Bill would create a Do Not Call Register for Charities

FIA has made a submission to the Senate Committee that is looking into a proposal by independent Senator Stirling Griff to amend the Do Not Call Register Act, creating a new category for calls from charities. If adopted, the bill would jeopardise the future of the telephone as a fundraising channel.

FIA has recommended that in view of the significant reduction in complaints about charity calling due to effective fundraising self-regulation, the continuing validity of the public interest exemption, the risk of additional compliance costs and administrative burden particularly for smaller charities, and loss of income to charities due to inability to contact donors by telephone, that the Senate Committee reject the proposed amendments to the DNCR charity exemption. Here is a summary of our arguments.

Impact of loss of DNC exemption

FIA estimates (conservatively) the loss of the Do Not Call Register (DNCR) exemption would put at risk $600 million in income to charities.

Telephone plays a critical role in supporting regular giving

Planned giving delivers six times more donations than spontaneous giving. Taking away the telephone would have a significant knock-on effect across all fundraising channels.

The policy argument for a DNCR exemption for charities remains valid

Evidence suggests that telemarketing provides charities with an important source of revenue.  The exemption is aimed at ensuring that charities are appropriately able to continue to raise funds to support their work. 

Senator Griff’s proposal is unworkable

By creating a second-tier Do Not Call Register for charity calls, the bill would:

• create yet another tier of bureaucracy, especially burdensome for smaller charities,
• draw many thousands of previously exempt charities into the DNCR regime with all the cost and administrative burden that entails,
• be the first step towards an outright ban on charitable tele-fundraising,
• create the conditions for the rapid expansion of the DNC/charity category
• eliminate the possibility of ever re-activating thousands of past donors, costing the sector many millions in lost donations annually.

Cost of DNCR subscription prohibitive for smaller charities

The cost of the DNCR subscription is prohibitive for most medium to smaller charities – with fees up to $127,700 – rendering the telephone non-viable as a fundraising tool.

Complaints against fundraising are small in number and in decline

Charity complaints to the ACMA represent a very small (and declining) percentage of the total. In 2017-18, 1.2 percent of complaints to the Do Not Call Register were about charity calls. In 2018-19, 0.8 percent of complaints to the Do Not Call Register were about charity calls.

Charities do not prey on the vulnerable

Senator Griff has said that “Older Australians are the prey that some charities cherish.” On the contrary, it is this very segment of the population that fundraising is intended to help through its support of the many charities whose purpose is to aid the vulnerable.

FIA’s Code prevents fundraisers from targeting vulnerable donors

FIA has introduced donor care provisions in its Code to protect vulnerable people along with training for members, and compliance monitoring and reporting through an independent Code Authority.

Charities and their agencies have effective tools to manage preferences

Charities and their agencies agree how to manage calling preferences as part of their contract. Most agencies have their own in-house preference list, so anyone informing them that they do not wish to receive calls is flagged ‘do not call’. 

FIA encourages members to make submissions to the Committee in support of our position highlighting the impacts on your organisation should charities lose the ability to call numbers on the Do Not Call register. Submissions close on 21 February and can be uploaded here: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Environment_and_Communications/UnsolicitedCommBill

Telecommunications Legislation Amendment (Unsolicited Communications) Bill 2019 has been referred to the Senate Environment and Communications Legislation Committee for inquiry and report by 17 April 2020. The bill would remove the exemption of charities to call numbers on the Do Not Call Register.