New Laws to tackle 'Charity muggers'
Solicitation of direct debits on the high street to be regulated
New rules are being brought in to regulate high street fundraisers, known as charity muggers or chuggers, who persuade passers-by to donate a monthly sum to charity.
The practise is controversial in charity circles with many feeling that it alienates as many potential donors as it brings in. There is also a belief that the private firms who organise this kind of fund raising are making an undue amount of profit. Investigations by national newspapers have shown that often fund raisers do not disclose that they or the company they work for receive a percentage of the money donated even when asked. In most cases donors could ensure that a greater proportion of their money goes to their favoured charity by donating correctly.
Many people regard them as an urban menace with the High Street rarely clear of representatives of one or other charity. The practise has mushroomed in recent years as professional fund-raising firms have sought to exploit a loop-hole which allows them to solicit for direct debit payments rather than cash. The charities often have to pay as much as the first year's donation to the fund raising company. They have managed to sign up more than 700,000 direct debits with as much as 240 million likely to come to charities as a result over the next few years. Charities such as Oxfam admit to spending a six figure sum each year to these fund-raising firms.
The bill
to regulate them was included in the Queen's speech in parliament recently
and is designed to halt alleged abuses in the way that donors are recruited
on the street and to provide greater transparency on where their money
goes. All chuggers would be require by the Bill to �inform potential donors
what proportion of their donation will be used to pay the costs of the
fundraiser�., Charities will also have to publish details on how much
is spent on administration and fundraising.
Fiona Mactaggart, the charities minister, said last night: �These reforms
will bring the law into the 21st century. People will have a right to
know about the charities who stop them on the street. We want to encourage
responsible fund raising but deter bogus collectors.�
November 28, 2003