‘Charity’ publishing companies closed in the public interest

first_img Howard Lake | 15 March 2007 | News AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis ‘Charity’ publishing companies closed in the public interest  18 total views,  1 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis Two ‘charity publishers’ have been wound up in the public interest by the High Court in Manchester following an investigation by Companies Investigation Branch of the Insolvency Service. The companies misled those whom them sold advertising to in terms of the amount being donated to charity.Lancashire-based Hamilton Forbes Limited and Price Chamberlain Limited were set up to continue the business of charity publisher Barrington House Publishing Corporation Limited, which itself was wound up in October 2005.Investigators found that both Hamilton Forbes and Price Chamberlain sold advertising space in wall-planners to small businesses who were contacted by cold-calling, by many of the same staff, from the same premises, using the same methods and for the same charities asBarrington House. Advertisement Initially the companies failed to comply with Section 60 of the Charities Act 1992 and inform advertisers of the proportion of their fees which would be given to charity. Even though they latterly sent out statements, these were inaccurate, according to investigators.Advertisers were told that 15p in every pound would be given by Hamilton Forbes Limited to The Children’s Research Fund and 10p in every pound to the International League for Protection of Horses. In fact, less than 5p in every pound went to these charities.Advertisers with Price Chamberlain Limited were told 25p in every pound would go to the charity Kids in Need and Distress (KIND) but in reality it was 8p.The Insolvency Service found that advertisers were also misled as to the planned distribution of the wall-planners with telesales staff stating figures ranging from 100’s to 100,000 or “all hospitals”. In reality investigators found that the maximum distribution for any one wall planner was just 87 with the average closer to 67.The accounting records of both companies were “at best inaccurate and at worst misleading”, according to the Insolvency Service. Both companies appeared to be insolvent owing VAT and PAYE of over £250,000.The Official Receiver was appointed as provisional liquidator of each company on 29 January 2007 and the winding up orders were made on 13 March 2007. About Howard Lake Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world’s first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp and co-founder of GoodJobs.org.uk. Researching massive growth in giving.last_img read more

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