The Data Protection Commissioner is investigating claims that a leading charity shared its mailing list with a finance company without obtaining the necessary permission.
The charity, Concern Worldwide, denies that it provided a list of its donors to GE Capital. However, it did provide a mailing-list of supporters to a broker, who then sent out a mailing on behalf of the company.
GE Capital offered to give an average £150 to Concern for every loan taken out under the offer. The company says no pressure was put on the recipients of the mail shot, who were contacted with the consent of Concern.
The commissioner, Mr Joe Meade, yesterday raised the matter with Concern after members of the public complained about the practice on RT╔'s Marian Finucane show. A spokesman for Mr Meade said that under data protection laws, information obtained for a particular purpose could not be made available to third parties without the consent of the individual who provided it.
Concern, which is the biggest Irish aid agency, has responded to the criticism by promising to rethink some of its campaigns. It has also promised to consider complaints by donors who were asked what they considered intrusive questions about their age, status and income.
The agency also has a deal with Bank of Ireland, which has issued 2,000 Concern credit cards and remits a small proportion of the interest paid by the card-holders. In Northern Ireland, it operates a direct debit deal with the Northern Electric utility.
The controversy has highlighted the increasingly sophisticated methods used by charities to raise money from the public. With over 6,000 charities enjoying charitable exemption status from the Revenue Commissioners, competition for donations is intense. Modern fundraising techniques imported from the US and the UK have met with a mixed response.
Another focus of controversy for Concern is so-called "face-to-face" fundraising, in which teams of young collectors comb the streets seeking commitments from the public to donate standing orders to the charity.
Typically, the collectors are paid £8 to £9 an hour and the fundraising company receives a fee from the charity, plus a commission based on the number of "hits". Concern and Sightsavers International have raised large sums in recent years using this form of fundraising.
However, it hasn't worked for other agencies and industry sources believe it is "a one-year wonder" which will prove less lucrative as the public wearies of being approached by yet another smiling college student with a pen and clipboard.
Agencies use such marketing techniques because they work. Concern raised £18 million from its various fundraising activities last year, against costs of £4.5 million. Tr≤caire says it doesn't share its mailing-lists with anyone, and tries to keep its administration costs below 7 per cent. Last year it raised £17.95 million from the public, and spent £1.29 million on advertising and publicity.
Greater regulation of charities was promised by the last government over five years ago, but nothing has happened since.
