The Fundraising Regulator has found seven breaches of its code after investigating a community interest company (CIC) called Homeless In Need UK.
Concerns were raised by a local authority after one of its officers found a fundraiser for the CIC collecting cash from members of public outside a shop in Rickmansworth, Hertfordshire.
The council said the fundraiser, who was wearing Homeless In Need UK-branded clothing, had no collection permit and it has no record of an application.
When questioned by the council, the fundraiser failed to provide the CIC’s contact details or other relevant information and refused to move on when asked to do so.
Through its investigation, the regulator found that the fundraiser’s behaviour did not meet the standards expected, and the CIC accepted that the fundraiser acted inappropriately.
It confirmed that the CIC did not have the necessary permissions to fundraise on public land nor evidence that the shop had verbally allowed it to collect money on its premises.
The fundraiser’s failure to show appropriate identification was also a breach of the code.
The regulator urged the CIC to obtain the correct licences and permissions for street collecting, review its training materials for fundraisers and ensure those collecting money on its behalf wear ID badges that are authorised, clearly visible and include key details.
Homeless In Need UK, which provides temporary accommodation, PTSD counselling services and operates food banks, accepted all of the regulator’s findings.
Push for law changes
Gerald Oppenheim, chief executive of the Fundraising Regulator, said: “Over the last three years, we have seen a steady increase in complaints about fundraising by a few CICs.
“We continue to engage with the CIC Regulator and the government on the regulation of CICs and the issues raised in our complaints regarding their fundraising.
“We are also working alongside other regulators, police and local authorities to push for changes to the law that would make it easier and more cost-effective for local authorities to penalise unlicenced fundraising.
“Registered charities are subject to strict regulation.
“Yet members of the public cannot be expected to know the difference between a registered charity and a CIC, and we remain concerned that the response of some CICs to the light-touch regulation under which they operate may result in damage to the reputation of the wider charitable sector.
“We shall continue to engage with Homeless In Need UK CIC to support the implementation of our recommendations.”
