Cost of fundraising may 'double' after collapse of Fruitful

Charities could have to pay twice as much for street fundraising agencies in the wake of Fruitful Fundraising's demise, a top fundraiser has warned.

Mark Astarita, fundraising director at the British Red Cross, said the collapse of such a big player left charities vulnerable. "Those fundraising agencies that are left will be able to double the price - and at twice the price it will not be worth it for many charities," he said.

Tim Hunter, deputy fundraising director at the NSPCC, which had a contract with Fruitful company the Push Consultancy before it went into administration in May, said charities would worry more about guarding their reputations.

"Increasingly, finance directors are going to think 'how much do we really want to get involved with companies that are here today, gone tomorrow?'" he said.

Lindsay Boswell, chief executive of the Institute of Fundraising, said there was a danger that an unnamed "marginal player" in the fundraising sector would fail as a result of the fallout from Fruitful.

Fruitful Fundraising went into administration last month with the loss of 800 jobs.

- See News in Focus, p12; and Editorial, p17.

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