Investigation into aid trip charity as big- hearted students lose thousands
PROBE LAUNCHED AS BODY’S COLLAPSE LEAVES ADVENTURERS BADLY OUT OF POCKET
Watchdogs are investigating after students lost their deposits and thousands of pounds worth of donations after the collapse of an aid trip charity.
Childreach International offered young people the chance to go on trips abroad in return for their fundraising efforts. Each student paid a registration fee of £350 and then had to raise £3,500 to go on the trips arranged by travel company Rare Adventures.
These included an Amazon trek, a visit to the Inca citadel of Machu Picchu in Peru or building an education centre in Tanzania.
Childreach used the money it raised to help schools in those countries, and students would visit them.
But the charity and travel company went bust before students were due to go away this summer as it emerged they shared the same chief executive, Firoz Patel.
The Childreach website claimed money had been refunded, but students say they are owed at least £27,000 in lost deposits and nearly £58,000 in funds they raised.
Kelsea Stewart, 22, a psychology student at the University of Aberdeen, contacted fellow fundraisers across the UK after the charity collapsed.
She said: “At least 10 people I spoke to had reached their fundraising target.
“There’s been no clarity over where the money goes and I’ve noticed that over the last couple of years they don’t actually publish how much they have raised or where it has gone.”
Holly Lazenby, 22, a fourth-year student at the University of Aberdeen, said she was unaware that the charity and the travel company were linked.
She said: “It was only when we did some digging into the company and their reports that we realised the money problems and the fact that many of those who worked at the travel company were on the board of the charity.
A statement on Childreach International’s website said the charity closed due to “financial difficulties”.
It claimed all donations were “currently being held in trust” by online fundraising service BT MyDonate and would be refunded to donors “in the coming weeks.”
But BT MyDonate said: “All money received after the 19th of January has been refunded to donors.
“Anyone who has not received a refund we urge to please get in touch with us.”
In a statement on its website, which has since been shut down, Rare Adventures said the decision of Childreach International was “devastating” and it had no choice but to close.
It said: “Rare Adventures have not received any payment whatsoever from Childreach International for any student trip in the season 2017/18 and have no prospect of receiving such, given the insolvent status of Childreach.”
It is unclear how much of the funds raised by students have been donated to charity.
The Charity Commission, the UK government’s regulatory body, said that Childreach International donated 61% of its annual income to charities.
It said: “The Commission is engaging with Childreach International to establish how the charity’s funds were raised and whether the trustees have complied with their legal responsibilities.
“The trustees continue to cooperate and we are analysing information to determine if regulatory action is required.
“We are also looking into how the charity’s partnership with Rare Adventures was managed, following concerns that conflicts of interest may have hampered the trustees’ ability to act in the charity’s best interest.”
Rare Adventures claimed to comply with the British Standard for adventurous activities. However, it held no official certificate.
It did not hold an ABTA or ATOL security licence which travel companies offering package deals must provide.
A National Union of Students spokesperson said: “Students donate a tremendous amount of time and money to support the causes they care about – often making significant sacrifices to do so.
“That’s why it’s such a concern to learn that hundreds are out of pocket. There is clearly an urgent need for transparency for those students on the status of the funds they have worked so hard to contribute”.
The Sunday Post contacted Firoz Patel at his home in London.
He said: “I resigned from the charity in September. Contact the board of trustees if you want to speak about the charity. I’m not going to make any further comment.”
Mr Patel declined to comment on the charity’s involvement with Rare Adventures.