Naomi  was accused of using charity funds for luxury hotels and spas 

Supermodel Naomi finds herself at the center of controversy as she faces accusations of mismanaging her charity Fashion for Relief. The allegations include misusing charity funds for personal expenses, such as spa treatments and luxury hotel stays. In response to these findings, Naomi  was banned from acting as a charity trustee in England and Wales for five years.

The three-year investigation revealed the charity’s mismanagement

On September 26, after a three-year investigation, the Charity Commission for England and Wales revealed serious financial misconduct within Fashion for Relief, a charity founded by Naomi in 2005. Only 8.5% of this charity’s total expenditure from 2016 to 2021 was used for charitable purposes. This is a shockingly low rate for a charity that raised almost £4.8m in that period through fashion events and galas. Of this amount, just £389,000 went to the charity’s partner organisations.

The commission’s findings were alarming, saying charity funds were used for lavish expenses, including first-class flights, luxury hotel rooms in Cannes, spa treatments and even expenses tobacco – all to Naomil’s benefit.

Lavish spending is justified by fashion for relief

Fashion for Relief defended its spending, claiming that hotel costs were often paid for by donors and not by the charity itself. However, the Charity Commission found no evidence to support this explanation. As a result, Naomi was banned from being a charity commissioner in the UK for five years, a blow to her reputation as a philanthropist.

Naomi’s reaction to the accusations

Responding to the allegations, Naomi expressed deep concern. She denied being directly involved in the charity’s management, saying legal staff handled day-to-day operations. Naomi told the Associated Press, “I am extremely worried about these findings. I do not personally manage my charity but have delegated those responsibilities to legal staff. We are currently investigating the situation to find out what happened.”

She also affirmed her commitment to charity work, emphasizing that every penny she raises goes to charity. Despite her denial of any wrongdoing, the accusations have left a dent in her philanthropic image.

Trustees are also under scrutiny

The investigation doesn’t just focus on Naomi. One of the charity’s trustees, Bianka Hellmich, was found to have illegally received £290,000 from the charity for consulting services. Hellmich was banned from serving as a trustee for nine years. Another trustee, Veronica Chou, was also involved and is now banned from operating for four years.

Financial chaos and poor record keeping

Complicating the charity’s problems, Fashion for Relief was found to have serious financial mismanagement and record-keeping failures. The Charity Commission found that the charity did not keep appropriate records, such as receipts, invoices or meeting minutes. Additionally, the charity has no full-time staff, relying on outside consultants to handle administrative and accounting tasks, contributing to the chaos.

In March this year, Fashion for Relief was dissolved and removed from the charity register. The commission reported that around £344,000 had been recovered and a further £98,000 had been secured. The money was redistributed to two other charities and used to settle outstanding debts, marking the official end of Fashion for Relief’s operations.

Naomi founded Fashion for Relief in 2005 after Hurricane Katrina. The charity’s mission is to unite the fashion industry to fight poverty, improve health and advance education by providing resources for global disasters. Over the years, the charity has held fashion shows and fundraising events in major cities such as New York, London, Moscow and Cannes, reportedly raising more than $15 million for charitable activities.

Despite these good intentions, recent revelations have cast a shadow over the charity’s legacy. What was once seen as a charitable effort is now embroiled in accusations of financial mismanagement, damaging the charity’s reputation as well as Naomil’s standing in the world of philanthropy.

The case of Naomi and Fashion for Relief highlights the importance of transparency and accountability in charities. Although the charity was initially established with noble intentions, a lack of proper financial management and oversight led to its demise. As this scandal continues to unfold, it serves as a reminder of the responsibilities that come with managing charitable funds and the potential consequences of mismanagement.