The Cares Family group of six charities will cease operating immediately, due to insolvency, months after its founder stepped aside.
Alex Smith led the group for 12 years before stepping aside in April, when he described it as a “happy organisation confident in itself and more secure than ever”.
However, the board of trustees announced this week that the national organisation and its five local charity members will all close due to financial issues.
The national charity has an annual income of £949,000, according to Charity Commission data, while its five members operating across London, Liverpool and Manchester each had a revenue of between £200,000 and £400,000.
Overall, the charities, which aimed to “build community and connection” in their areas, had a combined income of £2.46m.
‘We simply don’t have the flexibility to significantly reduce our costs’
In a statement, the national charity said “we know this news is sudden and will come as a shock” and that it is “fiercely proud of the work of our charities”.
“The sad reality is that, like many charities, we’re in a desperately difficult fundraising environment. While support for tackling isolation increased during the pandemic, in the current economic climate this has fallen away significantly, with many pressing issues competing for the limited support available,” the statement continues.
It adds: “Unfortunately, many of the greatest strengths of the Cares Family — our advocacy for issues that have long been underappreciated, and our model of investing almost all funding straight into running programmes and projects for the communities we serve — have made it even harder to survive.
“We simply don’t have the flexibility to significantly reduce our costs without making it impossible to deliver against our commitments.”
The statement reveals the board “extensively explored all options, with expert financial and legal advice, and have come to the conclusion that there’s no viable path for the charities that would enable them to continue their work”.
It adds: “This is a very sad day for our staff, the communities we serve, and the many partners we’ve worked with along the way. We’re doing all we can to ensure older and younger neighbours are aware of other sources of support. The board will also explore ways to empower other organisations and community leaders who are interested in building on all that we’ve learned together.
“We’re deeply proud of the work of the Cares Family charities, and hope that the legacy of our work will show in the seeds of connection and community power that we have sown.”
‘Overseeing the closure of the charity you lead is heartbreaking’
Nicola Upton, who took over as chief executive of the Cares Family in August, shared a statement on LinkedIn about the closure.
She said: “As a CEO – especially as one new in post and excited for the potential of a charity doing such great work – overseeing the closure of the charity you lead is heartbreaking.
“When I joined the Cares Family in August this year as CEO, this wasn’t what I anticipated my role would become. Sadly, insurmountable issues have come to light and I’ve spent much of my time working closely with the board to seek any viable alternative to closure, and sadly, there is not.”
Upton said it had been a privilege to lead the collection of six charities and that the Cares Family charities have done “a huge amount of good” over the last twelve years – “we have a lot to be proud of”.
The CEO said: “Whilst personally devastated that we have come to this position, I respect and admire our board of trustees for exploring the options, seeking advice quickly, and taking the tough decision to close all six of our charities.
“I am not the first charity CEO this year to be sharing news like this. I won’t be the last. The challenging economy, rising costs, and a slew of other factors have brought us here.
“The Cares Family leaves a lasting legacy of innovation, creativity, and hope for a better world. I sincerely hope that in some way, in my next role, I can carry that forward.”
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