The key recent developments are as follows.
We previously reported on proposals for the Fundraising Preference Service (FPS), which aims to ensure that individuals receive only the fundraising communications that they want. The Fundraising Regulator (the FR) has now issued details on how the FPS will operate.
Originally the FR proposed that the FPS would allow people to "hit a reset button" on their fundraising communications from charities. However, it has now retreated from that position, and instead people will have to select specific charities from which they no longer want any communication.
Importantly, all charities will now need to comply with the FPS. Previously it was proposed that only those charities which spend over £1,000,000 on fundraising would have to use the service.
The FR will notify charities that are 'blocked' by people through an automated system, which will also monitor charities' compliance with the system. The 'opt-out' will apply to all forms of communication, including email, text, telephone and addressed mail.
The FPS is due to be launched in the spring or early summer of 2017.
The FR has published its first adjudication decision, on the now defunct Bristol-based fundraising agency Neet Feet.
An investigation was launched after allegations were made against Neet Feet in the national press, and it concluded that Neet Feet had breached six sections of the Code of Fundraising Practice. The fundraisers:
The report strongly criticised seven charities, including Save the Children and RNIB, which had employed Neet Feet. The FR found that the charities failed to make reasonable efforts to ensure that Neet Feet complied with the Code. The report found that the charities were "largely focused on how much money was raised" and not focused enough on how that money was raised. A further charity had also used Neet Feet's services, but had exercised appropriate oversight of its activities.
This demonstrates that charities should expect to be held accountable for the actions of professional fundraisers, and are expected to specify contractual obligations in their contracts with fundraisers and monitor compliance with fundraising standards.
The FR has received around 300 complaints so far and it is investigating 12 or 13 of these in more depth.
The Fundraising Regulator has started rolling out its registration and levy system. It is sending out invoices in staggered waves, starting with the largest charities. The levies raised £500,000 in October, and the target for November is £600,000. The FR hopes to generate a total of £2.4 million by January 2017.
Charities with fundraising expenditure of £100,000 or more are eligible to pay the annual levy. For charities that have not yet been contacted, a timetable is available on the FR's website. Charities with a fundraising expenditure of less than £100,000 are able to register with the FR for a small registration fee.
Sections of the Charities (Protection & Social Investment) Act 2016 relating to fundraising came into force on 1 November 2016.
Charities must now include extra information in any written agreements between the charity and third party fundraisers, including:
For charities that are required to have their accounts audited, trustees will also have to ensure that certain fundraising information is included in the annual report, including:
Following the legislation coming into force, the Charity Commission issued a joint alert with the Fundraising Regulator to highlight the risks of entering into arrangements with a professional fundraiser.
The alert advised Trustees to avoid arrangements with the following characteristics:
The Fundraising Regulator has signed memorandums of understanding with the Information Commissioner's Office, the Institute of Fundraising, and the Higher Education Fundraising Council for England (HEFCE). The FR will cooperate with these other regulatory bodies and share information.
