Sick Kids charity cleared of misconduct in report

Published on Thursday 9 September 2010 08:34

THE charity behind the ill-fated New Pyjamas fundraising campaign for Edinburgh's Sick Kids hospital was today cleared by charity regulators of any misconduct.

The Office of the Scottish Charity Regulator (OSCR) said it had found no evidence that the trustees of the Sick Kids Friends Foundation had failed in their responsibilities.

The Evening News revealed in February this year that the appeal to equip the new Sick Kids hospital at Little France had spent 500,000 but raised just 60,000.

Sources said the appeal had been beset by infighting and personality clashes and the situation culminated in the suspension of appeal director Elaine McGonigle and the decision by charity chairman Graeme Millar to step down.

The appeal, launched in 2008, aimed to raise 15m to fund facilities including a classroom, internet access, and part-funding for a family hotel on the site of the new hospital, due to open in 2013.

Today's report by OSCR said: "In February 2010, OSCR became aware of intense media coverage about the New Pyjamas campaign. Reports suggested that charitable funds in the region of 500,000 had been expended with a return of only 60,000. OSCR received a complaint making several allegations about the campaign and the charity, and a claim that the charity's trustees had been made aware of concerns and had failed to take action. OSCR has found no evidence of misconduct on the part of the charity's trustees, who satisfied their responsibilities under charity law.

"However, the inquiry did highlight areas where the charity's governance could be strengthened. Several recommendations have already been addressed or are under consideration by the charity's trustees, who have co-operated openly throughout the inquiry."

The report recommended the trustees should review the constitution, to provide clarity regarding authority and decision making and said "robust and clear lines of authority" should be put in place with regard to the fundraising campaign, "so that all trustees and staff understand these from the outset".

Laura Anderson, OSCR's head of enquiry and investigations, said: 'We recognise there has been considerable interest in this case. We have conducted a full and thorough inquiry. It is therefore encouraging to see that steps are already being taken by the trustees to implement our recommendations."

OSCR's report also reminded other charity trustees of their responsibilities in having an oversight of major fundraising projects and in establishing appropriate management structures and clear lines of authority.