15 March 2019
From September 2019, the fundraising regulator is introducing two extra bands at the lower end of the fundraising levy to help smaller charities move up the scale more gradually. This could result in some smaller charities paying less but will also require a number of charities to move up a band.
The levy was introduced in 2016 and asks charities with fundraising costs of over £100,000 to pay a voluntary annual levy to the fundraising regulator in order to be included on the register. Charities with lower fundraising costs can register for a flat fee of £50 per year.
When the levy was introduced in 2016, the fundraising regulator said they would make no changes to it for three years, so as they approach year four they have reviewed the current banding. They are responding to feedback from smaller charities who found the previous banding too steep when moving up a step. They are adding two new bands near the bottom of the scale so smaller charities can move up the scale more gradually.
| Charity annual reported fundraising expenditure | Annual Levy £’s |
| £100,000 - £149,000 | £150 |
| £150,000 - £199,999 | £300 |
| £200,000 - £349,999 (NEW) | £500 |
| £350,000 - £499,999 | £800 |
| £500,000 - £749,999 (NEW) | £1,000 |
| £750,000 - £999,999 | £1,500 |
| £1m - £1,999,999 | £2,500 |
| £2m - £4,999,999 | £4,000 |
| £5m - £9,999,999 | £6,000 |
| £10m - £19,999,999 | £8,000 |
| £20m - £49,999,999 | £12,000 |
| Over £50m | £15,000 |
Larger higher education institutions and arms-length bodies will continue to pay a flat rate levy of £1,000. Registration for charities below the levy amount remains at £50 per year.
These changes take place from 1 September 2019 and all charities affected by the change will be informed in writing before the fundraising regulator issues their invoices in August 2019.
Charities can estimate their levy by reviewing their fundraising costs in their annual reports for their most recently filed accounts (up until now it has been based on fundraising costs from charities’ 2014 accounts).
If you have any questions or would like assistance, please contact me or your local UHY charity adviser. Alternatively, if you would like to read more charity-focused blogs please click here.
