Charities Regulator Launches Inquiry Into Collapsed Online Donation Service

This week has seen several reports in the media this week about the collapse of Pembroke Dynamic Internet Services Ltd., the company behind the online charitable donation platform, Ammado.

The company was put into liquidation last week by the High Court due to it owning €400,000 in taxes.

The Charities Regulator has today issued a press release noting that it has opened an inquiry and is currently considering the extent to which any issues may arise under the Charities Act 2009.

This action follows reports that as much as €3.8m in donations, made to charities via Ammado (launched in 2005), is unaccounted for. It has emerged that the International Federation of the Red Cross warned its local charities in April 2017 to stop using the online donation platform, as concerns were already mounting at that point.

This week the Irish Red Cross issued a statement on its website in which it sought to reassure its donors and the general public that donations to the organisation have not been affected by issues at Ammado.

"The Irish Red Cross was made aware of issues at the fundraising service provider by the International Federation of the Red Cross (IFRC) in April 2017. The IFRC and many of its national societies, including the Irish Red Cross, had been using the Ammado service since 2011, but last April the IFRC alerted all national societies to business conduct issues with the platform and advised all national societies to immediately suspend their use of Ammado.

The Irish Red Cross took immediate action and closed down its Ammado account."

The Wheel will provide an update on the outcome of the Charities Regulator inquiry when it becomes available.