* Little Treasures Children's Trust Collections *

hybernia

Help appreciated from anyone here who can read a balance sheet!

We've received a plastic sack through our letterbox from Little Treasures Children's Trust (registered charity no: 1119024.) The sack is over-printed: 'Little Treasures offers help and support to improve the lives of sick children and their families. There are so many very sick and disabled children in the UK that are not getting any help. . .'

The text asks: 'Please help support sick children by recycling your unwanted clothing' but also adds: 'We urgently need adult and children clothing, paired shoes, bedding, handbags, belts, soft toys, perfumes and cosmetics.'

The charity's website is https://www.littletreasureschildrenstrust.org and its collections --says the plastic sack -- are being undertaken by something called E.L.T. (This turns out to be East London Textiles Ltd.)

The plastic sack also carries the following text: 'Thanks to your donations Little Treasures Children's Trust Charity is aiming to generate at least £50,000 in the first year of collection.'

Whilst my family is always happy to support charitable ventures, several aspects of this seem odd. Aside from the sweeping statement about "so many very sick and disabled children in the UK that are not getting any help" there's the request for "perfumes and cosmetics". And, of course, this business about hoping to raise £50,000 in the first year of collection.

From what I can gather, this isn't the "first year" of collecting at all: between January and December 2009, clothing collections generated over £18,000.

The charity's website is very poor on detail and even worse on grammar and spelling. And it seems to avoid any mention of how much, exactly, is paid out to help "so many very sick and disabled children in the UK", either as a total monetary sum, or as a percentage of income received.

I have gone to the Charity Commission website --

http://www.charity-commission.gov.uk/Showcharity/RegisterOfCharities/CharityWithoutPartB.aspx?RegisteredCharityNumber=1119024&SubsidiaryNumber=0

but am still not much wiser. And reading the most recent annual statement of accounts, to year ending 31st January 2010, hasn't made things much clearer.

However, I'm not an accountant; I can't read a balance sheet. For that reason, then, I'd be very grateful if someone could have a look at the accounts as at 18 months ago (there seems to be nothing on file since then).

Pages 15 and 16 have left me really struggling with the math (and also the way the families of the charity's Trustees seem to be very closely linked to the charity) and especially this entry on page 16:

Incoming Resources to January 31st 2010: £153,873.

Resources Expended / Support Costs Management: £143,602.

Is the charity really saying here that costs were so high, only £10,000 was left for "so many very sick and disabled children in the UK that are not getting any help"?

Come to think of it, income and costs seem to go up and down in tandem:

Incoming Resources to January 31st 2009: £224,439.

Resources Expended / Support Costs Management: £238,882. (Of which £157,919 was spent on wages.)

I am not posting here as praise or vent, and I am not trying to "warn" about this charity's doorstep collections. I am, however, looking to understand more of the way it is carrying out its charitable work, and whether or not Little Treasures Children's Trust is a doorstep clothes collection fund-raiser worthy of support.

Incidentally, the charity says in its last statement of accounts that "we are a local charity that provides hands-on services and grants which mainly operates in Essex and the London Borough of Havering."

If that's the case, why am I being asked for support? I live 300 miles to the north.

ju1i3_2

Very similar in name to Everyone's Children's Trust which is bogus. I notice your Little Treasures phone number is the fax machine of a computer company. ECT also has ties to Romford. I suspect the same people are behind it.

They've been reported before on a forum. I tried putting the link here but it won't let me. Just google East London Textiles and it's the 4th hit.

double_mummy

just had a quick look at the balance sheet (i am an accountant) it actually shows that they paid out none of the money as they had made a loss the previous year and were therefore using that years money that they made to pay off some of the debts from the previous years

if you look on page 5 and 6 of the report it details the support work that they do and that they spent just under 80000 GBP on in the past financial year

The reports have been independently reviewed by someone with a FCCA which is a well respected qualification in the field so therefore i dont see any problems with them.

Most charities do operate at a loss and so this is not uncommon to see on a balance sheet.

hybernia

double_mummy wrote: »

just had a quick look at the balance sheet (i am an accountant) it actually shows that they paid out none of the money as they had made a loss the previous year and were therefore using that years money that they made to pay off some of the debts from the previous years

if you look on page 5 and 6 of the report it details the support work that they do and that they spent just under 80000 GBP on in the past financial year.

The reports have been independently reviewed by someone with a FCCA which is a well respected qualification in the field so therefore i dont see any problems with them.

Most charities do operate at a loss and so this is not uncommon to see on a balance sheet.

Thanks for that, doublemummy. It certainly helps. Unfortunately there's something about this "local" charity which makes me wonder if it's all it is claimed to be -- the fact that its website design, and that of East London Textiles, is by the same people being but one niggling worry.

Then there's the general vagueness of its reports, as well as the unresolved question of how come a 'local' charity is canvassing for national support on the basis of a 'sales pitch' that talks about sick and disabled children "in the UK". Nothing on its website or in its report testifies to the presence of qualified professionals with a pediatric background.

