The reason the technique is so popular is that charities usually get a very profitable return on their investment (often around 3:1)[1] because the person is asked to donate on a regular basis.
By securing long term donations, charities are able to plan future campaigns in the knowledge that they have a guaranteed amount of money to work with.
[citation needed] Face-to-face fundraisers also serve to raise awareness of small charities and highlight the importance of new campaigns in larger, more well known organisations.
The primary role of a fundraiser is to secure financial support, but charities also consider it an effective way to reach people and share important information.
[citation needed] The regulations made by the Charities Act 2006 in the UK led to significant changes to face-to-face fundraising.
Paid street fundraisers stand in busy areas and approach passers-by to persuade them to donate money to the charitable cause they are promoting.
The fundraiser will then move the conversation towards asking for a financial contribution (via Direct debit), usually a regular monthly pledge.
[citation needed] Often, fundraisers are discouraged from signing up people in full-time education or under the age of 21, as statistically they are more likely to cancel their direct debit than others.
[citation needed] Frequent complaints about paid street fundraisers include the use of aggressive or deceitful tactics, inability to accept anything but an ongoing donation and lack of knowledge of the charity.
[7] Opinion polls suggest high levels of public hostility towards street fundraisers, with as many as 80 per cent of those interviewed being against them.
[9] However, some people find street fundraisers intimidating and may feel pressured into signing up to regular giving agreements.
In the UK some local councils have set up "cold caller exclusion zones" to prevent doorstep fundraisers.
[10] In the Republic of Ireland the Charities Act, 2009 will require all street fundraisers to acquire a permit from a Chief Superintendent of the Garda Síochána for cash and non-cash collections alike.