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What went wrong at Kids Company? Kids Company closure: What went wrong?
(4 months later)
High-profile charity Kids Company closed amid a row about funding and with its performance and management under close scrutiny. Its founder has said there was a "malicious discrediting campaign" against the charity, while Prime Minister David Cameron said he was "sad" it had closed. High-profile charity Kids Company closed amid a row about funding and with its performance and management under scrutiny.
So what went wrong?So what went wrong?
What happened to Kids Company?What happened to Kids Company?
The charity - which relied on individual donations and government grants - said it closed due to a lack of funding. When Kids Company closed in August 2015, the charity said its finances had become stretched because of the number of children "pouring" through its doors for help. But donors had been steadily withdrawing support, alarmed by stories of alleged mismanagement.
Kids Company said the funding crisis was caused by the number of children "pouring through our doors" for help, and by "as yet unsubstantiated allegations" - which it said stopped donors giving money. Earlier that summer, the charity had said it wanted to restructure and had sought new funds from the government and donors.
Those allegations included concerns over the safeguarding of young people. But it closed, with ministers saying they wanted to recover a £3m grant they had given to the charity a week before.
The charity had said it planned to restructure and had sought funds from the government and donors. Founder Camila Batmanghelidjh said a private donor, who had pledged to match the government grant, pulled out after hearing the Metropolitan Police were investigating abuse claims at the charity.
But it closed on 5 August, with ministers saying they wanted to recover a £3m grant given a week before. In January of this year, the police investigation concluded after finding no evidence of criminality.
What was Kids Company?What was Kids Company?
Kids Company was founded in 1996 by Camila Batmanghelidjh in south London. Founded in 1996 in south London, it provided practical, emotional and educational support to up to 36,000 deprived and vulnerable inner-city children and young people.
It provided practical, emotional and educational support to deprived and vulnerable inner-city children and young people, in London, Liverpool and Bristol. It employed more than 600 people, with high-profile supporters including Prime Minister David Cameron.
Up to 36,000 vulnerable children and young people received support and Kids Company employed more than 600 people. When it closed, Kids Company said 11 centres in London and Bristol and an outreach project in Liverpool had shut their doors, and its work with more than 40 schools had ended.
Its high-profile supporters included Prime Minister David Cameron.
Who is Camila Batmanghelidjh?
Born into a wealthy family in Iran, she arrived in England aged 12, speaking little English. She went to a private school, Sherborne Girls, in Dorset.
She gained a first-class degree from Warwick University then trained as a psychotherapist in London before founding Kids Company in 1996. She was its chief executive for 19 years.
Ms Batmanghelidjh has won an array of accolades and awards, including honorary degrees and fellowships from universities including UCL and the Open University. She was also appointed CBE.
She was listed among the UK's most powerful women by BBC Radio 4's Woman's Hour in 2013.
What was the impact of the closure?
Kids Company said 11 centres in London and Bristol and an outreach project in Liverpool had closed, and that its work with more than 40 schools in London and Bristol had ended.
The day after its closure, the government held talks to draw up emergency plans to support children affected.The day after its closure, the government held talks to draw up emergency plans to support children affected.
It said it had met with local authorities, charities, youth clubs and other organisations to divert children to other services. Who is Camila Batmanghelidjh?
Bristol City Council said it had reopened drop-in services for young people in the city. Born into a wealthy family in Iran, she arrived in England aged 12, speaking little English, and went on to gain a first-class degree from Warwick University.
After training as a psychotherapist, she founded Kids Company in 1996 and was its chief executive for 19 years.
Ms Batmanghelidjh was appointed CBE and listed among the UK's most powerful women by BBC Radio 4's Woman's Hour in 2013.
Kids Company closure timelineKids Company closure timeline
Why are the police involved?
The Metropolitan Police opened an investigation into claims that details of incidents involving young people who used the charity had not been passed to police.
The investigation, which is still ongoing, is believed to have been triggered by testimony from a former employee given to a BBC Newsnight and BuzzFeed News investigation.
The charity said it always met its obligations to report crimes.
Ms Batmanghelidjh said a donor who had offered £3m pulled out when they learned of the allegations.
What other investigations are being held?
In September the National Audit Office said it would be investigating the grounds for awarding public money to Kids Company and how grants were monitored. It will also look at other government funding the charity received over the past decade.
The NAO is due to report its findings in the autumn.
The charity is also the subject of a statutory investigation by the Charity Commission and an inquiry by the House of Commons Public Administration and Constitutional Affairs Committee.
What did the charity say?
