
In 2008, at the start of the financial crisis, it was revealed that the venerable cat charity Cats Protection had potentially lost £11.4 million deposited in Icelandic banks that had gone bust.
As the total amount of money available to Cats Protection was about £34 million, the potential loss represented about one third of all cash assets, as I understand it. It must have been a very worrying time for management because most donations come from legacies in Wills and there is a loyal following which could have been tested. They could lose the trust of donors. There was talk of having to shelve some planned facilities.
At the time there was no news as to what happened. Did Cats Protection manage to recover the money?
A report online at charitystar.org informs me that between 78 and 86% of the money was recovered.
It was expected that in May 2012, £8.2 million would be recovered. I feel better having read that. However, it is also bad news because Cats Protection appear to have lost £3.2 million. This represents about 10% of cash assets, a very substantial proportion.
I must have had an impact. I wonder if this is the reason for the recent story about apparent cutbacks and closure of some branches, which I reported on.
If the two stories are connected it is shame because the reason why Cats Protection deposited such a large percentage of funds in Icelandic banks was because the returns (the interest) was very attractive.
However, when interest rates are attractive and the banks are foreign some caution is required and it appears that this was not the case.
Donations from people to charities should be invested in highly secure investments and deposit accounts which are absolutely solid.
There is never a justification for taking even the slightest risk with donated funds.
Note: I have nothing but the utmost respect for Cats Protection. I am just reporting cat news. However, within the organisation I am bound to respect the volunteers at the front line more than senior management. It is just my preference.
Yes, RuthAKA, I bullied Michael into reinstating the archives section here. I threatened to wave my magic wand and turn him into a mouse for Charlie.
lol I’m glad she did Michael as that must be how I eventually found the article I wanted 😉
Ruth Dee made me reinstate the archives! She bullied me 🙂
Not senile Dee I have difficulty finding older articles too if I forget to keep a link.
Been searching for this one for a while today to quote you in a new article I’m working on, which you inspired. Thank you xx
I can’t find the place on the site that will let us go to archives by month like we used to.
Am I senile?
Oh I must have. So much going on here at present I’m meeting myself coming back lol