A national coalition of enforcement and regulatory bodies is calling on the Government to reform legislation to tackle a rise in unlicensed street fundraising.
Convened by the Fundraising Regulator, The Local Government Association, The Metropolitan Police, the Institute of Licensing and the City of London Corporation have co-signed a letter to the Department of Culture, Media and Sport (DCMS) calling for the Police, Factories, & c. (Miscellaneous Provisions) Act 1916 to impose tougher sanctions to deter rogue operators.
The group argue that current legislation is no longer fit for purpose in dealing with aggressive or misleading street fundraising and lacks the enforcement powers needed to stop unlawful activity effectively.
Recent cases of unlicensed street fundraising by Community Interest Companies (CICs) Inside Success Union CIC and We R Blighty have recently come under scrutiny. Both organisations were prosecuted for unlicensed street collections, received fines, and were seen operating illegally the very next day.
Despite Inside Success Union CIC reporting an annual income in excess of £3 million, the court was only able to issue a fine of £665 — highlighting the lack of deterrent. The coalition also says that investigations and prosecutions also place a significant burden on public authorities and frequently result in penalties too low to change behaviour.
The Fundraising Regulator is asking DCMS to make three changes to the 1916 Act that will not add regulatory burdens on legitimate collectors, but would streamline enforcement for rogue actors.
The changes proposed are to increase the maximum fine from £200 to unlimited, with the option of a custodial sentence; introduce fixed penalty notices to allow local authorities to take swift enforcement action without court proceedings; and extend the law to cover offences by company directors, to prevent individuals avoiding penalties by dissolving and reforming organisations.
Jim Tebbett, head of proactive regulation at the Fundraising Regulator, said: “Unlicensed fundraisers are on the rise, and the enforcement system urgently needs reform. Repeated rule-breaking, particularly by a small number of CICs, is eroding confidence in street fundraising, harming legitimate charities that follow the rules, and putting public generosity at risk.
“We are calling on the Government to make straightforward legislative changes to keep our streets safe, ensure donations go where donors intend, and uphold trust in charitable giving.
“Charities are the cornerstone of our communities and national life — and we must protect the integrity of fundraising so they can continue their essential work.”
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