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The Fundraising Regulator – an explanation of a charity’s further obligations and commitments

Your charity may have received a letter from the Fundraising Regulator asking it to pay a fundraising levy. Although described as “voluntary”, it seems to be the expectation that all charities will pay this.

By paying the levy, a charity will fall under the jurisdiction of the Fundraising Regulator. This brings with it further obligations and commitments as outlined below.

What is the Fundraising Regulator?

  1. The Fundraising Regulator was established in July 2016 in response to public and media concern over certain fundraising tactics used by some charities (e.g. excessive calling, hassling for donations).
  2. It’s the new, independent regulator of charitable fundraising, and its aims are to strengthen the system of charity regulation and restore public trust.
  3. It will promote standards for fundraising practice and has set out a “fundraising code” which charities are expected to comply with.
  4. It has the power to investigate charities in breach of fundraising “best practice”, adjudicate complaints from the public, and “take proportional remedial action”. (This is in addition to the powers of the Information Commissioner’s Office (ICO) to fine charities for breaches of data protection law.)
  5. It will establish a fundraising preference service (like the telephone and mail preference service). This is currently in the development phase.

What does paying the levy mean?

  1. The Fundraising Regulator’s levy is an annual fee collected from charities in England and Wales that spend £100,000 or more a year on generating voluntary income. The amount due is based on this annual spend, with ten bands ranging from £150-£15,000. The fee collected should remain static for 3 years, but then may change.
  2. By paying the levy, a charity gets access to the “Fundraising Regulator’s Registration Pack” – in effect, all of the various forms of the “FR Registered With” Badge. It will also receive a password and unique registration number.

The Badge

  1. Displaying the Badge demonstrates commitment to best practice in fundraising.
  2. It confirms to the public that the charity is registered with the Fundraising Regulator.
  3. The charity can display the Badge on its digital and printed media.
  4. There are guidelines for using the Badge. Essentially, the original artwork must always be used and not modified, and it must be kept clearly visible. The guidelines are an easy-to-read six-page document: https://www.fundraisingregulator.org.uk/wp-content...

The Badge must be used:

  1. in accordance with the Terms and Conditions and the standards set out in the Code of Fundraising Practice; and
  2. in line with the Fundraising Promise.

In summary (and referring to the individual documents):

A. The Fundraising Promise

Charities that have registered with the FR make a promise and commitment to donors that they will ensure that their fundraising is legal, open, honest and respectful.

In particular, the charity will commit to high standards and be:

all as further outlined in the easy-to-read two-page document.

B. The Terms and Conditions

In brief, the Ts and Cs (a ten-page document) require that:

A. When fundraising, the charity will:

B. The charity will have in place a complaints procedure that complies with the requirements of the Fundraising Regulator, namely:

C. The charity will provide the FR with copies of fundraising materials if requested, and cooperate if a complaint is referred.

D. The Ts and Cs continue to detail what happens if a complaint is referred to the FR and what steps the FR can require a charity to take, from issuing a private apology, referring it to the Charities Commission or elsewhere, and terminating registration with the FR.

E. The Ts and Cs then set out the support that the FR provides, including guidance regarding “good fundraising practice and complaints management”.

F. The charity will use the Badge as stipulated.

G. The charity agrees to pay the annual fundraising levy.

C. Code of Fundraising Practice

  1. This outlines (over 76 pages) the standards expected of all charitable fundraising organisations across the UK.
  2. Overall, the conduct of all fundraising organisations must be legal, open, honest and respectful.
  3. The Code is divided into sections, not all of which will be relevant to each organisation, so areas can be read as they will apply to each charity’s fundraising practices.
  4. The sections, which should be referred to as applicable, are:
    1. Key Principles and Behaviours (e.g. integrity)
    2. Working with Volunteers
    3. Working with Children
    4. Working with Third Parties (e.g. fundraising consultants, freelance fundraisers, agencies and suppliers)
    5. Fundraising Communications and Techniques
    6. Direct Marketing
    7. Reciprocal Marketing
    8. Telephone
    9. Digital Media
    10. Trusts
    11. Major Donors
    12. Corporate Partnerships
    13. Raffles and Lotteries
    14. Fundraising through Payroll Giving
    15. Events
    16. Public Collections
    17. Static Collections
    18. Legacies
    19. Payment of Fundraisers (if you ever go this route, let me know as there as certain rules, including that there be a written agreement with them)
    20. Handling Donations

It is recommended that fundraising staff familiarise themselves with this Code and put into practice any requirements/recommendations if not already doing so.

For further information please contact:

This article is for general information purposes only and does not constitute legal or professional advice. It should not be used as a substitute for legal advice relating to your particular circumstances. Please note that the law may have changed since the date of this article.

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