Efforts to save the charity included making a number of its employees redundant. The charity has now been rescued by another charity, CGL (Change, Grow, Live) meaning that the jobs of Lifeline Project’s remaining 1,300 employees have been saved, and the services they provide will continue.

Lifeline Project follows similar examples of sizeable charities collapsing including the Kids Company in 2015 and 4Children in 2016.

This most recent example further highlights the need for good governance in charities and the very real and direct impact that insufficient internal safeguards can have on employees and service users. Good governance is vital, not just to avoid collapse, but to ensure effective and efficient use of charitable funds. As charities grow this becomes increasingly important and, because a growing charity means growing demands on trustees’ time, it is vital that governance is correctly established at the outset.

Further information

If you require assistance in relation to a governance review of your charity or similar services, please contact a member of our charities team on 0121 200 3242 or charities@anthonycollins.com.  Article by Rebecca Ward, Solicitor and Martin Brown, Trainee Solicitor.