The charity agency which was lambasted by the Fundraising Standards Board for using a rogue database – which hundreds of others may have tapped into – has become the latest business to go bust, with the loss of almost 150 jobs.
Norwich-based Insight CCI was investigated by the FRSB last year over a single complaint, after it contacted one potential donor in a campaign on behalf of Breast Cancer Now (then called Breast Cancer Campaign) whose landline was registered on the Telephone Preference Service.
The FRSB investigation discovered that the complainant’s details had been provided by Indian firm Dynaxon IT Services, via the list broker PDV.
Dynaxon compiled the list after carrying out a telephone lifestyle survey, to create “opt in” leads for marketing. It is not known how many charities or businesses used this database, although it could run into many hundreds.
Insight CCI, which was founded in 2005, went into liquidation on February 26, according to the accountancy firm which is handling the liquidation process, Larking Gowen.
A representative of the firm told Third Sector that the agency had liabilities of £775,000, which included employee claims and debts amounting to £311,000, however, nearly £630,000 of this will not be paid because of a deficiency of assets to liabilities.
The company’s employees have not been paid since the end of January, although a number of staff were dismissed before February 26 after the agency suffered a fall in demand for its services.
A spokesman for the Institute of Fundraising said in a statement: “It is a tough climate for many fundraising organisations that work to raise important funds for vital causes across the country.”
The move comes just a week after Brighton-based Brighton-based charity agency Personal Telephone Fundraising shut up shop following a 70% fall in business.
Fundraising agency forced to close over client cuts
600 jobs go as charity backlash bites
ICO clears British Red Cross over illegal marketing
Charity probe reveals blatant disregard for data laws
Charities escape legal threat in last chance saloon
Graham slams ‘confusing’ charity preference service
Charities to lose £5bn a year, says REaD group study
Reforms to exterminate £2bn from charity sector
Macmillan fesses up to last year’s ICO TPS warning
Charities using illegal marketing data