Whitehead will be sentenced at Swansea Crown Court

Angela Lesley Whitehead, 46, from Bolton, but previously from Llanon, Ceredigion, admitted theft from the Little Sunbeams appeal.

Aberystwyth magistrates heard the money was supposed to be used on equipment for a special baby care unit at the town's Bronglais Hospital.

The court was told that she disputed the amount stolen being �14,368.47.

Whitehead will be sentenced at Swansea Crown Court next month.

On Wednesday, magistrates heard how Whitehead had set up the appeal after her granddaughter had been born prematurely in 2003 at Bronglais.

Within a year she had raised �17,015.85, which she placed in a Little Sunbeams account at the Principality Building Society.

The idea had outgrown her capacity to deal with it Solicitor Bryn Roberts

But magistrates were told that the hospital received just �2,386.38. The account is still open and holds �102.88.

Whitehead was eventually arrested in February at Leeds-Bradford Airport by West Yorkshire Police after returning from Spain, the court was told.

Whitehead's solicitor said the Little Sunbeams idea outgrew her capacity to deal with it.

Maggie Hughes, prosecuting, said Whitehead started raising money after she noticed that Bronglais Hospital had "limited facilities" to deal with sick babies.

She said Whitehead had intended to raise �50,000 for Ceredigion and Mid Wales Trust, which runs the hospital, for staff training and specialist equipment.

Within months, the court was told that Whitehead had bought equipment to help train staff for �400, a specialist book costing some �218 and a photo therapy equipment costing �1,768.38.

However, as the months passed, said Miss Hughes, staff at the trust found it increasingly difficult to contact Whitehead and they eventually called in Dyfed-Powys Police earlier this year.

Whitehead set up Little Sunbeams to raise money for a new hospital unit

"She told police that the initial months of fund-raising had left her without employment and she had been concentrating on the charity work six days a week fund-raising and promoting without receiving income," said Miss Hughes.

'Snowballed'

The court heard how Whitehead had spent �2,400 of the money on rent at a property in Leeds and �60 on a car loan.

Miss Hughes added: "The doctors and nurses were deceived into thinking that training and equipment would be supplied."

Bryn Roberts, defending, said his client disputed the total amount stolen of �14,368.47.

"She was caught in a Catch 22 situation," he said. "She was being snowballed with financial assistance, but had no other assistance.

"She was incapable of dealing fully with the matter and the idea had outgrown her capacity to deal with it."

Magistrates in Aberystwyth said they did not have sufficient power to sentence Whitehead.

She was remanded on bail for sentence at Swansea Crown Court on 23 September.