Worcester charities are losing money because profit-making businesses are misleading generous people with cleverly worded leaflets.

Acorns Children's Hospice said its fund-raising was being affected by some collectors who deliver leaflets or collection sacks looking for clothing. Most indicate that the collection is for a good cause.

Dennis Hyde, Acorns' transport and stock manager, said: "These collectors take the clothes and shoes direct to the rag merchant who pays them a price per sack. The rag merchant will then export the clothes to places such as Eastern Europe for profit.

"The problem is that these collectors are conning people into thinking that they're collecting for a good cause but they're just lining their own pockets.

"Things are definitely getting worse in the Midlands, and these people are even stealing charity bags. Recently our vans arrived in Bromsgrove to carry out a planned street collection only to find someone had beaten us to it and taken the bags, leaving us with no new stock for one of our shops."

Police are also currently investigating reports that clothing left in marked bags in Worcester intended for collection by the British Heart Foundation has been stolen.

The most recent incident was first brought to police attention by the British Heart Foundation's official driver, who reported that a blue Transit-type van was going around collecting bags of clothes intended to benefit the charity in the Summer Street and Brickfields area of the city.

The charity's official bags are also being picked-up by the van driver and re-marked with a different collection date.

The van is a left-hand drive model. It is reported as carrying a vehicle registration number SVO 855 and police believe the driver may be Eastern European.

Kate Bradley, spokesperson for Worcestershire Trading Standards, said some companies are making money from what many of the public believe to be charity donations

She said: "Collections of this type are not registered charities and there is no real way of knowing if the companies do send their profits to these causes.

"To ensure their donations do go to charity people are advised to give directly to a local charity shop or donate to a charity shop collection sack. These should make clear reference to the charity registration number and many will also carry the Association of Charity Shops kitemark.

"If people have any doubts about a leaflet asking for donations, they can contact the Charity Commission helpline on 0870 333 0123 to check whether the collection is for, or on behalf of, a registered charity."

Anyone who can help police with information about the blue van incident is asked to call Worcester police by phoning 08457 444888, quoting incident number 416S/170506.