Age charities beware. The rules of the market apply to everybody

The Times reported that Age Concern, the charity for elderly people, is at risk of losing £3 million on a joint venture with Norwich Union selling long-term care and life assurance products.

Age Concern Financial Partnerships has run up losses of at least £1.3 million since it was set up in 1999. Age Concern additionally faces repaying £1.7 million in start-up funds to Norwich Union. The funds must be repaid if financial targets are not met.

The reasons for this seem to be a mixture of the high running costs and the move away from Insurance-based care products, which provide funds to cover the cost of nursing home or medical care in old age.

As the balance of these of charities moves towards their commercial activities – which seems to be happening - then mistakes will be made. Try telling that to somebody standing in the rain asking for contributions. Dick Stroud www.20plus30.com