A CHEPSTOW-based children's charity was wound up after a government watchdog found it had spent most of its money on fundraising and running costs - instead of charity work.

A Charity Commission inquiry found that between November 1997 and March 2002 'The Farm in the Forest' charity had spent 97% of its income on fundraising and administrative costs and had not carried out any charity work.

The Farm in the Forest was registered as a charity in December 1997 to establish and maintain respite and hospice facilities in England for children suffering from terminal or chronic illness.

It also aimed to provide medical and paramedical services for families with children affected and to fund the training of medical staff.

In May 2001, following numerous complaints from members of the public about the method of the charity's fundraising, the commission asked the charity for information on its fundraising activity and why its collectors appeared to have little knowledge of the organisation.

The commission found that the charity had been raising funds since its registration but had not carried out any charitable activity - as there was never enough money left to pay for their intended projects after the cost of fundraising had been deducted.

The charity had employed the services of a professional fundraiser in 2000. During the two years the fundraiser worked for the charity they raised £27,269 and charged £25,463 for their services.

The commission found the charity raised £71,018 from November 1997 until March 2002 and that fundraising and administrative costs for the same period were £69,031.