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10/12/2013
Comic Relief Funds 'Invested In Arms Firms'
A BBC Panorama investigation has claimed that millions of pounds donated to Comic Relief have been invested in funds with shares in alcohol, tobacco and arms firms.
Comic Relief, which claims to use its funds to "deliver the greatest benefits to the most vulnerable people", has raised almost £1bn for worthwhile causes over the years.
The money it receives, is paid out to other charities, sometimes over several years. As a result, the organisation can have millions of pounds at any one time.
It is understood that it also uses a number of managed funds – which invests that money on the charity's behalf, including the stock market.
In an investigation by Panorama, the BBC has said it has discovered that between 2007 and 2009, some of the investments – said to be worth millions – seemingly contradict a number of the charity's core aims.
For example, in its mission statement, Comic Relief says it is committed to helping "people affected by conflict", yet in 2009, the charity had £630,000 invested in shares in weapons firm BAE Systems.
Elsewhere, it claims it is "working to reduce alcohol misuse and minimise alcohol related harm", but the charity had held more than £300,000 in shares with the alcohol industry. A majority of the shares were invested with Diageo.
Comic Relief also appeals for money to fight tuberculosis and has given more than £300,000 to a charity called Target Tuberculosis. Target TB believes that smoking may be responsible for over 20% of TB cases worldwide, but while raising funds in 2009, almost £3m of Comic Relief money was invested in shares in tobacco companies.
According to the BBC, Comic Relief has now changed the way it presents its accounts and as a result, it is currently impossible for the public to tell which funds the charity currently invests in.
Comic Relief refused to comment on whether any money invested since 2009 is in shares in alcohol, arms, or tobacco companies, but said its approach is within regulatory guidelines.
In a statement, they said: "We put the money into large managed funds, as many other leading charities and pension funds do.
"On balance, we believe this is the approach that will deliver the greatest benefits to the most vulnerable people."
Furthermore, Comic Relief co-founder and former chair of trustees Peter Bennett-Jones issued a statement saying the investments were made according to legal guidelines stating that they must yield the best possible financial return.
He added: "The Charity Commission guidance is quite clear that trustees must invest for the best possible financial return, while taking a level of risk appropriate for money in their care. They should only adopt an ethical investment approach with specific justification and not on the grounds of individual moral views.
"This sounds counterintuitive, but it is the law. The broader the issues a charity supports the more difficult it is to justify ethically screened investment – as the range of industries that might need to be excluded would seriously impact on the fundamental requirement to maximise returns.
"And for Comic Relief, whose aim is to fight poverty and social injustice, the breadth of issues we seek to address is significant."
(JP/CD)
Comic Relief, which claims to use its funds to "deliver the greatest benefits to the most vulnerable people", has raised almost £1bn for worthwhile causes over the years.
The money it receives, is paid out to other charities, sometimes over several years. As a result, the organisation can have millions of pounds at any one time.
It is understood that it also uses a number of managed funds – which invests that money on the charity's behalf, including the stock market.
In an investigation by Panorama, the BBC has said it has discovered that between 2007 and 2009, some of the investments – said to be worth millions – seemingly contradict a number of the charity's core aims.
For example, in its mission statement, Comic Relief says it is committed to helping "people affected by conflict", yet in 2009, the charity had £630,000 invested in shares in weapons firm BAE Systems.
Elsewhere, it claims it is "working to reduce alcohol misuse and minimise alcohol related harm", but the charity had held more than £300,000 in shares with the alcohol industry. A majority of the shares were invested with Diageo.
Comic Relief also appeals for money to fight tuberculosis and has given more than £300,000 to a charity called Target Tuberculosis. Target TB believes that smoking may be responsible for over 20% of TB cases worldwide, but while raising funds in 2009, almost £3m of Comic Relief money was invested in shares in tobacco companies.
According to the BBC, Comic Relief has now changed the way it presents its accounts and as a result, it is currently impossible for the public to tell which funds the charity currently invests in.
Comic Relief refused to comment on whether any money invested since 2009 is in shares in alcohol, arms, or tobacco companies, but said its approach is within regulatory guidelines.
In a statement, they said: "We put the money into large managed funds, as many other leading charities and pension funds do.
"On balance, we believe this is the approach that will deliver the greatest benefits to the most vulnerable people."
Furthermore, Comic Relief co-founder and former chair of trustees Peter Bennett-Jones issued a statement saying the investments were made according to legal guidelines stating that they must yield the best possible financial return.
He added: "The Charity Commission guidance is quite clear that trustees must invest for the best possible financial return, while taking a level of risk appropriate for money in their care. They should only adopt an ethical investment approach with specific justification and not on the grounds of individual moral views.
"This sounds counterintuitive, but it is the law. The broader the issues a charity supports the more difficult it is to justify ethically screened investment – as the range of industries that might need to be excluded would seriously impact on the fundamental requirement to maximise returns.
"And for Comic Relief, whose aim is to fight poverty and social injustice, the breadth of issues we seek to address is significant."
(JP/CD)
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