Street fundraisers representing a social enterprise that works with young people to create a magazine and help develop their life skills has been criticised for placing undue pressure on people to donate.

The community interest company Inside Success Union (ISU) breached nine fundraising practice codes, which are regulated by the Fundraising Regulator.

It was found to have carried out fundraising illegally, without appropriate licences or permits and placing undue pressure on members of the public to donate.

The organisation’s complaint handling and its learning from complaints were also raised as issues of concern.

In addition, its representatives were found to have caused an obstruction when fundraising.

The organisation was informed of the regulator’s decision after its investigation was completed in 2022 but within six months 21 more complaints had been made.

“The complaints revolved around certain recurring themes, such as the youth vendors of ISU obstructing people's paths or shopfronts to talk to them, soliciting donations, using pressurised fundraising techniques to get people to increase donations, and engaging in charitable fundraising activities without the necessary licences,” said the Fundraising Regulator.

In one incident last year “a heated exchange” between one of the organisation’s youth vendor’s managers and a member of the public occurred.

This was sparked by the member of the public questioning why the organisation’s representative was not wearing ID or displaying a charity number.

During this exchange the vendor’s manager “started to film the complainant with a mobile phone”.

“The complainant said that they felt they were prevented from leaving, and the encounter left him feeling ‘harassed and intimidated’,” said the regulator.

“The complainant told us they contacted ISU directly twice to raise a formal complaint but had received no acknowledgement or reply.”

It added: “Based on the complaints we have received since January 2023, it appears that ISU has not followed our previous recommendations or applied the lessons learned from the complaints we presented to it.

“As a result, we find that it has breached the section of the code that concerns learning from complaints.”

Inside Success Union CIC has never presented itself as a charity nor claimed charitable status. We have always operated as a for-profit magazine.

Inside Success Union response

A spokesperson for Inside Success Union said that the organisation "had never presented itself as a charity nor claimed charitable status. We have always operated as a for-profit magazine".

They added: "We acknowledge the identified breaches of the Code of Fundraising Practice related to the behaviour of our vendors and the engagement in street fundraising without the appropriate licenses. We sincerely apologize for any concerns that may have arisen due to these lapses.

"In response to the regulator's conclusions, Inside Success Union CIC is actively engaged in conducting a 'root and branch' review of our approach to street vendor activity.

"This comprehensive review is aimed at addressing the identified issues and implementing necessary corrective measures to ensure full compliance with the Code of Fundraising Practice.

"We want to assure our readers, stakeholders, and the public that we are committed to transparency and accountability in our operations. Inside Success Union CIC is not a charity, but we recognize the importance of upholding ethical standards in our business practices."

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