Five things you need to know about the new Code of Fundraising Practice

• 1. Organisations need to refer to other sources

Rather than repeating guidance from other sources in which the Fundraising Regulator is not the lead authority, the new Code signposts to relevant legislation and guidance, such as to the Information Commissioner’s Office on data protection and HM Revenue & Customs on Gift Aid. The result is a significantly shorter and more streamlined code which requires charities to cross-refer to other sources.

• 2. There is a new principles-based approach

The new Code replaces lengthy and prescriptive rules with a principles-based approach. This shift provides greater flexibility and encourages charities to exercise good judgement when making fundraising decisions. However, it may also make it more challenging for charities to interpret the Code and determine how to comply, as the appropriate course of action will depend on what is appropriate, reasonable and proportionate in each situation.

• 3. Documenting fundraising decisions is even more important

The principles-based approach makes documenting fundraising decisions more important than ever. Charities must be able to demonstrate that their fundraising activities comply with the Code, that their governance measures have been followed and be prepared to provide evidence of compliance in the event of an investigation by the Fundraising Regulator. This is a similar approach to that required by the Charity Commission. The Fundraising Regulator has published a support guide on best practice in documenting fundraising decisions, which provides guidance on recording meeting minutes, managing conflicts of interest and completing and documenting risk assessments.

• 4. There are new obligations on organisations when fundraising

The new Code contains a number of new obligations on charities. For example, charities are now required to take reasonable steps to protect fundraisers from harm and harassment while fundraising, and to ensure that fundraisers feel supported and able to raise concerns. Charities should review their current arrangements for fundraisers and update relevant policies accordingly.

There are also new requirements to ensure that potential donors have access to all the information needed to make an informed decision when donating through unstaffed collections, such as ‘top up’ payment options at supermarket tills. Fundraising organisations must provide clear and accurate information about the collection such as who the money will go to and details of processing fees.

It is recommended that charities review the new Code alongside the Fundraising Regulator’s table of changes, which helpfully outlines the key differences between the old and new versions.

• 5. Organisations must cooperate with the Fundraising Regulator

There is a new obligation on charities to cooperate fully and constructively with any investigation by the Fundraising Regulator into a potential breach of the Code. Whilst the Code is not legally binding, the Fundraising Regulator has a powerful set of tools to drive compliance including referring matters to the Charity Commission or Information Commissioner’s Office, highlighting non-compliance on its public Fundraising Directory, suspending the charity’s use of the Fundraising Badge and publicising failures to comply on its website. In short, charities that do not follow the new rules risk both regulatory action and reputational damage. The Fundraising Regulator has published a helpful guide on what is expected of charities during an investigation.

If you have any questions on how the new Code might affect your organisation’s fundraising practices, please contact our charity law experts for tailored advice.