Regulating Fundraising for the Future: Sir Stuart’s Report Published

Sir Stuart’s long-awaited report on the current state of fundraising has been published. The full review can be read here – https://www.ncvo.org.uk/images/documents/policy_and_research/giving_and_philanthropy/fundraising-review-report-2015.pdf, but if you’re short for time, our 10-point summary below captures the headlines:

1. The report found that the current approach to self-regulation is unnecessarily complex and is no longer fit for purpose.
2. A hybrid of state regulation (involving statutory bodies) and self-regulation is favoured.
3. The review recommends abolishing the Fundraising Standards Board (FRSB) and establishing a new body, The Fundraising Regulator, which will be responsible for the Fundraising Code of Practice and for all complaints about fundraising. The Fundraising Regulator will ultimately be accountable to Parliament and is estimated to cost between £2m and £2.5m.
4. It is proposed that the Fundraising Regulator will be funded from a levy on the fundraising expenditure of those organisations with annual fundraising expenditure of £100,000 or more.
5. It is recommended that The Fundraising Regulator should have a wider array of sanctions available to it including naming and shaming, cease and desist orders, compulsory training and clearance of future campaigns.
6. The report recommends that there should be an opportunity for all organisations to register their compliance with the Code and receive an FRSB ‘tick’ as a sign of their membership.
7. A new Fundraising Preference Service (FPS) is suggested, where individuals can register if they no longer wish to be contacted about fundraising. Organisations will have to consult the FPS prior to any campaigns.
8. A merger between the Institute of Fundraising and the Public Fundraising Regulatory Association (PFRA) is proposed, with the regulatory aspects of PFRA’s role being transferred to The Fundraising Regulator.
9. It is suggested that a summit is held to bring together the bodies currently involved in self-regulation to agree the mechanics of their changes.

Charities are encouraged to protect the use of donors’ personal data and adopt a system of ‘opt in’ only in their communications, ahead of an EU Regulation which is likely to enshrine such data protection proposals in law in due course.

If you would like to learn more about our data protection work for charities, please contact our charity law solicitors on 01895 207809 or email charities@ibblaw.co.uk.