The government is to scrap the court poor box. Payments to charities will be abolished under new legislation being prepared by the Justice Minister Alan Shatter.
They will be replaced with payments to a new reparation fund which will be administered by the Department of Justice.
It is part of a Bill which also overhauls the community service system. It is in an effort to cut down on the number of people sent to prison for relatively minor offences.
The courts can currently direct that money be given to the poor box alongside, or instead of, another penalty.
However it is 9 years since the Law Reform Commission recommended the poor box be put on a statutory footing.
€2 million was collected through poor boxes of the Irish courts in 2012.
Recent figures showed the cash was divided up between 700 charities and community groups. Oxfam Ireland was the largest benefactor, as they received over €126,000.
A quarter of the funds collected around the country that year came from offenders in Co. Kerry.