Retailers have been advised to tighten their rules on charity cash collections in their stores, in new guidelines published by the Fundraising Regulator.
The updated framework, which has been compiled in conjunction with a working group of major supermarkets, aims to ensure “safe, secure and responsible fundraising in store”. It also aims to prevent “bad actors” exploiting different charity collection policies by ensuring that all stores follow the same rules.
Cash collections are when a person representing a charity takes small donations of coins or notes from shoppers in sealed containers or a bucket. They are commonly positioned by the store entrance or in high footfall areas of the shop.
While the Fundraising Regulator insists that the vast majority of collections are safe and from registered charities, it began work in 2024 to tighten its guidance in order to prevent criminals from taking advantage of shoppers.
Prevent fraud in shops
The headline of the new guidance – which is voluntary – is that every individual store should have a named collections manager, who can liaise with, validate and schedule charity collections. Stores should also have a robust booking system in place and not allow unannounced collections.
Crucially, individual stores should ensure that all collected money ends up where fundraisers have promised. This could involve the store collecting the donations at the end of the day and paying them to the charity directly.
Other recommendations include establishing a code of practice for fundraisers and store staff to follow, as well as established procedures to remove fundraisers from store premises if needed.
Any store staff who suspect that fraudulent fundraising has occurred should contact ActionFraud or, in Scotland, Police Scotland. If there is an immediate risk to staff or shoppers they should contact the police.
The full guidance has been published on the Fundraising Regulator’s website.
Sainsbury’s, Aldi, Lidl, Asda, Co-op, Morrisons, Waitrose and Tesco all consulted on the creation of the new guidelines.
“With over 600 Sainsbury’s supermarkets in the UK, we know the positive impact that in-store fundraising has on the local communities that we serve,” said Ruth Cranston, Sainsbury’s director of sustainability.
“Our colleagues and customers are so supportive of in-store fundraising efforts and we want to do everything we can to support them, in supporting the causes they care about.
“That’s why we’ve worked with the Fundraising Regulator and other retailers to advocate for clearer guidance to help the supermarket sector ensure that charity collections are delivered securely for our customers and charities. We are delighted to see the publication of this advice.”
Supermarkets donate millions to charity each year
Collectively, supermarkets contributed £540m to charity in the 22/23 financial year, according to the BRC’s latest charitable giving report. This included cash donations but also through established campaigns – like Sainsbury’s Nourish The Nation – as well as other corporate fundraising. Tesco and Sainsbury’s lead the FTSE 100 for the highest proportion of profits donated to charity last year.
Matthew Field, head of the Fraud Advisory Panel, a charity, welcomed the new guidelines: “Cash collections are a valuable source of income for charities that rely on the generosity of the public to support good causes,” he said. “This type of fundraising helps raise awareness of charitable objectives and provides crucial income that allows the sector to then help others.
“The support of supermarkets is a hugely positive step forward and will make a significant difference in tackling economic crime. Preventing charity fraud is a primary objective for the Fraud Advisory Panel and we look forward to working with the industry and Fundraising Regulator to continue this initiative.”
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