Major fraud probe launched at RNLI

[onesea]

Major fraud probe launched at RNLI after member of staff arrested

A major fraud probe has been launched at the RNLI following the arrest of one of the lifeboat charity’s employees, the Daily Echo can reveal. Dorset Police have confirmed a 53-year-old Wareham man has been arrested on suspicion of fraud and bailed until next March. Police became involved after the RNLI made a complaint to Action Fraud, the UK’s national centre for reporting fraud and internet crime.

The maritime rescue charity, based in Poole, is remaining tight-lipped about exactly how much money is involved in the alleged fraud – but the Echo understands it could be a considerable amount. It is also believed the relatively long time the suspect has been released on police bail – until March 2015 – signifies the complexity of the investigation.

Both the RNLI and Dorset Police have confirmed a joint probe has been launched. In an official statement the RNLI said: “We can confirm that a member of staff has been
arrested in connection with an alleged criminal offence.

“The RNLI takes any allegations of criminal behaviour very seriously and we are working closely with the police as well as conducting our own internal investigation. “As this is a criminal investigation, we are unable to provide further information at this moment.” Meanwhile, Dorset Police also confirmed: “The RNLI made a complaint of fraud to Action Fraud which was referred to Dorset Police on May 8, 2014, to be investigated. “As a result of the investigation a 53year-old man from the Wareham area was arrested on suspicion of fraud and has been released on police bail until the middle of March, 2015.” Action Fraud is run by City of London Police and the National Fraud Intelligence Bureau.

IT COSTS £385,000 per day to run the Royal National Lifeboat Institution (RNLI), and all of this is donated by generous members of the public. Last year’s national RNLI total income stood at £182.7m, a £16.2m increase on the previous year. The charity is currently financing a number of ambitious new projects, including boathouses and the building of state-of-the art lifeboats. The volunteer organisation’s capital expenditure for 2013 was £48m.

Overall, last year’s running costs worked out at £144.6m. The maritime rescue charity’s people power is comprised 95 per cent from volunteers. They include 4,600 volunteer lifeboat crew and an additional 3,000 shore crew.

Source: Daily Echo

Over to the forum :ambivalence:

 

[chrisbitz]

The maritime rescue charity, based in Poole, is remaining tight-lipped about exactly how much money is involved in the alleged fraud – but the Echo understands it could be a considerable amount.

So by my estimations, that puts the amount somewhere in the range of £10,000 - £25million.

nice reporting!

 

[sailorman]

A £38M surplus on the year

 

[Rigger Mortice]

So by my estimations, that puts the amount somewhere in the range of £10,000 - £25million.

nice reporting!

Odds are that they don't yet know the scale of it. They may have found one or two instances of the fraud but need to go back through the records to establish the full scale of it.

 

[savageseadog]

Wherever there's a bit of money knocking about, there's fraud, the RNLI has a good deal of money lying about. Charities and charity fund raising are a common target as are all types of government funding. Bogus charities are pretty common too, the charities commission is extremely complacent about this too.

 

[Hypocacculus]

Wherever there's a bit of money knocking about, there's fraud

+1

I'm sure the money was "just resting" in his account.

 

[mjcoon]

A £38M surplus on the year

Or perhaps that is the amount of tax. There may be other expenses not included in "running costs"...

Mike.

 

[Tranona]

Or perhaps that is the amount of tax. There may be other expenses not included in "running costs"...

Mike.

Don't pay tax as it is a charity. The difference between income and running costs last year is because much of the additional income was specifically raised to finance the capital expenditure (new bases and big boat building facility). There is a long term capital expenditure plan for new boats which means that income will need to be greater than annual running costs for some years to come. All explained in the Annual Report.

 

[NickRobinson]

""Bogus charities are pretty common too, the charities commission is extremely complacent about this too.""

Harrow and Eton being two examples..........

But back to the RNLI- it seems they have procedures in place- they've gone outside to assist in sorting it and of course, the person isn't guilty as we write.

 

[Bru]

Bogus charities are pretty common too, the charities commission is extremely complacent about this too.

Really? In my experience they are anything but complacent about bogus charities. However, the Commissioners have limited powers and very limited resources. Pretty much their only recourse is to withdraw legal charitable status and then report the organisation concerned to the police if they continue to claim to be a charity

I suspect you may be unaware, or ignoring, the fact that an organisation doesn't need to be a registered charity to carry out "charitable" works (although they won't get the tax relief that registered charities get).

Alternatively you may be indirectly referring to the large numbers of organisations which enjoy charitable status and arguably shouldn't (another poster referred to Eton and Harrow, other often cited examples are political organisations and campaign groups such as Greenpeace and, yes, even the RYA). As it happens, the Commissioners have been arguing with successive governments for over twenty years that the majority of registered charities should not, in fact, be charities. Although this led to the creation of Community Interest Companies, it hasn't (yet at any rate) led to a cull of existing charities and CiCs are a vehicle which only suit some forms of not for profit organisation

 

[prv]

other often cited examples are political organisations and campaign groups

That's surprising. I donate money each month to an organisation that in many ways resembles a charity, but because a big part of its role is lobbying and campaigning, it considers itself ineligible for registered charity status. It's instead set up as a company (I'm not sure of the exact details) and I assumed the same applied to other campaigning organisations.

