Donors misled amid ‘controversial fundraising’ at plumber’s company – watchdog

A company run by a plumber previously hailed a hero for helping vulnerable customers misled donors and engaged in “controversial fundraising”, a regulator has found.

James Anderson, a plumber from Burnley, Lancashire, founded community interest company (CIC) Depher and rose to internet fame for fixing in-need customers’ boilers for free.

Actor Hugh Grant was previously reported to have donated tens of thousands of pounds to the company, which had pledged to help elderly people and those in financial need with free plumbing tasks.

In 2022, an elderly couple given a new boiler for free likened Mr Anderson to an  “angel in disguise”.

But, last year, a BBC investigation saw the organisation accused of faking stories of good deeds to raise millions of pounds, with the broadcaster saying the CIC had used images of vulnerable people without their consent and faked stories about acts of kindness.

In response to that investigation, Mr Anderson said he “held (his) hands up” about mistakes made by the company, but added that he had complained to the communications regulator Ofcom over the broadcaster’s investigation, claiming online trolls had “doctored” images and that he was being “set up in a witch hunt”.

Now an investigation – which was launched in April 2024 – into Depher by the Fundraising Regulator has found multiple breaches of the code of fundraising practice, including around informing donors and treating people fairly.

The findings, published on Wednesday, included that there had been misleading use of images on social media, with pictures of the same people alongside different stories, as well as an inability of the CIC, on multiple occasions, to “evidence claims made as part of its fundraising efforts”.

There was also said to be “controversial fundraising”, with “frequent reference to potential death or death from suicide in its materials”.

The purpose of donations raised for the organisation was also deemed “inconsistent”, with some suggested to be for a specific purpose and others for general use by the CIC.

The Fundraising Regulator noted that donations to the organisation had been used to buy a house but said decisions around how money is used lies with a different regulator.

The CIC Regulator, which the Fundraising Regulator is sharing its findings with, said it had noted the findings but would not confirm whether it was carrying out its own investigation.

A spokesperson said: “Any complaints regarding CICs are taken seriously and if a breach in CIC legislation is identified, then appropriate regulatory action will be considered.

“The regulator would expect all CICs to comply with any legal obligations or regulations to which they are subject whilst they deliver benefit to the communities they serve.”

Depher had applied three times to the Charity Commission to be registered as a charity but was rejected for having failed to demonstrate that it met the necessary legal criteria set out by charity law.

The Fundraising Regulator said Depher Community Plumbing and Heating CIC is no longer operating and Mr Anderson had stepped down.

But it said its successor organisation – Community Elder and Disabled Support CIC – should adopt the regulator’s recommendations.

These include seeking advice about its fundraising activities, ensuring there is clarity for potential donors about the purpose of their donation and the aims of the CIC and making sure it has an appropriate plan to learn from complaints and concerns.

Gerald Oppenheim, chief executive of the Fundraising Regulator, said while it took into account the fact that Depher was a small company which had “experienced rapid growth after media exposure, it is nonetheless clear that it made serious errors in its fundraising activities”.

He said all such organisations must be “scrupulously honest in their fundraising”, case studies should be “a truthful representation of the facts and properly evidenced”, with those involved “fully informed of how their likenesses and stories will be used and must have the option to refuse permission”.

He also warned that money raised for a particular purpose or appeal “must be used in that way”.

Mr Oppenheim said: “Our investigations are published so that other organisations can learn from them. Depher’s successor organisation, Community Elderly and Disabled Support CIC should adopt the recommendations we have made.”