A bill that requires organisations or companies collecting on behalf of charities to have more transparency on what fees they charge has passed its third and final reading in Parliament.
The Fair Trading Ammendment Bill was passed by Parliament on Wednesday.
National MP Michael Woodhouse says more than 25,000 charities are registered with the Charities Commission and the sector received more than a $1 billion in donations in the last year.
He says media reports suggest it is common for telemarketing and street collecting firms to retain a large percentage of what they collect for charities.
Mr Woodhouse says the legislation will raise awareness of what fees are being charged by the companies and will provide people making donations with more information.