Charities 'could face penalties for appeal letters'
Charities
10th July 2009
Charities that include cash with appeal letters in a bid to make people feel guilty could face penalties, according to a minister.
Baroness Crawley stated that more charities need to demonstrate "best practices" when it comes to direct mail but explained that "annoying" methods such as generating donations by mailing money are not currently banned, the BBC reports.
Responding to a question in the House of Commons, she warned organisations that the government may intervene if self-regulation is unsuccessful.
She pointed to the Fundraising Standards Board, which prevents members from using "direct mail enclosures" that illicit a "guilt response" in recipients, something that may be of interest to charity insurance customers.
Questioning the Labour peer, Baroness Trumpington stated: "If the government has the power to stop this objectionable practice, why don't they use it?"
The Treasury recently announced that it will not be providing charities affected by the collapse of Icelandic banks with compensation, placing additional pressure on organisations that are at risk of losing thousands of pounds.
For more information on how Giles can help you insure your charity, Click here.
