Tag Campaigns goes into voluntary administration after adverse publicity on its face-to-face fundraising

Company that works with a number of charities on fundraising says it has acted because of financial losses and 'unprecedented media and regulatory attention'

Street fundraising
Street fundraising

The fundraising agency Tag Campaigns has gone into voluntary administration because of financial losses and "an unprecedented degree of media and regulatory attention" in recent months.

In a statement published today, the directors said the company, which specialises in text donation campaigns and employs about 50 people, had invested in new products over the past two years, which had led to financial losses.

The company has recently been investigated by the Fundraising Standards Board, which concluded that its fundraisers broke charity law and regulations in its activities.

The Tag statement said that no charity was owed any money and all staff would be paid for the work they had done.

"This financial situation now coincides with recent changes in the external climate, with Tag having faced an unprecedented degree of media and regulatory attention in recent months, following a small number of examples of what we have always acknowledged were unacceptable operational shortcomings," it said.

"The changing landscape with regard to sites access and allocation is a further ongoing concern. As a result, the directors now consider that the degree of risk involved in engaging further losses moving forward has changed markedly."

Accounts filed with Companies House show that Tag was part of the Gift Group of fundraising companies, which included Gift Fundraising. Gift Fundraising went went into voluntary administration in February.

A Tag spokesman declined to comment further. No one at the administrators, Resolve Partners LLP, was available to comment.

The FRSB launched an investigation into Tag, which is not an FRSB member, after The Sunday Telegraph newspaper published an article in June that said Tag fundraisers appeared to be breaking charity law and regulations.

A week after the FRSB’s report was published in December, the homelessness charity Shelter suspended its work with Tag after another article in The Sunday Telegraph found another of its fundraisers allegedly breaking charity law and making misleading comments to one of its reporters.

A spokeswoman for the RSPCA, which began a review of its work with Tag after the initial allegations emerged in June, told Third Sector last week that it was "still reviewing our relationship with Tag Campaigns".

Tobin Aldrich, director of fundraising at WWF-UK, said: "When we first became aware of allegations of poor practice, we stopped working with Tag immediately and we have no intention to work with it in the foreseeable future. We expect all agencies we work with to follow all legal and regulatory requirements on our campaigns."

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