DCH 334 Institute of Licensing
Institute of Licensing Memorandum
Witness Notes, Draft Charities Bill May 2004
Fraud Committed by persons
falsely collecting for
supposed charitable purposes.
Listed below are examples of fraud undertaken
by individuals and organisations in different areas of charitable
collection. The list is purely to emphasise the abuse arising
from these collections. I can verify that this type of fraud will
be occurring in every Authority on a regular basis.
Street Collections
The unlicensed street collections are
usually undertaken by the same organisations which have been traced
across the country or a vast proportion of. The unlicensed collections
undertaken by individuals are usually more regional but again
are undertaken in a multitude of different areas. The most prolific
offenders are listed below and have been prosecuted innumerable
times by different Authorities. As a Local Authority Officer I
can disclose that I was called out on a daily basis to combat
such unlicensed collections.
1. Special
Baby Care Units I Disabled
Children
Selling A5 sized booklets in City Centres
for either special baby care units or on behalf of disabled children,
using hard sale tactics and
Multiple collectors (usually claiming
benefits or students). Collectors usually target Mothers with
babies or students and sell booklets for £1/ £2.
The two main organisers of the scheme are from Blackpool, Lancashire.
Please refer to attached examples at
appendix 'A'
2. Mini Buses for the Disabled I
Blind Children etc.
Three organisations based across the
country to cover the whole of England selling competition tickets
to purchase mini buses for the disabled. One mini bus (£21,000)
is purchased each year from multiple competitions bringing in
an estimated income of at least £750,000. Collectors usually
target Mothers with babies or students and sell tickets for £1/
£2. The organisers are based in Nottingham & Banbury.
Other such schemes are also in circulation but not on such a large
scale and could be linked to the larger organisations.
Please refer to attached examples at
appendix 'B'
House to House
House to House collections are the most
abused of charitable collections and are not evident unless specifically
investigating them. The unlicensed collections are usually undertaken
again by the same organisations which have been traced across
the country or a vast proportion of. The unlicensed collections
undertaken by individuals are usually more regional but again
are undertaken in a multitude of different areas. Unlicensed House
to House collections still occur on a weekly basis in areas with
strict regulation and enforcement.
1. Scope
Individuals from Doncaster involved
in Pub to Pub collections purporting to collect on behalf of Scope.
Scope have not given permission for these collections and most
of the literature used is forged. It is believed that this group
collect money in multiple Authorities with each collection bringing
in hundreds of pounds each evening. South Yorkshire Police were
served with statements etc and chose not to act on the information
although Scope had formally complained.
Similar pub to pub collections take
place across the country with organisations based in Portsmouth,
Hampshire collecting in the North East on a regular basis (an
estimated £20,000 per collection is made over a weekend)
Please refer to attached examples at
appendix 'C'
2. Clothing Collections
As detailed in the Institute of Licensing's
initial response. Please refer to attached examples at appendix
'D'
Supermarkets
Not regulated at all and tend to be
the focal point for unscrupulous collectors, usually selling pins
or badges. Due to the lack of control and power to for Local Authority
Officers to investigate there is little evidence of prosecution
as this falls under the remit of the Police.
I can confirm that through liaison with
some of the supermarkets we can combat individuals that are know
to undertake fraudulent collections but have yet to be prosecuted.
Individuals involved usually move from charity to charity embezzling
funds. Within Leeds Metropolitan District Council Licensing Enforcement
are aware of 8 individuals and their associates that frequent
supermarkets on a very regular basis.
Please refer to attached example at
appendix 'E'.
IoL response to giving consideration
to what arbitration or appeal or mediation mechanism could be
applied in the event of an argument between a Charity and Local
Authority about Home Office guidance on licensing
Public Collections?
It would be reasonable to allow Charities
to appeal against a decision of refusal made by Local Authorities
on grounds of capacity. Currently there is no right of appeal
with regards to the refusal of a street collection permit under
Section 5, Police, Factories etc (Miscellaneous Provisions)Act
1916 and a 14 day right of appeal to the Secretary of State for
the refusal of a House to House Collection permit under House
to House Collections Act 1939.
It is felt that this right of appeal
should be an internal function with application served to the
Licensing Committee. The Local Authorities should not bear the
burden of cost of a right of appeal to the Magistrates or other.
This function would then allow for legal precedents through a
judicial hearing if required.
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