As the charity's last statement of accounts was 18 months ago, and it seems very closely associated with two families (Rowbothams and Ratcliffes) in particular -- surely, unusual for a national charity? -- one must inevitably wonder at the provenance of an operation which seems to be claiming a UK-wide role by addressing what it says is a UK-wide problem.

I'll chuck the Little Treasures Children's Trust plastic bag in the bin. There are really too many unanswered questions for comfort, where I'm concerned!

hybernia

ju1i3 wrote: »

Very similar in name to Everyone's Children's Trust which is bogus. I notice your Little Treasures phone number is the fax machine of a computer company. ECT also has ties to Romford. I suspect the same people are behind it.

They've been reported before on a forum. I tried putting the link here but it won't let me. Just google East London Textiles and it's the 4th hit.

Julie: sincere thanks for that, and also for your other thread on MSE:

http://forums.moneysavingexpert.com/showthread.php?p=44897086

I am trying to figure out why Romford & Chigwell, Essex, has become the centre of all knowledge when it comes to the plight of seriously ill children in the UK. I'm also trying to figure out why Little Treasures Children's Trust has the same website designer as East London Textiles Ltd. But that's just a coincidence, right?

As to the Charities Commission, I have been browsing the web today and have stumbled across this blog / website:

http://www.frugalways.co.uk/life.php/charity-commission-response-to-our-little-treasures-children-s-trust-complaint

You and others here may find it of interest.

trumpton

I would not be happy with those accounts.

I would like to see much stricter regulation of charities in the UK. I don't mean the big ones so much, who are open to more publicity and therefore scrutiny, but the small charities run by a small group of people who answer to noone. Whilst I am sure the vast majority of these are run by hard-working individuals who have probably a very personal interest in the work they support, there is so much scope for fraud that I think there should be strict guidelines. Individual salaries and expense should be published for example.

I would even question whether there is actually a need for so many small charities. In my view, the money would be better put in larger pot. How many of these charities are duplicating each others work?

This is a US case, but shows how massive fraud can be operated if the people running it are not 100% honest.

http://www.dailymail.co.uk/news/article-2009788/Bosses-used-breast-cancer-charity-personal-cash-machine-9m-scam.html

Here's Bono's charity taking in £9.6 million, and paying out 1.8% to causes:

http://www.dailymail.co.uk/news/article-1314543/Bonos-ONE-foundation-giving-tiny-percentage-funds-charity.html

Personally, I only give to established charities and two highly regarded local ones. I don't give to NSPCC because I think they spend too much advertising -'raising awareness' - and not enough on doing stuff. £90 million pounds in income last year - £15 million on campaigns.

http://www.telegraph.co.uk/comment/telegraph-view/3588103/NSPCCs-wrong-priorities.html

hollydays

I know perfume does fetch good money,so its very sought after,not sure that is an indication of anything suspect though.I volunteer for a local charity,luckily I have the time to do this,and that way I find out about the way things are done.Sometimes I dont like the way some things are done,the public should only give things direct to local charity shops to be safe.

There is only 1 case study on this site.
There is no human story "why we set up the charity", there is a picture of a lovely little boy with encephalitis,who we wish well.If this org is supporting children,hopefully there will be established organizations who will be giving their details to parents in crisis,but where are they.
keep up the good work, OP

hybernia

trumpton wrote: »

I would not be happy with those accounts.

I would like to see much stricter regulation of charities in the UK. I don't mean the big ones so much, who are open to more publicity and therefore scrutiny, but the small charities run by a small group of people who answer to noone. Whilst I am sure the vast majority of these are run by hard-working individuals who have probably a very personal interest in the work they support, there is so much scope for fraud that I think there should be strict guidelines. Individual salaries and expense should be published for example.

I would even question whether there is actually a need for so many small charities. In my view, the money would be better put in larger pot. How many of these charities are duplicating each others work?

This is a US case, but shows how massive fraud can be operated if the people running it are not 100% honest.

http://www.dailymail.co.uk/news/article-2009788/Bosses-used-breast-cancer-charity-personal-cash-machine-9m-scam.html

Here's Bono's charity taking in £9.6 million, and paying out 1.8% to causes:

http://www.dailymail.co.uk/news/article-1314543/Bonos-ONE-foundation-giving-tiny-percentage-funds-charity.html

Personally, I only give to established charities and two highly regarded local ones. I don't give to NSPCC because I think they spend too much advertising -'raising awareness' - and not enough on doing stuff. £90 million pounds in income last year - £15 million on campaigns.

http://www.telegraph.co.uk/comment/telegraph-view/3588103/NSPCCs-wrong-priorities.html

Thank you so much for that information, trumpton. And yes, I share your concerns.

Where any charity is concerned, it must surely be a question of provenance that is important. But I don't know to what extent the Charity Commission even bothers to look into this -- actually, the more I learn about the Charity Commission, the less impressed I become.

Little Treasures Children's Trust makes the kind of sweeping statements about the plight of terminally ill and / or disabled children across the UK that the impression is given of authoritative knowledge, expertise and experience.

But nothing in the charity's documents filed with the Charity Commission gives any indication as to the background of the Rowbothams and Ratcliffes who seem to be at the centre of everything.

