Updated Charity Commission guidance on fundraising

While the underlying law remains the same, the updated guidance reflects the Commission’s updated expectations for good practice, which all charities should follow. Like much of the Commission's guidance, CC20 - with a focus on fundraising - is there to promote good governance, trust in and the reputation of the charity sector, and to emphasise the key role and responsibilities held by trustees.

CC20 provides a helpful tool and overview for charities alongside the Code of Fundraising Practice and other resources produced by the Fundraising Regulator.

While the new guidance doesn't seem to introduce any dramatic changes, there are some points and developments worth considering:

• Clearer expectations: The Commission has described the guidance as "focusing on how to comply" - it is more prescriptive than before. In practice this means greater detail about what charities "must" do (legal requirements) and "should" do (best practice), with practical examples to reduce ambiguity.
  
  Where the guidance makes a best-practice recommendation that is not relevant or practical in a particular context a charity may decide not to follow a given recommendation if it has good reason not to.
• Fundraising Regulator Registration: Charities are told more emphatically that they should register with the Fundraising Regulator and comply with the Code of Fundraising Practice. Specific sections of the Code and related guidance are highlighted for reference.
• Written fundraising plans: Charities are still expected to have a written fundraising plan, which should now include:
  • The impact the charity aims to achieve and the funds needed to support it.
  • Secure methods for collecting and banking funds.
• Fundraising materials: There is enhanced guidance on what must and should be disclosed in fundraising materials, including:
  • Solicitation statements for trustees, employees, and volunteers involved in paid fundraising roles.
  • Clear and transparent information about the charity for which funds are being raised and how to approach fundraising for specific projects: whether to give examples but to be clear funds are raised for general purposes or, if raising for a specific purpose, include a secondary purpose if the specific purpose isn't possible.
  • Disclosure of whether funds raised will be used to cover fundraising costs.

Social media fundraising posts don't need to include all the detail, but it should be made accessible elsewhere.

• Third-Party fundraising: Charities should internally approve materials produced by third parties and Trustees should consider when final approval should remain their responsibility.
• Working with professional fundraisers and commercial participators: There is enhanced guidance on
  • Specific due diligence expectations
  • Reasonable fees
  • Monitoring fundraising, and considerations as to whether a fundraising agreement should prohibit or permit sub-contracting.
• Subsidiary oversight: Charities must ensure proper oversight of fundraising activities by any subsidiary, supported by fundraising agreements. There is helpful confirmation, though, that a subsidiary can fundraise on behalf of the charity and is not a professional fundraiser or commercial participator.
• AI: The updated guidance provides a link to Fundraising Regulator guidance on using AI in fundraising.
• Fraud: There is guidance on preventing and reporting fundraising fraud, reporting suspicious donations, and returning or refusing donations.

In light of the update to Charity Commission guidance CC20, we suggest that charities:

• Register with the Fundraising Regulator if they have not already done so - many charities will have already put in processes to ensure that their fundraising complies with the Code of Fundraising Practice.
• Make time for trustees to reflect on the updated guidance at a trustee meeting.
• Review current written fundraising plans, fundraising policies, fundraising materials, staff solicitation statements and arrangements with fundraising subsidiaries/third parties.

For further guidance feel free to contact Gabriel Cohen in our Charity Law and Governance team. We are here to help you navigate the complexities of charity law with confidence.