Make sure charity benefits from your direct debit payments

Release date: 07.08.07
Ref: BBC/PR/L&D/25/07

There are a variety of ways to make a donation to a charity of your choice including regular donations by direct debit / standing order.

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.

David Wilson, Senior Licensing Officer said:
“Do not give a direct debit to a charity as a result of being approached by a fundraiser in the street, unless you intend to maintain donations to the charity for several years. Cancelling a direct debit made through a fundraising company within the first year may result in the charity paying more to the fundraising company than the charity receives from your direct debit donations, which is actually worse for the charity than if you hadn’t made a donation in the first place! There is nothing to stop you contacting the charity directly to arrange to make regular donations by direct debit.

“As the law stands, a council is 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,” he said.

Charities decide how much money they invest in fundraising and what tools they think are the most appropriate and are likely to raise the most money. More traditional fundraising methods like direct mail or adverts also cost money; however if you are concerned about whether your direct debit payments will benefit the charity please contact them direct.