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Bill will make fundraising transparent

Amy Adams
MP for Selwyn
19 November 2009

Bill will make fundraising transparent

Selwyn MP Amy Adams’ Bill to ensure those donating money to charity are told how much is going to fundraising firms has today been introduced to Parliament.

Ms Adams said she is delighted the Fair Trading (Soliciting on Behalf of Charities) Amendment Bill was drawn from the Members’ bill ballot.

“I’m thrilled that New Zealanders will be given the opportunity to know how much of their donation ends up with the charity they’re giving to,’ says Ms Adams.

“Kiwis are good at giving to charity. They should be able to trust that their donations are going to a good cause, not a company's bottom line.”

“I was horrified to learn that some professional telemarketing firms are keeping as much as 75 per cent of funds they solicit for charity,” Ms Adams says.

“New Zealanders work hard for the money they donate and they deserve to know how much of it will actually get to the charity.”

The Bill would require those who fundraise for charities to make sure consumers know a portion of any donation will be held back to cover fees. If more than half of a donation is to be kept by the fundraiser they will be compelled to tell the donor the amount.

Recent publicity has revealed some telemarketers hold back the vast majority of donations for themselves.

“To me it’s simply wrong to ask for a donation for a specific charity knowing that most of the money won’t make it to that charity,” Ms Adams says.

“If that’s your business model then the public has a right to know that before agreeing to part with their cash.”

Currently there are no rules on what has to be disclosed to consumers when seeking donations to charities.

The Bill does not impose any new obligations on the charities themselves and any fundraising that they carry out directly, with their own employees or volunteers will not be affected.

Ms Adams Bill was one of two National

35 Members’ bills were in today’s ballot. The other bill to be drawn was Rotorua National MP Todd McClay’s Easter Sunday trading bill.

Fair Trading Soliciting on Behalf of Charities Amendment Bill (pdf)

ENDS

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