Fundraisers found guilty of misleading the public

The High Court has ruled that three professional fundraising companies based in Manchester are guilty of "seriously misleading the public" and demonstrating a lack of commercial probity.

Rosshoe, UK Fundraisers 2004 and Combined Trading Services have all been investigated by the Companies Investigation Branch of the Government Insolvency Service.

Tameside-based Rosshoe, mainly a recycling company, carried out fundraising targeted at small and medium-sized businesses. However, in 2003, only £50,000 of the £800,000 it raised was donated to charities.

Separately, UK Fundraisers, which claimed to collect money to help child sufferers of cancer and autism, paid only 4.5 per cent of its £1m income to charity in the 2004/05 financial year.

A portion of the 'lost' earnings were loaned to the third insolvent company, Combined Trading Services. However, the service quickly proved unprofitable and owed UK Fundraisers £140,000 by August 2005.

ALSO...

Centrepoint Nationwide, which sold £450,000 of ad space to raise charity funds, has closed after it was found the ads were never published and it had no charity connections. It had made up links with the homelessness charity (Third Sector, 21 June).

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