The changes are introduced by the fundraising sections of the Charities (Protection and Social Investment) Act 2016. They will help charities to demonstrate their commitment to protecting donors and the public, including vulnerable people, from poor fundraising practices
The new law will also help to ensure that fundraising standards form part of the agreements between charities and any commercial participators or professional fundraisers with whom they work.
There are 2 new requirements:
1. 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
2. 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
Your charity may be affected by either or both of the new requirements, which came into force on 1 November 2016.
More information can be found on www.gov.uk website