Charities owe collapsed fundraising agency over £400,000, say administrators

09 May 2019 News

Charities owe collapsed door-to-door fundraising agency Home Fundraising more than £400,000, according to recently filed documents.

More than 1,100 staff have been made redundant at Home Fundraising, going into administration in March this year.

According to documents filed with Companies House last week, there were 1,111 members of staff on the company payroll when it entered administration, although not all of these were “actively working” for the organisation at the time.

The report by administrators HW Fisher & Company says all staff were made redundant soon after the company entering administration "when it became apparent that a sale of the business and assets of the company would not be achieved".

It says a number of parties expressed an interest in a possible purchase of some of the company's offices, with staff to be transferred, but these fell through as they would have incurred a "significant liability" due to TUPE regulations.

The report also said that charities owe the company £415,159, while former staff owe the company some £7,000 for season ticket loans.

It said the administrators are currently liaising with the charities regarding the payment of these outstanding balances.

The document also revealed reasons for the financial failures of the company. It said the directors blamed Brexit for leading to difficulty in recruiting fundraisers, that GDPR compliance had made the company accrue extra costs and that there had been decreasing revenues.

In the year April 2017 to February 2018, there was a loss of £967,245, described as “a challenging year of trading”.

It comes after the door-to-door fundraising company closed on 1 March, suspending operations in its 17 offices.

At the time of administration, the company, which was formed in 2005, said that 600 jobs were at risk.

For more news, interviews, opinion and analysis about charities and the voluntary sector sign up to receive the Civil Society News daily bulletin here

 

 

More on

We use cookies to ensure that we give you the best experience on our website. Read our policy here.