Why is Children In Need sitting on a £90million fortune?


BBC Children in Need has kept £87.7million stashed away in its investment portfolio instead of giving it directly to charity, its latest accounts reveal.The charity, which has raised more than £600million for youngsters in the UK since 1980, is preparing to launch a fresh appeal to viewers next month.But some donors may be surprised to discover it does not give the money directly to good causes.’

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Children in Need has £87,705,000 invested in a range of portfolios, up from £81.2million last year. Another £2.2million is sitting in its bank accounts, up from £864,000 last year.

The accounts reveal it paid £9,000 in fees to fund managers and made £893,000 in investment income.

Its latest charity drive will include a series of celebrity-endorsed fundraising campaigns, and with the profits of a recently released BBC recording of the Beach Boys track God Only Knows, is expected to raise more than £20million.

The money is used to help charities that support disadvantaged and disabled children around the country. Yesterday, the BBC insisted all of the money it raises is given to charity, but said it does not release all of it at once so it is able to measure the impact of its donations and ensure funds are being put to good use.

A spokesman said: ‘This money is not simply cash. It has been allocated to projects working with disadvantaged children and young people throughout the UK.

‘In line with standard grant-making practice we do not typically release the full grant upon successful application from projects but rather over a three-year period on a quarterly basis so we can monitor projects to ensure that they continue to comply to the terms and conditions of the grant.’

Why is Children In Need sitting on a £90million fortune?

In 2008 the BBC faced the prospect of an investigation by the Serious Fraud Office after keeping more than £100,000 which should have been given to charity.

The broadcaster admitted staff knowingly withheld money meant for causes including Children in Need and Comic Relief. The scandal emerged after auditors carried out an investigation into the BBC’s phone-voting systems.

The cash was generated by callers voting after phone lines had closed on about 20 shows, believed to include Eurovision and Fame Academy, between October 2005 and September 2007.

They were still charged for their calls, typically around 25p a time, but the cash went into the bank account of BBC Worldwide, the corporation’s commercial arm, rather than the charities.

An internal audit showed that a number of workers in Audiocall, part of BBC Worldwide, repeatedly kept money back. It has now been passed on, with interest. The BBC has said the ‘small number’ of staff involved face disciplinary action.

In 2006 TV viewers were warned against giving money to the BBC’s Children in Need appeal.

An independent watchdog said donating to the charity is ‘a bad idea’ because of its huge administration costs – £2.4million out of a total of £33million raised at the time.

Intelligent Giving said money is swallowed up by the need for two sets of bureaucrats: those who run the charity and those in charge of the organisations to which it gives money.

source: yournewswire

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17 Comments

  1. Anyone who gives to Children in Need is very stupid indeed. Why are there children in need anyway, in one of the world’s richest countries? There are lots more very very wealthy charities – Guide Dogs for the Blind being another one. In Britain, as the rights of the individual to benefits has been eroded, the charities are starting to surge in wealth. Let’s get back to everyone having enough to live on by right and get rid of these exploitative, unaccountable charities.

  2. So you would stop the BBC raising all this money albeit with higher than normal costs and forfeit £600M which would not otherwise be raised? What a sad person you are to deny support to children in need (not the charity but real children).

  3. We have a grant from CIN and have been able to do some amazing work because of this. Grant giving bodies appear to sit on large sums of money but in reality that funding is often allocated to be paid in installments to grant holders over a period of time. If funding was allocated and provided up front at the start of a project there is a risk of projects not actually delivering on stated outcomes. So holding sums in reserves shows a responsible approach.

  4. You should be ashamed. Not only is this article wildly inaccurate, but attempting to shame another charity and including your own big donate button?

    Also, as a side note, 100% of money raised by CiN goes on Grants to Charities. Not a penny is kept for administration. It’s funded through the very investment portfolio which you’re berating.

  5. I don’t know much about it, but those sound like very good reasons for not spending all the cash in one go.

  6. It’s sitting on a £90 million fortune because it maintains prudence, allocates money in stages, and does not assume donations will continue indefinitely.

    Kids Company maintained no reserves, and look at the clusterf*** that generated.

  7. This does not suprise me at all.its well known that social workers and the courts are been accused of forced adoptions for profit . Look at these High honoured people who turn out to be pedeos or having sex and drug parties. Its the kids I feel sorry for we have a goverment and social services who should be funding to give these children a better life not relying on children in need which also looks like its going the same way if this is right. Looking at it in a wider picture is the truth that these well educated mps ,lords goverments,charities dont really care about children and they look at children like they are pound signs so they can live their dishonest rich life style

  8. This is a shocking story and I agree with the First Lady who commented, why do we have to donate to children in need? Being one of the richest countries, how much money do they need? It makes more sense to split the money between as the lady said, guide dogs and plenty more needy charities

  9. Children in Need is Another Corporate Charity that is Lining the Pockets of Already Rich people!..How much actually goes to Children in need?..Very Little I expect!…I have Never given to this Rip off “Charity” ..It”s a load of Middle and Upper class White collar workers who gain from this Not Charities!…….If you are Giving to this You must have Mug written on your Forehead!..Come on now lets see what the Do gooders have to say on this!”

  10. All these big appeals from these highly recognised charities cost a hell of a lot of money yet the charities that are less noticed actually invest their money in the people/causes that they actually support. Wake up people! Most of your donation will go to anyone/everything except the children that need it. If tou want to support charities or indeed children who are in need, check out your local hospitals for smaller less known charities.

  11. I think there should be a list of children charities on the television on children in need with a money meter for how much they need and when ppl donate they fill up each meter and what ever is left keep it in the bank for a rainy day then we can see where the money is actually going to

  12. I cannot believe people are seriously saying why should we give to children in need you shouldn’t if that’s your attitude noone wants your money. You should want to help children who are dying, who are orphaned who face a life of pain. They didn’t ask for these circumstances. We are supposed to love and protect children, not leave them to fend for themselves!. What bitter and cynical minds some of you have. I hope if there is wrong doing it gets sorted out quickly. I think you’ll find they have projects like blind dogs etc within children in need for kids but to say they are a priority over kids living with abuse, life threatening illnesses is sick and you should be ashamed of yourselves.

  13. This is typical of the BBC, this money does not belong to these tightwads, it’s the childrens money, they should be forced to share this out to hospitals, childrens centres and care homes for children and disabled adults alike, the public payed this money, not the government, not governers, not members of the board, the public should be allowed to decide were there donated money should go and if the charity is suitable enough, then it should be given, greedy BBC bosses let go of this money which doesn’t belong to you….

  14. Siobhan..This post is obviously Lost on you !..You must be on of the Sheeple who believe everything the BBC does is Good!..I haven”t seenn a Single thing in my area done by this Corporate “Charity”…So Tell me “Why are they Sitting on 90 Million pounds” if they really want to help children?…If it isn”t being spent the children are Not being helped are they?.

  15. I never give to these huge charities, but i will give at the source to those who have not got huge budgets for admin, waste of money, its a show and they think it makes us all look benevolent. why are there not enough wells, vaccinations, food or doctors.. we have less money than them, our NHS is down the pan, people are also dying in the streets, no work, no money, children hungry, its a bribe culture, companies give huge amounts and get perks. We need a program for us.and our soldiers too.

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