The co-founder of a charity formerly called Muffin Pug Rescue and her son have been disqualified from holding senior roles at any voluntary organisation after an investigation found “an ongoing pattern of lifestyle payments” while they were trustees.
Kristine Lovelady co-founded the charity in 2015 and was its only trustee alongside her son, Declan Poole, from April 2019 to February 2022.
In its statutory inquiry report, published today, the Charity Commission said that this meant the charity did not have enough trustees during the almost three-year period and was unable to manage conflicts of interest.
It found numerous instances of non-charitable expenditure made from the Muffin Pug Rescue’s bank account during that period, including a Rolex watch costing £7,000 which was purchased in Poole’s name.
Investigators also found payments to clothing stores, food delivery companies, restaurants, and jewellery shops from the charity’s bank account.
“This expenditure represented an ongoing pattern of lifestyle payments that clearly benefitted both Kristine Lovelady and Declan Poole who were the only trustees in control of the charity’s funds at the time the expenditure was made,” the report says.
The charity has a new board of trustees and changed its name last year to Pug Life Rescue “to mitigate the reputational damage”.
‘Unacceptable’ financial risk
The inquiry concluded that Lovelady and Poole had breached their trustee duties and responsibilities in failing to avoid conflicts of interest or manage the charity’s financial affairs and resources with care and skill.
It found they also failed to keep adequate financial records for the charity, and exposed it to “unacceptable” financial risk due to their failure to adequately manage the resources of the charity.
The commission permanently removed Lovelady and Poole from the charity in May 2023, which both unsuccessfully appealed.
Lovelady and Poole are now disqualified from being a trustee or senior manager of any charity, under section 178 of the Charities Act.
The commission also made an order in May 2023 to direct the charity’s bank to remove Lovelady and Poole from the bank mandate.
“Following the removal of Kristine Lovelady and Declan Poole as charity trustees, the new trustees have continued to operate the charity and have been working to rectify the issues at the charity,” the report says.
“The charity is now up to date with its accounting information, and robust financial controls and policies have been put in place.”
‘Difficult time for the charity’
A spokesperson for the charity said: “The Pug Life Rescue trustees remain committed to the charity's mission statement, rescuing pugs and pug crosses across the UK.
“We are pleased that the Charity Commission inquiry has concluded so that the charity can continue to move forward.
“Pug Life Rescue is run by volunteers and it has been a difficult time for the charity. We would like to thank all our volunteers and supporters for their continued support.”
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