Businesses 'strip charities of £3m'

A LEADING charity has seen its clothing collections drop by 25 per cent because it is being squeezed out by firms who sell on donated goods for profit.

Mike Lucas, retail director for the British Heart Foundation (BHF) said he was aware of several commercial operations going door-to-door across the country and estimated it cost the charity up to 3 million a year in lost donations.

Among them is the Clothing Collection Team, based in Dalkeith, which has been distributing collection bags around the Oxgangs and Bellevue areas of the Capital.

While a leaflet included with the bag does not claim to be from a charity and has "Clothing Collection Team Ltd" in small print at the bottom, it is the wording of the appeal for clothes, and the logo, that has caused concern.

The leaflet, which asks people to "kindly donate" unwanted clothes, blankets, shoes, toys, handbags, curtains, lingerie and cosmetics, says the items will "reach those who do not have possibility to purchase new footwear and clothing".

The company is even asking for people to donate old mobile phones and laptops.

Mr Lucas said: "Companies working for commercial gain are a huge problem for charities. At the BHF, we have seen a 25 per cent drop in household collections due to this commercial activity, costing us 3m - money which could be spent in the fight against heart disease.

"The BHF believes it's only right householders in the UK are given clear information from collectors about where the proceeds of their goods are going so they can make an informed choice."

The practice of "baggers" has been reported in the Capital for several years, with some of the donated goods thought to be sold on for profit to second-hand shops in eastern Europe.

One local resident, who asked not to be named, said he thought it was "disgraceful".

"It is really unfair, as it looks so much like a charity bag, and quite a few charities do that in this area," he said.

"It was only when I read the small print that I realised it was a company and I was absolutely raging. It seems just like a charity collection.

"I'd imagine a lot of older people might be taken in by this. When I phoned trading standards they said there was nothing they could do."

A spokeswoman for the city council said: "Following an inquiry from a resident we are satisfied that no breaches of legislation have occurred.

"We have, however, passed details of the inquiry to the local trading standards authority for the company concerned."

No-one from Clothing Collection Team Ltd was available to comment.