Date: 10/11/2008
High Peak Borough Council, who regulate street cash collections, are alerting residents that there can be problems in making regular donations to charities by direct debit or standing order.
Councils are not empowered to regulate the collection of direct debits made in the street, whereas the law does provide for the regulation of cash collections. The fact that a collection of direct debits is made in the street in the knowledge of the council does not mean that the council approves of the collection.
In order to raise their profile and to increase donations by direct debit, some charities now contract professional fundraising companies to approach people in the street to make regular donations by direct debits.
Professional fundraising companies are engaged on a commercial basis and are accordingly paid for collecting direct debits on behalf of the charity. This could result in the charity actually receiving no funds for the good cause, because cancelling a direct debit made through a fundraising company within the first year may result in the charity paying more to that company than the charity receives from direct debit donations.
John Haken, Executive Councillor for the Environment, said: "It is the Council's responsibility to regulate cash collections for charity, however we have no control over those who approach the public in the street to solicit donations by direct debit.
"Personally speaking, I disapprove strongly of any organisation that pressures residents in any way to sign a direct debit instruction after a chance meeting in the street. Of particular concern are organisations that approach people in the street to sell scratch cards or raffle tickets.
"There are many worthy causes based in the High Peak to which you can make a charitable donation and unless you are absolutely sure who will receive your donation I would urge people not to give any money. If you have any enquiries about payments you make to charity, you should contact them directly."