But rarely-enforced laws regulating public collections are now being used by some local councils to limit their work,
Source? Verifying details?? Which Councils??¿
To me it sounds like an internal policy that's been formulated by their own people, or a "consultant".
I also find it rubbish to believe anyone would be so ignorant as to believe, or tell another person, that rattling a tin full of money could be offensive to anyone on the basis of religion.
The only thing that seems even mildly logical or realistic here is the intimidation factor. I don't know what it's like in the US or the UK, but down under, people collecting for charities are usually outworkers that get a 7-15% commission of what they raise, so they do apply pressure.