Fundraising agency CSDM has gone into administration, and its chair, Chris Stoddard, has set up two new fundraising companies that have purchased its assets.
CSDM went into administration on 15 June. The two new companies, CSDM Fundraising Directors and CSDM Strategic Fundraising, have taken on the contracts held by CSDM and will be based in the same office in Ross-on-Wye, Herefordshire, that CSDM was based in.
A spokeswoman for CSDM, whose customers have included Children with Cystic Fibrosis, The Pony Sanctuary, the World Medical Fund and the African Children’s Fund, said its 30 employees would continue to work for the two new agencies and all of its creditors would be paid in full.
She said CSDM Fundraising Directors would operate ‘pay from proceeds’ contracts, under which charities would not pay an upfront cost and would receive a proportion of the money donated in response to the campaign, based on its success.
The spokeswoman said CSDM Strategic Fundraising would run ‘pay as you go’ contracts under which charities would pay for marketing services on an ongoing basis, regardless of the level of donations.
A statement issued on behalf of CSDM said: "The business will continue to operate, and it is envisaged that all creditors will be paid in full. The assets of CSDM have been purchased by companies under the control of Chris Stoddard, CSDM’s chairman, which will continue to operate the business as before. Clients will be unaffected by the structural changes."
The statement said the firm decided to go into administration "because it was the most transparent and regulated way to transfer the business assets to the new companies".
It said: "Because the charity sector has scrupulous requirements with regard to transparency, this strategy was deemed to be the most suitable to the sector’s high standards."