A company run by a plumber previously hailed as a hero for helping vulnerable customers misled donors and engaged in "controversial fundraising", a regulator has found. The Fundraising Regulator concluded that James Anderson's community interest company Depher breached multiple fundraising codes.
Anderson, from Burnley, Lancashire, founded the community interest company and gained internet fame for fixing boilers for free for elderly and financially struggling customers. Actor Hugh Grant was previously reported to have donated tens of thousands of pounds to support the organisation's charitable work.
From hero to controversy
In 2022, an elderly couple given a new boiler for free likened Anderson to an "angel in disguise". The company had pledged to help elderly people and those in financial need with free plumbing tasks.
However, a BBC investigation last year accused the organisation of faking stories about good deeds to raise millions of pounds. The broadcaster reported that Depher used images of vulnerable people without consent and fabricated stories about acts of kindness.
Anderson's response and investigation findings
Anderson acknowledged mistakes but complained to Ofcom about the BBC investigation. He claimed online trolls had "doctored" images and accused the broadcaster of conducting a "witch hunt" against him.
The Fundraising Regulator's investigation, launched in April 2024, found multiple breaches including misleading donors and unfair treatment of people. The regulator discovered the same images being used alongside different stories on social media and found the company unable to "evidence claims made as part of its fundraising efforts" on multiple occasions.
Specific violations identified
The investigation revealed "controversial fundraising" practices including "frequent reference to potential death or death from suicide in its materials". Donation purposes were deemed "inconsistent", with some funds designated for specific purposes and others for general company use.
The regulator noted that donations had been used to purchase a house, though decisions about money usage fall under a different regulator's remit. Depher had unsuccessfully applied three times to become a registered charity but was rejected for failing to meet legal criteria.
Regulatory response and oversight
The CIC Regulator, which oversees community interest companies, 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 spokesperson added: "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."
Current status and recommendations
Depher Community Plumbing and Heating CIC is no longer operating and Anderson has stepped down. The successor organisation, Community Elder and Disabled Support CIC, should adopt the regulator's recommendations including seeking advice about fundraising activities and ensuring clarity for donors.
Gerald Oppenheim, chief executive of the Fundraising Regulator, said while it took into account that Depher was "a small company which had experienced rapid growth after media exposure", it nonetheless made "serious errors in its fundraising activities". He emphasised that organisations must be "scrupulously honest in their fundraising" and case studies should be "a truthful representation of the facts and properly evidenced".
Key guidance for organisations
Oppenheim stressed that people must be "fully informed of how their likenesses and stories will be used and must have the option to refuse permission". He warned that money raised for particular purposes "must be used in that way".
He 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."
(PA Media) Note: This article has been edited with the help of Artificial Intelligence.
