Stoke Air Ambulance CIO, which has previously fundraised in Stone, is to close and begin an orderly winding up process, months after breaches were found in its fundraising and the Charity Commission opened a statutory inquiry.
The trustees announced the decision on Tuesday 18 August, saying they had reviewed the charity’s position and explored options for its future before concluding that plans to develop an operational air ambulance service should no longer continue.
The charity is separate from Midlands Air Ambulance Charity, which operates an established air ambulance service covering Staffordshire and other parts of the Midlands.
Trustees decide to close charity
In their announcement, Stoke Air Ambulance trustees said they had considered challenges arising from regulatory intervention alongside significant practical, operational and financial difficulties involved in developing a sustainable service.
The trustees said
“The trustees have concluded that it is no longer in the best interests of the charity to continue pursuing its objectives”
They said the most appropriate course of action was now to wind up the charity and ensure its remaining assets continued to be used for charitable purposes.
Fundraising breaches found earlier this year
The decision comes just over six months after the Fundraising Regulator published the findings of an investigation into Stoke Air Ambulance.
As ALBOS reported in February, the regulator found the charity had breached the Code of Fundraising Practice through misleading fundraising material.
At the outset of its investigation, Stoke Air Ambulance did not have access to an aircraft or an established operational base and did not employ clinicians.
The regulator concluded that text and images on its website, taken together, did not make that position sufficiently clear and potential donors could reasonably have believed their donations were supporting a working air ambulance service.
It also found that the charity had made statements suggesting other air ambulance charities were less responsive to emergencies around Stoke, without evidence to support those claims.
Another webpage encouraged people using payroll giving to change donations from other similar charities to Stoke Air Ambulance.
Further breaches related to claims that an aircraft would fly or land at local fundraising events when the charity did not have the means to fulfil those promises.
The regulator did not find enough evidence of problems with the charity’s face to face fundraising to consider that part of the complaints further.
Charity Commission inquiry
Separately, the Charity Commission opened a statutory inquiry into Stoke Air Ambulance CIO on 6 January following regulatory concerns about the charity’s administration.
The inquiry was set to examine whether trustees were complying with their legal duties, including the management of potential conflicts of interest and possible private benefit to trustees or connected individuals.
It was also examining how much of the charity’s income was being applied exclusively to charitable purposes, its fundraising arrangements and its ability to further its charitable objectives, including its business and strategic planning.
Stoke Air Ambulance’s closure announcement does not say what will now happen to the statutory inquiry.
Midlands Air Ambulance responded to regulatory action
Midlands Air Ambulance Charity responded to the regulatory action against Stoke Air Ambulance when the findings were published in February.
It made clear that Stoke Air Ambulance was a separate organisation and was not connected to Midlands Air Ambulance Charity.
At the time, Midlands Air Ambulance said
“We welcome the actions taken by both regulatory bodies.”
It said strong regulatory oversight was important for maintaining public confidence and protecting donors, while adding that it would not comment further on the specifics of a case involving an external organisation.
As of Tuesday evening, Midlands Air Ambulance does not appear to have issued a further public statement following Stoke Air Ambulance’s announcement that it is to close. Its latest published news item is dated Monday 17 August.
Previous fundraising in Stone
Stoke Air Ambulance has previously fundraised in Stone.
When ALBOS reported on the regulatory findings in February, Stone residents had also contacted us saying they had been encouraged to redirect donations from other air ambulance charities.
What happens to donations
Stoke Air Ambulance says it has taken steps to cancel all existing direct debit arrangements with immediate effect.
Donors do not need to take any action and no further donations will be collected while the winding up process is underway.
After outstanding liabilities and the costs of closing the charity have been paid, trustees say any surplus funds will be distributed to local charities whose purposes are similar to, or fall within, those of Stoke Air Ambulance CIO.
The announcement does not say how much money is expected to remain or identify the charities which could receive it.
Trustees say further updates on the winding up process and the distribution of the charity’s remaining funds will be published as matters progress.
Full statement:
IMPORTANT ANNOUNCEMENTIt is with great regret that the trustees of Stoke Air Ambulance CIO announce that they have taken the decision to close the charity and commence an orderly winding-up process.
This has been an exceptionally difficult decision. Since the charity was established, trustees, volunteers, supporters, staff and donors have worked towards a shared ambition of developing an air ambulance service to benefit people across Stoke-on-Trent and the surrounding area. We remain enormously grateful to everyone who has supported that vision.
Over an extended period, the trustees have carefully reviewed the charity’s position and explored a range of options for its future. In doing so, they have had to consider the challenges arising from regulatory intervention, together with the significant practical, operational and financial difficulties involved in progressing plans for a sustainable and viable operational air ambulance charity.
Having undertaken that review and taken appropriate professional advice, the trustees have concluded that it is no longer in the best interests of the charity to continue pursuing its objectives through the development of an operational air ambulance service.
As charity trustees, we have a duty to act responsibly and in the best interests of the charity and its beneficiaries. We believe that the most appropriate course of action is therefore to wind up the charity in an orderly manner and ensure that its remaining assets continue to be used for charitable purposes.
Following payment of all outstanding liabilities and the costs associated with the winding-up process, the trustees intend that any surplus funds will be distributed to local charities whose purposes are similar to, or fall within, those of Stoke Air Ambulance CIO. In this way, the funds generously donated by supporters will continue to be applied for the benefit of local communities and charitable causes aligned with the charity’s aims.
As part of this process, the charity has taken steps to cancel all existing direct debit arrangements with immediate effect. Donors do not need to take any action. No further donations wll be collected whilst the winding-up process is underway.
We appreciate that this announcement will be disappointing for many people who have supported the charity over the years. The trustees share that disappointment. However, after careful consideration of all relevant factors, we believe this decision represents the most responsible way forward.
We would like to place on record our sincere thanks to every donor, fundraiser, employee, volunteer, supporter and partner organisation that has contributed to Stoke Air Ambulance. Your commitment and generosity have been greatly appreciated.
Further updates regarding the winding-up process and the distribution of the charity’s remaining funds will be published on this website as matters progress.
The Trustees of Stoke Air Ambulance CIO
