Recent Developments on Fundraising Regulation
As fundraising regulation remains in the news, we recap on recent developments.
Funding Regulator Makes Six Key Changes to Code of Practice
In July, the Fundraising Regulator published the revised Code of Fundraising Practice, which highlights changes in six key areas, including trustees, solicitation statements, whistleblowing, the fundraising ask, charity collection bags, and agreements/monitoring of third party fundraising agencies. Some of the changes will be implemented immediately, while others won’t come into force until 30 November this year.
The chair of the Regulator's standards committee has said that she hopes the changes will help strike a better balance on crucial fundraising issues and that a strong code will encourage public trust and confidence in giving, which in turn will help charities to fundraise more effectively.
Fundraising Regulator Names Charities Who Have Not Yet Paid the Levy
The Fundraising Regulator has published a list of the names of 1,570 charities who have either paid or committed to pay, and those who have not paid, the year 1 levy. Payment of the levy is a clear way for charities to demonstrate their commitment to fundraising good practice and governance, including safeguarding their integrity and reputation, which are vital to the work that they do and their relationship with the public.
Large Number of Suppression Requests Made via the Fundraising Preference Service
The Fundraising Regulator has revealed that 6,305 suppression requests have been made since the Fundraising Preference Service (FPS) launched in July. The FPS is run by the Fundraising Regulator and enables members of the public to block phone, email, text and mail communications from named charities. It is available online or by phone and individuals are also able to use it on behalf of a friend or relative.
The introduction of the FPS has been seen as an important step in re-building trust between the sector and the public. The service allows the public to have greater control over which charities are allowed to contact them and how.
Meeting Held Between Regulators and Fundraising Platforms to Discuss Combatting Fraud
On 27 September, the Charity Commission and the Fundraising Regulator met with senior figures from some of the UK's largest internet fundraising sites, such as JustGiving, BT MyDonate, GoFundMe and Virgin Money Giving, to discuss a range of issues including how to combat fraud.
The aim of the meeting was to collectively agree principles that will ensure individuals are supported when setting up or donating to online appeals, help to increase public trust and confidence in charity and online giving, and ensure that charitable resources in the short, medium and long-term are used as effectively as possible. Points of note include:
- The Charity Commission and Fundraising Regulator will work with platforms in reviewing their resilience to fraud and to create a new forum to share advice and intelligence about potential fraud threats.
- Platforms recognise their legal responsibility when acting as commercial participators for charitable donations to make it clear to donors upfront what proportion of their donation will reach the charity.
- The Fundraising Regulator is reviewing the Code of Fundraising Practice and wants to update and expand the standards for online fundraising set out in the Code. Platforms will work with the Fundraising Regulator to contribute to the review.
RNIB Judged to Have Breached Code of Fundraising Practice
Following a complaint from a member of the public in April 2016, the Fundraising Regulator has found that the RNIB breached the Code of Fundraising Practice by not making “all reasonable efforts to monitor” the compliance of one of its fundraising agencies at the time the complaint was made. The Fundraising Regulator therefore found that the charity had breached section 4.2(b) of the Code of Fundraising Practice.
The RNIB has made progress since the problem was reported and says that it is fully committed to ensuring that both itself and its fundraising agencies are aligned with the Code of Fundraising Practice.
Fundraising Regulator Introduces Private Site Fundraising Rulebook
A new rulebook for private site fundraising has been introduced by the Fundraising Regulator, following a review of face-to-face fundraising conducted with the Institute of Fundraising.
It covers privately owned sites such as shopping centres, supermarkets and shop porches, and highlights a number of site specific standards.
The rulebook also sets out a number of new standards, including:
- avoiding behaviours that could cause members of the public to become startled or anxious, or bring the represented charity into disrepute
- positioning fundraising teams to avoid obstructing pedestrians and disrupting businesses
- wearing an identification badge and, where appropriate, charity branded clothing
Fundraising Preference Service Email Scam
The Fundraising Regulator has warned of an email scam being sent to charities. The email requests payment for the Fundraising Preference Service (FPS) or suggests that an invoice is due.
The FPS has confirmed that the cost of its invoices is covered by the fundraising levy and has asked that organisations who fall within the scope of the fundraising levy do not assume the invoices they are currently sending for Year 2 are in any way associated with the fraudulent scheme. Any such invoices will have been sent by the following address: levy@fundraisingregulator.org.uk
If you know or you believe you have received one of these fraudulent FPS emails and have concerns, or if you have any questions, please contact the Fundraising Regulator on 0300 999 3407 or email enquiries@fundraisingregulator.org.uk.
Museums Encouraged to Regularly Update Donations Policies
The National Audit Office has published a report for the Department for Digital, Culture, Media and Sport (DDCMS), warning them that written policies and procedures at museums and galleries are often either outdated or insufficiently detailed.
The report Due Diligence Processes for Potential Donations and is based on a study of eight museums or museum groups that report to the DDCMS. It found that the museums and galleries generally had a good awareness of the risks and issues around management of donations, however their written policies and procedures did not always reflect everyday practice, either because they were outdated or insufficiently detailed. There was also a lack of public information reflecting the ethical position of many museums on fundraising and donations.