Danish children's charity accused of misusing funds

COPENHAGEN, Denmark (CNN) -- The children's charity Plan has lost its tax-benefit status after authorities accused it of misusing its funds.

Plan, Denmark, which sponsors under-privileged children in non-developed countries, was told it was no longer a tax-free organisation after tax officials said it had used 80 percent of its money generated from donors for marketing and administration.

It should have spent at least 80 percent of its donations directly supporting children.

The 26,000 contributors to Plan, Denmark, which is part of the worldwide organisation Plan International, will not be allowed to deduct donations from their taxes from December 31, 2000.

Steffen Gulmann, chairman of Plan, Denmark, said: "We will complain about the decision. Do not count on this being the final word."

PLAN also has large offices in the UK and the Netherlands.

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