Politicians have been warned moves to impose regulations around professional charity collectors could have catastrophic consequences for the fundraising sector.
The National MP Amy Adam's Fair Trading Amendment Bill will make it compulsory for professional charity collectors to disclose how much money is actually going to a cause, where a certain percentage is being retained.
Currently there are no rules on what has to be disclosed to donors when seeking donations to charities.
Life Flight Trust chief executive David Irving told a select committee he is worried that if the bill is introduced, some telemarketers may not be prepared to work for charities.
Mr Irving says if charities were unable to use telemarketers, the consequences for the sector would be catastrophic.
The Fundraising Institute urged the politicians to allow the industry to implement self regulation, which it is working on now.