One would assume they have expert medical knowledge or experience in social work at the very least. But as details about them are not divulged, and as no information is provided on the website as to the medical and / or professional qualifications of the people employed, the charity's competence is left open to question.

We do not know who set it up. We do not know what their reasons were. We do not know how competent the charity is or the qualifications of its staff to assume the role they claim to have of being a resource used by doctors and parents and hospitals.

WHY NOT????

hybernia

Just a quick update for anyone concerned about charity clothing collections and charities in general.

Due to our own ignorance, we hadn't previously realised that a registered charity, and a registered charitable trust, are pretty different animals, and that the word "Trust" in a title has a specific meaning.

Basically it means that the charity has no members, so has no need to produce an Annual Report each year for members' benefit, nor to hold an Annual General Meeting each year at which it is accountable to members.

A charitable Trust is a three-way operation: a donor provides it with funds; Trustees (who may be the originating donors) are then 'trusted' to look after how those funds are spent on recipients.

There's nothing wrong with this, but it does seem odd to us that any charity which decides to run as a Trust (and so is, essentially, a private organisation) then seeks public support. If it wants that kind of support, then why isn't it public?

A charitable Trust can certainly keep the public updated about who runs it, their qualifications and experience, and the qualifications and experience of those it employs. A charitable Trust can also with equal ease keep all those who have donated to it or supported it up to date with news of current activities, successes, and expenditure on projects.

But that is at the discretion of the Trustees -- who, in the case of a charitable Trust, can be considerably fewer in number than is the norm for a 'public' charity.

Little Treasures Children's Trust seems to us to be notably deficient in how it explains itself and its work to the public. It appears to think it is enough to run an out-of-date website stuffed full of text ranging from the vague to the pious, and inconsistent at that (incidentally, the 'blog' is the worst we've ever read, and the comments posted on it, excruciating.)

The only detailed information it provides is to the Charity Commission and as the most recent information from this Trust was to year ending January 31st 2010 it is anything but topical.

We are inviting our Local Authority to look again at the question of essentially private charitable trusts being given licenses to do public door-to-door clothing collections.

We would wish the Council not to licence any charity unless it is puiblicly run -- i.e., is open to public membership -- and is able to furnish the Council with at least two Annual Reports which not only detail the financial history in clear English, but also contain text and photographs relating to who is managing and staffing the charity, and the cases it has dealt with.

We are also asking the Council to seek proof that any charity which claims to be working "nationwide" is able to demonstrate that it is doing just that and is both active in and relevant to the area in which we live.

We wish Little Treasures Children's Trust all the best with its continuing work but have to say that that's one charity clothes collection bag we won't be filling.

theartfullodger

Got an apparently begging plastic envelope through the door today from these apparently/possibly scamming ELT/ "Little Treasurers Childrens Trust".

Let's be clear. The clothes are being collected by ELT clothing (a company... not a charity..) who claim to support "Little Treasures".. (a charity...). Little Treasures may well be an OK charity (always difficult to tell), but some suspicious persons might wonder more about ELT..

I just spent £1 with companies house and got a copy of ELT's accounts.. Their turnover was £6.6MILLION plus last year.... and their accounts do not appear to mention any donation to charity... (funny, wouldn't you want to say what a good job you'd done...).

ELT's turnover was £6,666,621 for the year. Their PROFIT (!!) was £1,309,155 (!!) Not a bad profit margin...

"Little Treasures".. (see
http://www.charity-commission.gov.uk/Showcharity/RegisterOfCharities/CharityWithoutPartB.aspx?RegisteredCharityNumber=1119024&SubsidiaryNumber=0
)
have a turnover of some £189k... and appear to make no mention of ELT in their accounts (funny that.....)

I conclude this might (just might mind..) be regarded by some suspicious persons as a GREAT BIG SCAM and I for one shall not be donating clothes to ELT: Indeed, if I see the driver I shall hope to engage him in a free & frank exchange of views....

Perhaps ELT give little or no ££ (or less than £1k pa..) to "Little Treasures.." from their massive profits...

I could of course be wrong and ELT could be wonderful people: Aye, right...

Little Treasures website has a list of supporters (see..
http://littletreasureschildrenstrust.org/ThankYou.aspx
)

We would like to say a BIG THANK YOU for all the support and wonderful donations received from the following .........

ELT are not on the list: Funny that... Rather strongly implies ELT make no donations, contrary to what their plastic envelope states.. funny that...

The envelope states ELT will donate "at least £50 per tonne of clothes" to Little Treasures trust.. (£5 says it is no more than £51/tonne..)... and ELT state they guarantee (!!) to donate a minimum of £100k each year..That works out at at least 2,000 tonnes of clothes,..... Hmmmn.. wonder how much £££ ELT make on that after they have paid their tiny contriubtion to Little Treasures..

Little Treasures' accounts (to 31/01/2011..) state they received via "clothing collections" £58,349 year to 31/01/2011 & £18,801 year to 31/01/2010.. so if ELT are guaranteeing £100k a year they've some ground to make up..

snowleopard61

Have been very interested to read this. When I received one of these collection bags I concluded it was probably some sort of scam just on the basis that no genuine charity could possibly call itself something so plain icky! Am very impressed with all your research.