In a speech to the Fundraising Institute to be delivered on Wednesday, the assistant minister for charities, Andrew Leigh, will tell the not-for-profit sector it must improve its donation solicitation practices because rogue, exploitative operators were undermining public trust in its work.
He particularly condemns those who encourage vulnerable and often elderly people to authorise online bank-account deductions without properly explaining they will be ongoing donations and not just a one-off gift.
Leigh cites the case of a 79-year-old Queensland man whose bank contacted him last year after detecting suspected fraudulent withdrawals from his account.
The bank also printed out pages from his account to separately flag that several not-for-profit organisations were deducting consistent amounts at regular intervals and to ensure he was aware of them.
She said her uncle had authorised the donations without realising the implications.
Leigh also points to the case of Brisbane-based telemarketing company Pareto Phone which undertook fundraising work for major charities and had its database hacked last year. Tens of thousands of donors to various charities had their data published on the dark web. Two months later the company collapsed.
The government is consulting with the sector while drafting amendments to the Privacy Act after a review that recommended 116 changes.
