THE British Heart Foundation has warned that as little as one third of items donated to charity via letterbox bags end up in charity shops.

Research has revealed that 70 per cent of the bags an average householder receives are from commercial companies working with charities for financial gain.

The companies re-sell donated goods for profit, mostly overseas.

They then make a royalty payment to the charity, which can be as little as five per cent.

The BHF said 62 per cent of people in Lanca-shire were not aware these commercial companies existed.

Its shops have seen a 36 per cent drop in household collections and a loss of £508,582 over the last two years in the North West alone.

Mike Lucas, BHF retail director, said: “Residents have the right to know what happens to their donations and currently this information isn’t clear.

The BHF advises people to take donations directly into charity shops or request doorstep collections.