Donations from the highly controversial Presidents Club fundraising event are a ‘clear cut case of harm’ on charities and the actions of trustees returning funds should be commended, lawyers have said.

Comments from law firm McCarthy Denning come after the Financial Times reported of allegations of sexual harassment at a fundraising event held by the Presidents Club in London last week.

An undercover reporter from the Financial Times attended the all-male event, held at London’s Dorchester Hotel last Thursday night, where she claimed to have witnessed senior businessmen groping female hostesses.

Following the reports, Great Ormond Street Hospital decided to return donations raised by the event, claiming it was “shocked” to hear of the behaviour at the event.

“We would never knowingly accept donations raised in this way. We have had no involvement in the organisation of this event, nor did we attend and we were never due to receive any money from it," it said in a statement.

“All monies raised in our name go to support vital work. However, due to the wholly unacceptable nature of the event we are returning previous donations and will no longer accept gifts from the Presidents Club Charitable Trust.”

McCarthy Denning head of charities Benjamin James said no matter how good the motives may be to raise money for charity, “there are limits on acceptability”.

“Returning a charitable donation should only be undertaken where the harm to the charity in taking the donation is outweighed by the benefit of the donation can achieve,” James said.

“There has not been such a clear cut case of harm resulting from a donation in many years and the swift action of the trustees of those charities returning the donations can only be commended.

“The reported behaviour of some of the individuals attending the event cannot be considered acceptable in any situation; the actions of a few cannot be described as a person making a pass at someone they find attractive. These reported actions amount to a criminal assault, and action should be taken against those individuals.”

James added that considerable concerns lie around why no one in a responsible position “recognised in advance that there was a problem”.

“Something is very wrong with the concept when, not only are their hostesses for a male only event, but the dress code for them includes any type of instructions on acceptable underwear,” he said.

“It cannot be argued that the actions that arose were not expected as not only were confidentiality agreements put in place there was also a disclaimer.”

The Presidents Club has since decided to close down. In a statement released Wednesday 24 January, trustees of the club said the charity will not be hosting any more fundraising events.

“Remaining funds will be distributed in an efficient manner to children’s charities and it will then be closed,” it said.

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