# Salford fundraising company closed

- Link: https://fundraising.co.uk/2007/08/05/salford-fundraising-company-closed/
- Published: 2007-08-05T23:00:00+01:00
- Author: Howard Lake

A Salford-based company using telesales and personal collectors to raise money for
charity has been wound-up by the Insolvency Service after it discovered that only
three per cent of money raised was paid to charities.
Changing A Life Ltd was not
affiliated to any charity but claimed to distribute 50 per cent of the funds donated
to child related causes. However, investigators found that just three per cent of
more than £275,000 was paid out to good causes between May 2006 and January 2007
when the company ceased trading with more liabilities than assets.

The investigators said that the company was in breach of charity legislation and
failed to tell donors exactly how much would be given to the good causes, and its
record keeping was so poor that it was impossible to ensure all money donated to
specific causes actually went to that cause.

Earlier this year, one of the company’s senior managers was jailed for two years
afer being convicted of offences committed while previously employed by a charity
fundraiser.

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