Regulator disqualifies trustees of Fashion for Relief

The Charity Commission published the findings of its inquiry into Fashion for Relief, revealing serious governance and financial mismanagement issues. As a result, three trustees—Bianka Hellmich (disqualified for nine years), Naomi Campbell (five years), and Veronica Chou (four years)—were disqualified from future trusteeship.

Key Outcomes

• Financial Recovery: Over £344,000 was recovered, and a further £98,000 of charitable funds was protected.
• Charity Removal: Fashion for Relief has been removed from the register of charities.
• Charitable Distribution: Recovered funds were used to donate to two other charities and settle outstanding liabilities.

Mismanagement Details

The inquiry indicated that between April 2016 and July 2022, only 8.5% of the charity's total expenditure was allocated to charitable grants. The trustees failed to properly assess the charity’s fundraising strategies and associated costs, leading to inappropriate financial decisions.

Specific Issues Identified:

• Fundraising Inefficiency: Significant expenditures on fundraising without clear benefits.
• Unauthorised Payments: A total of £290,000 was paid to Bianka Hellmich for consultancy services, violating the charity’s constitution. Although Hellmich proposed to repay the funds, the interim managers secured the repayments.
• Lack of Oversight: Charity funds were managed by external advisors rather than being kept in a dedicated charity account, leading to further financial discrepancies. The Commission recovered £54,000 from one professional advisory firm.

Statement from the Charity Commission

Tim Hopkins, Deputy Director for Specialist Investigations and Standards, emphasised the legal obligations of trustees to act in the charity's best interests. He stated, “The inquiry has found that the trustees of this charity failed to do so, resulting in our action to disqualify them.”

The Charity Commission's inquiry into Fashion for Relief highlights the critical need for proper governance and financial management in charitable organisations. The disqualification of trustees and recovery of funds aim to restore integrity and ensure that charitable objectives are met. The full report on the inquiry's findings is available on gov.uk.