Adding Transparency To Charitable Giving

Minister of Consumer Affairs Heather Roy today congratulated National MP Amy Adams on the passing of her Fair Trading (Soliciting on Behalf of Charities) Amendment Bill through its First Reading in Parliament this evening.

"While charities can use a third party to solicit donations, consumers are often unaware that the third party may retain a proportion of that donation as payment for services.  Thus, the donor is being misled," Mrs Roy said.

"Amy Adams' Bill makes donating transparent - adding provisions to the Fair Trading Act requiring charities to disclose to donors the portion of the donation to be kept by the collector where that portion is over 20 percent.  If the proportion is between 20 and 50 percent, the collector must disclose that they are keeping a portion but does not have to disclose the amount.  If the proportion is over 50 percent, the collector must disclose the percentage to the nearest percentage point.

"The Fair Trading Act is the legislation currently in place to ensure consumers are not misled.  It is part of my 'One Law' project - a simplification programme for consumer law with the goal of principle-based consumer-supplier legislation that will see rationalisation of the 12 consumer laws that currently exist.

"Mrs Adams and I have discussed the interface between 'One Law' and this amendment.  We have agreed that there is merit in the proposed Bill being absorbed into the 'One Law' project and considered within the new approach to consumer law.

"I believe that consumers should have all the information they need to be able to make well-informed decisions when purchasing goods and services, or when donating to a charity.  I commend Mrs Adams for introducing more transparency to charitable giving," Mrs Roy said.