Institute supports call for modernised street fundraising licensing laws

A national coalition of regulatory and enforcement bodies, led by the Fundraising Regulator, has called on the UK Government to reform century-old legislation to tackle the growing problem of unlicensed street fundraising. Joined by the Institute of Licensing, which has co-signed a letter to the Department for Culture, Media and Sport (DCMS) advocating for stronger enforcement measures against unlawful fundraising activities.

The letter, jointly authored by the Fundraising Regulator, the Local Government Association, the City of London Corporation, the Metropolitan Police, and the Institute of Licensing, highlights critical flaws in the Police, Factories, & c. (Miscellaneous Provisions) Act 1916, which governs street collection activities. The coalition argues that the current legal framework is inadequate for addressing aggressive or misleading street fundraising and lacks the enforcement powers necessary to deter repeat offenders.

The letter emphasises the strain that illegal street collection activity places on local licensing authorities.

IoL CEO Paul Adams, said:

“Unlicensed and unlawful street collection activity places unnecessary burdens on licensing authorities both in terms of enforcement and associated costs. It is important that the public are protected from such illegal activity and that properly authorised charitable collections are properly supported.”

Recent prosecutions, including those of CICs Inside Success Union and We R Blighty, exemplify the systemic issues identified by the coalition. Despite significant revenues reported by some organisations—Inside Success Union CIC declared over £3 million in annual income—the available legal sanctions remain minimal. In one case, the only penalty issued was a £665 fine, underscoring the limited deterrent effect of current legislation. These groups have been seen collecting the day after prosecution, reinforcing the need for reform.

To address these concerns, the coalition proposes three specific changes to the 1916 Act:

• Increase the maximum fine from £200 to unlimited, and introduce the possibility of custodial sentences for serious offences
• Enable local authorities to issue fixed penalty notices, allowing for swift enforcement without requiring costly court proceedings
• Extend liability to company directors, ensuring individuals cannot evade responsibility by dissolving and reforming CICs

Jim Tebbett, Head of Proactive Regulation at the Fundraising Regulator, said:

“Unlicensed fundraisers are on the rise, and the enforcement system urgently needs reform. Repeated rule-breaking, particularly by a small number of CICs, is eroding confidence in street fundraising, harming legitimate charities that follow the rules, and putting public generosity at risk.

“We are calling on the Government to make straightforward legislative changes to keep our streets safe, ensure donations go where donors intend, and uphold trust in charitable giving.

“Charities are the cornerstone of our communities and national life — and we must protect the integrity of fundraising so they can continue their essential work.”