July 16, 2012

Doorstep licence change will devastate vital charity collections

The Cabinet Office could do away with regulations helping large charities collect doorstep donations – a move that could cost the sector millions of pounds – if it implements proposals in a new report.

Charities are required by law to apply for a licence from relevant local authorities when they carry out doorstep collections. In some cases, charities who carry out lots of collections, like the British Heart Foundation, can apply for a National Exemption Order which allows them to collect goods across England without applying for licences.

Applying to local authorities for individual collections is not realistic, feasible or remotely sustainable for us

But the Cabinet Office is now considering changes to National Exemption Orders which would force every charity to apply for a licence for individual collections. The BHF carries out 100,000 collections each year and says applying for collections on an individual basis could cost around £650,000 – the equivalent of funding five specialist cardiac nurses for three years.

It could also lose the charity hundreds of thousands in lost sales due to delays in acquiring stock.

Our Retail Director Mike Taylor said: “This is not a question of fairness but of pragmatism. Applying to local authorities for individual collections is not realistic, feasible or remotely sustainable for us.

“If the Cabinet Office moves forward with these proposals it will simply divert vital funds from life-saving research, prevention and care into form-filling and red tape.

“It’s a decision that will undoubtedly lead to delays in acquiring stock and have a devastating impact on our charity shops. Every one per cent reduction in house to house collections would cost the BHF £400,000 in lost sales."