# Charities receive small return from clothes banks contracts

- Link: https://fundraising.co.uk/2013/04/29/charities-receive-small-return-clothes-banks-contracts/
- Published: 2013-04-29T08:36:12+01:00
- Author: Howard Lake

Two major Irish charities are reported to be reviewing their options with clothes
collection companies after a television investigation found that they were receiving
a small return from agreements with private companies. In addition, a reporter went
undercover "in the multi-million euro clothes recycling business to reveal how bogus
operators are preying on the generosity of the public".

Following RTE’s _Prime Time_ programme, Breast Cancer Ireland and the Irish Society
for the Prevention of Cruelty to Children (ISPCC) told the [Irish Times](http://www.irishtimes.com)
that they would be reviewing arrangements.

_Prime Time_ found that individual charity banks could generate as much as €7,000
but the charity could end up with only €150. Breast Cancer Ireland and ISPCC, in
common with other charities, have a contract with private companies who collect 
the donated clothes and pay the charity a fee.

Both charities have refused to reveal details of their arrangements with the private
companies, citing commercial sensitivities. This has led the Irish Charity Shops
Association and The Wheel, a representative body for charities, to call for more
transparency.

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Ivan Cooper, The Wheel’s director of advocacy, said that current voluntary disclosure
of financial agreements with third party fundraisers was not working and what was
needed was the implementation of the 2009 Charities Act which required such disclosure.
The Act has not been implemented due to government financial pressures.

 

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