Ms Batmanghelidjh rejected claims of financial mismanagement.
She said Kids Company had become "a football for the media and the civil servants".
Some people in government wanted the charity to "disappear" and there had been a "malicious discrediting campaign", she added.
She told the BBC that Kids Company had been subjected to a "trial by media" based on "rumours and conjectures".
What was the reaction to its closure?
Mr Cameron said he was "sad" the charity had closed, adding: "It did good work and that's why the government supported it."
Alan Yentob, chairman of Kids Company and the BBC's creative director, said suggestions of financial mismanagement were "complete rubbish".
"We have had problems raising funds, and the demand has been increasing," he said.
Supporters of the charity took part in a march in London shortly after its closure - from Camberwell in south London to Downing Street - calling for a greater awareness of the vulnerable people who used the service.
Why did it become a political issue?Why did it become a political issue?
The charity relied heavily on public money. In its last set of published accounts, for 2013, 23% of its income came from central and local government. The government provided £4m. The charity relied heavily on public money. In its last set of published accounts, for 2013, the government provided £4m, about one fifth of its annual £20m funding.
Officials and ministers at the Department for Education are said to have expressed opposition to funding the charity in the past. Former children's minister Tim Loughton said he had raised "serious concerns" over value for money when he was in government from 2010 to 2012.
In July it was revealed the that Cabinet Office had raised concerns about how the charity was being run and how it was spending its money. The Cabinet Office's lead official, Richard Heaton, also wrote to ministers on 26 June last year informing them he thought the £3m grant would be poor value for money.
Government officials told Kids Company it would not receive £3m of funding unless Ms Batmanghelidjh was replaced as chief executive and the management was restructured. A senior figure involved in funding talks said any concerns raised were "all overridden by Number 10", claiming the prime minister had been "mesmerised" by Ms Batmanghelidjh.
Ms Batmanghelidjh agreed to move roles and the money was paid. But the Cabinet Office then said it planned to recover the grant because it believed the conditions attached to the use of the money were not met.
What was the government's £3m grant for?What was the government's £3m grant for?
The grant had been intended for a "transformation and downsizing plan" that would support the charity as it reformed itself, but the BBC understands £800,000 was used to pay its monthly wage bill. The grant had been intended to support a "transformation and downsizing plan" for the charity, but the BBC understands £800,000 was used to pay its monthly wage bill.
It is not clear what conditions the charity understood were attached to the grant.It is not clear what conditions the charity understood were attached to the grant.
The Cabinet Office's lead official, Richard Heaton, wrote to ministers on 26 June asking for a "ministerial direction" before making the payment. The money was paid, but the Cabinet Office subsequently said it would recover it because it believed the conditions attached to its use were not met. It has not yet received any of the money back.
He said he thought the grant would be poor value for money, and sought written confirmation that they wanted him to go ahead anyway. Why did the police become involved?
Ministers Matthew Hancock and Oliver Letwin said the funding should be given after the leadership changes, as the charity had a "realistic prospect of long-term viability". In July 2015, the Metropolitan Police opened an investigation into claims that details of incidents involving young people who used the charity had not been passed to police.
What have politicians said? The investigation was closed in January 2016 after officers said they carried out "extensive inquiries" into claims of physical and sexual abuse but found no evidence to reach the threshold for criminal prosecution.
Former children's minister Tim Loughton said he had raised "serious concerns" over whether the charity gave value for money when he was in government from 2010 to 2012. Kids Company always denied the claims and said it always met its obligations to report crimes.
A senior figure involved in funding talks has said any concerns raised were "all overridden by Number 10", claiming the prime minister had been "mesmerised" by Ms Batmanghelidjh. What other investigations were held?
Labour called for the National Audit Office to investigate the flow of taxpayer money to Kids Company. In October, the National Audit Office reported the charity had received at least £46m of public money despite repeated concerns about how it was run.
The Cabinet Office said the government supported Kids Company "to help it deliver services for vulnerable young people and so we are disappointed it has been unable to move to a sustainable financial position". It said there was a "consistent pattern" of it receiving grants after claiming it would close without them. The NAO also said got more Department for Education money than any other charity in 2011.
The charity is also the subject of a statutory investigation by the Charity Commission and an inquiry by the House of Commons Public Administration and Constitutional Affairs Committee.
What has the charity said?
Ms Batmanghelidjh said Kids Company had become "a football for the media and the civil servants", and there had been a "malicious discrediting campaign".
She told the BBC that Kids Company had been subjected to a "trial by media" based on "rumours and conjectures".