the decision to close the campaign at the beginning of March 2010 was regrettable but essential.

"During what has been an extremely tough period for all charities, when we have had our own very challenging difficulties to surmount, we have increased income as well as the number of grants made to help children and families.

"We are deeply indebted to our supporters from all walks of life who recognise our outstanding record over many years and support our vital work in transforming the lives of sick children and their families."

When New Pyjamas was launched two years ago there was great excitement about the prospect of 15m being raised in what was supposed to be the space of three years. It won high-profile celebrity backing and spoke of well-known "patrons" coming on board.

At the beginning of last year, the Evening News revealed how chairman Graeme Millar had resigned and Ms McGonigle suspended.

Lothian and Borders Police are currently investigating claims of fraud against the Perthshire-based woman.