The Charity Commission has opened a statutory inquiry into the Alternative Animal Sanctuary, over concerns about third-party fundraising arrangements agreed by the trustees and the adequacy of the charity’s financial controls
The Lincolnshire-based charity offers permanent care to abandoned and neglected animals across England and Wales, and facilitates adoption where possible. According to its annual accounts, it receives income of around £1m annually.
The Commission initially engaged with the charity in November 2016 as part of a proactive project focusing on a sample of charities contracting with third-party fundraising agencies.
As a result, the regulator says it has serious concerns about the charity’s apparent overreliance on the agency and the rate of return to the charity. Further regulatory concerns have been established regarding the significantly high costs and fees of the agreement, the trustees’ original decision to enter into the agreement and the ongoing management of the arrangements by the trustees.
The Commission is concerned about the nature of mailing materials used to elicit donations, and whether the public is aware of the proportion of donations that is consumed by the costs and fees associated with the agreement against what is used on caring for abandoned and neglected animals.
The inquiry will examine the administration, governance and financial management of the charity, and the Commission will publish a report on its findings when concluded.