Key considerations for Charitable Fundraising

Joint regulators, the Charity Commission and the Fundraising Regulator have recently published guidance for individuals regarding their roles in fundraising for a charity.

Although the guidance is aimed at individuals, it provides useful reminders about how charities should approach fundraising, engage with the public and establish appropriate procedures. The key considerations for charities are outlined below:

1.   Transparency

The joint regulators have urged fundraisers to be transparent with donors by clearly communicating their financial target, the specific charitable project they are supporting and the fundraising time frame.

With transparency, it is a two-way street and is also for the charity to ensure that it is engaging with the fundraiser and providing all necessary information, such as the specific charitable cause the fundraiser is to support and ensuring that this aligns with their charitable objectives.

It is further key that charities are following the Fundraising Code which covers regulations surrounding the different types of fundraising, whether that be competitions or online donations.

2.   Planning for Risks

Effective fundraising requires careful risk management. A compliant fundraising policy is essential for safeguarding and planning and should address key risks, including the handling of personal data.

Trustees should also consider fundraising risks, including what will happen if a campaign under performs and the funds must be used elsewhere. This will require a clear trustee strategy, meetings between committees and a clear policy objective.

3.   Fundraising and Advertising

Fundraising and advertising go hand in hand. Advertising is essential for explaining a charity’s initiative and how the funds raised will be used, so all marketing materials must be clear. Where funds are raised for a specific project, the charity should state this clearly and keep those funds separate from its general income.

If a charity’s income exceeded £10,000 in the previous financial year and it is not a CIO, its advertising materials must state that it is a registered charity and include its registered charity number, or company number where applicable. Trustees and directors should therefore check all fundraising materials carefully before publication, whether in print (or online, as is more common!).

4.   Fundraising by connected individuals

A trustee, officer or employee of a charity who is paid more than £10 per day or £1,000 per year must make a ‘solicitation statement’. The statement must identify the charity for which they are fundraising, explain their relationship with it and disclose that they are paid for their role. This requirement promotes transparency by ensuring the public knows that the fundraiser receives payment.

If a connected individual does fundraise, it is important that internal procedures on managing conflict of interest are followed. Again, this comes down to ensuring that there are clear policy and procedure within the charity’s governing document should this occur.

Conclusion

Transparency, policy, procedure and communication are the headline takeaways and should be at the forefront of charities’ minds when liaising with individual fundraisers and carrying out fundraising initiatives.

If your charity requires advice regarding its fundraising policies, procedures or strategy please contact the Charities Team at Leathes Prior via email at info@leathesprior.co.uk or by telephone on 01603 610911.