Pete

 

[Bru]

That's surprising. I donate money each month to an organisation that in many ways resembles a charity, but because a big part of its role is lobbying and campaigning, it considers itself ineligible for registered charity status. It's instead set up as a company (I'm not sure of the exact details) and I assumed the same applied to other campaigning organisations.

Key phrase is "it considers itself ineligible for registered charity status" which doesn't necessarily mean it IS ineligible. That said, there's more than a few registered charities around that if they started from scratch today wouldn't be accepted by the commissioners.

Charitable status is a two edged sword with benefits and (some significant) drawbacks. Not the least of the drawbacks is having the Charity Commissioners poking around your accounts every year and telling you how to run the organisation! For many "charities" the only significant benefit is reclaiming VAT and if the organisation doesn't incur a significant VAT bill being a registered charity may not be worth their while

BY the way, jjust for info I'll point out (again) that most charities are companies and that a company is not necessarily a commercial entity

Your organisation is probable either a Company Limited by Guarantee or a Community Interest Company. Most existing charities (whether registered or not) and many other not for profit organisations are Companies Limited by Guarantee (and require special dispensation to drop "Limited" or "Ltd." from their company letterhead by the way, the RYA is an example thereof)

 

[Angele]

Alternatively you may be indirectly referring to the large numbers of organisations which enjoy charitable status and arguably shouldn't (another poster referred to Eton and Harrow, other often cited examples are political organisations and campaign groups such as Greenpeace and, yes, even the RYA).

I don't think the RYA is a charity. (There is something called the RYA Foundation which is, but that isn't the body to whom we pay our subs).

Please tell me I'm wrong. If I am, then there is 10+ years worth of tax for me to claim back.

 

[savageseadog]

That's surprising. I donate money each month to an organisation that in many ways resembles a charity, but because a big part of its role is lobbying and campaigning, it considers itself ineligible for registered charity status. It's instead set up as a company (I'm not sure of the exact details) and I assumed the same applied to other campaigning organisations.

Pete

Limited companies can be charities. As far as bogus charities go, I had reason to investigate a couple of charities that I had some direct experience of. One was a genuine charity that allowed a rogue individual to run a fake charity operation under its umbrella. The other was a housing association which appears to operate as a great cash cow for its senior execs, I'm not sure what benefits the public get from this "charity". As they say, "Charity begins at home". Private Eye used to have a great deal to say about the RNLI, I don't know if its campaign continues. Anyone who wonders about "charity" shouldn't take my word for it. Google a bit or look at:

http://www.telegraph.co.uk/news/pol...ommission-is-not-fit-for-purpose-say-MPs.html
http://www.civilsociety.co.uk/gover...ffice_to_compile_report_on_charity_commission

 

[mjcoon]

... For many "charities" the only significant benefit is reclaiming VAT and if the organisation doesn't incur a significant VAT bill being a registered charity may not be worth their while

I'm a trustee of a small local charity that considered hard before applying for charitable status. I'm not sure that VAT is relevant, but claiming Gift Aid on donations certainly is.

Mike.

 

[haydude]

Major fraud probe launched at RNLI after member of staff arrested
IT COSTS £385,000 per day to run the Royal National Lifeboat Institution (RNLI), and all of this is donated by generous members of the public. Last year’s national RNLI total income stood at £182.7m, a £16.2m increase on the previous year. The charity is currently financing a number of ambitious new projects, including boathouses and the building of state-of-the art lifeboats. The volunteer organisation’s capital expenditure for 2013 was £48m.

Overall, last year’s running costs worked out at £144.6m. The maritime rescue charity’s people power is comprised 95 per cent from volunteers. They include 4,600 volunteer lifeboat crew and an additional 3,000 shore crew.

Source: Daily Echo

Over to the forum :ambivalence:

They forgot to mention that about a quarter million a year is paid to their manager, which is insulting to that 95% of volunteers.

 

[Sybarite]

They forgot to mention that about a quarter million a year is paid to their manager, which is insulting to that 95% of volunteers.

That amount is exaggerated. It's less than £150k.

 

[Bru]

I don't think the RYA is a charity. (There is something called the RYA Foundation which is, but that isn't the body to whom we pay our subs).

Please tell me I'm wrong. If I am, then there is 10+ years worth of tax for me to claim back.

The RYA is a Company Limited by Guarantee

The RYA itself isn't a registered charity (historically it's a Corporation founded by Royal Charter but that's largely irrelevant today). In a reversal of the usual practice of a charity having non-charitable subsidiaries, the RYA is the sole member of The RYA Foundation which is also a company limited by guarantee and a registered charity

I'm a trustee of a small local charity that considered hard before applying for charitable status. I'm not sure that VAT is relevant, but claiming Gift Aid on donations certainly is..

Quite right Mike, I forgot to mention gift aid (the charity of which I was a trustee benefited significantly from reclaiming VAT, rather less so from gift aid. For other organisations it can be the other way around)