The Charity Commission has released guidance on new fundraising rules that came into effect on the 1st of November as part of the Charities Act 2016. The guidance outlines rules on two key areas.
The first requirement applies where a charity, registered or unregistered, uses a professional fundraiser or commercial participator to raise funds. Broadly, it says that the compulsory written agreements between charities and these third parties must include extra information covering:
- the scheme for regulating fundraising or recognised fundraising standards that will apply to the professional fundraiser or commercial participator in carrying out the agreement
- how the professional fundraiser or commercial participator will protect the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches and undue pressure to donate
- how charities will monitor the professional fundraiser or commercial participator’s compliance with these requirements
The second requirement applies to registered charities that, by law, must have their accounts audited. It says that these charities have to include extra information about fundraising in their trustees’ annual report. Broadly, the extra annual statements are about the charity’s:
- approach to fundraising
- work with, and oversight of, any commercial participators/professional fundraisers
- fundraising conforming to recognised standards
- monitoring of fundraising carried out on its behalf
- fundraising complaints
- protection of the public, including vulnerable people, from unreasonably intrusive or persistent fundraising approaches, and undue pressure to donate
In a statement by the regulator, Sarah Atkinson, director of policy and communications at the Charity Commission said: “Many in the sector are working hard to support these changes, and to review their own fundraising practices so that public trust can be restored”. “The new Charities Act provisions will help charities to demonstrate that their donors and the public are treated with respect and protected from intrusive practices, and that recognised fundraising standards are always part of the picture where charities are working with a professional or commercial partner,” she said.
The Fundraising Regulator said it will take a “flexible approach” to the new rules until March, to allow charities time to transition. Useful documents include: Charity fundraising: a guide to trustee duties (CC20)and Charity reporting and accounting the essentials November 2016 (CC15d) which have been updated to reflect the new requirements. The Fundraising Regulator has also published an FAQ guide to amends within the Code of Fundraising Practice.
Clients of Fundraising Central will notice amends to SLA’s created between now and March 2017 and those who are due for renewal after that will receive an updated version in March.
Fundraising Central are member of the Institute of Fundraising and adhere to the Code of Fundraising Practice.
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