Photograph by Elliott Brown
Comic Relief has defended its policy of investing some of its funds in arms manufacturing, tobacco, and alcohol firms.
A BB CPanorama investigation found that the charity invested £630,000 of the money it raised in leading UK weapons manufacturer BAE Systems, whilst also claiming to help “people affected by conflict”.
Other investments which seem at odds with its charitable commitments include a £3 million investment in the tobacco industry, despit committing money to fight the against tuberculosis, and £300,000 invested in the drinks industry despite aiming to reduce alcohol misuse and abuse.
Panorama contends that the charity could have generated more money from investing in so-called “ethical funds”, but Comic Relief has said that they would not limit their investments in this way as it could impact the amount of money it raises. They also refused to reveal the current investments.
Responding to the allegations, Comic Relief published a statement saying:
To fulfil our legal obligation, Charity Commission guidelines are clear that charities are required to maximise returns on money in their care. For Comic Relief, because the range of issues we support is so broad, ethical screening would significantly limit our ability to invest as well as seriously increase financial risk.
Therefore ethical screening would have left us unable to meet both our legal and moral obligation to maximise returns and look after the money in our care with an appropriate level of risk. Instead we put the money into large managed funds, like many other leading charities and pension funds. We do not invest directly in any individual company. We believe this approach has delivered the greatest benefits to the most vulnerable people.
This policy has achieved strong returns over the years, which have helped Comic Relief cover its running costs, without having to use any of the money donated directly by the public. This is a complex area, with many important considerations, and we keep it under constant review.
Panorama: All in a Good Cause will be shown on BBC One tonight at 22:35 BST
