‘Key Lessons’ In One Plus Charity Collapse
Charity regulators have said there are “key lessons” to be learned from the collapse of a major charity and childcare provider last year. One Plus provided a range of services to one-parent families.
The report from the Office of the Scottish Charity Regulator (OSCR) pointed to an apparent lack of “adequate skills” among board members.
It said no single factor was to blame for the collapse of the multi-million pound business. However, it said the running of the charity and its response to funding issues were the main reasons for the collapse.
One Plus was one of Scotland’s biggest charities with a turnover of £11m in 2005. But at the end of 2006 it had an overdraft of £2m which it had been told could not be extended. The charity went into liquidation in January 2007 with debts of £2.27m
The report said while board members were enthusiastic “they did not seem to pay sufficient attention to the business aspects and support structures required to keep expanding services operating effectively.”
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